FOR FCC RECORD ONLY
$// MO&O, Cable Act of 1992, DA 94-1332//$
$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$


                                Before the
                     FEDERAL COMMUNICATIONS COMMISSION           DA 94-1332
                          Washington, D.C. 20554


In the Matter of:                  )
                              )
STAR CABLE ASSOCIATES         )
                              )
Petition for Reconsideration            )
                              )
of Certification of                     )
Carroll County, Virginia           )
to Regulate Basic Cable Rates      )
(VA0446)                      )


                       MEMORANDUM OPINION AND ORDER


Adopted:  November 28, 1994                  Released:  November 29, 1994

By the Chief, Cable Services Bureau:

I.  INTRODUCTION

     1.   On December 13, 1993, Star Cable Associates ("Star Cable") filed a timely
petition for reconsideration challenging the certification of Carroll County, Virginia to
regulate rates for basic cable service and associated equipment.  In addition, Star Cable
submitted responses to the Bureau's oral requests for clarification.  Carroll County did not
file an opposition to Star Cable's petition.

     2.   Section 623(a)(4) of the Communications Act of 1934, as amended, allows
franchising authorities to become certified to regulate basic cable service rates of cable
operators that are not subject to effective competition.  For purposes of the initial request
for certification, local franchising authorities may rely on a presumption that cable operators
within their jurisdiction are not subject to effective competition, unless the franchising
authority has actual knowledge to the contrary.  Certification becomes effective 30 days
from the date of filing unless the Commission finds that the franchising authority does not
meet the statutory certification requirements.  Cable operators may file petitions for
reconsideration of the franchising authority's certification within 30 days of the effective date
of certification.  Rate regulation is automatically stayed pending review of a timely-filed
petition for reconsideration alleging the presence of effective competition.

II.  DISCUSSION

     3.   Star Cable argues that its cable system is subject to effective competition
because it serves fewer than 30 percent of the households in the unincorporated areas of
Carroll County, the franchise area.  Star Cable claims that it currently serves only 357 of
the 9,580 households (that is, occupied housing units) in the franchise area, or 4 percent of
the total number of households.  As supporting documentation, Star Cable provides 1990
Census data which shows that there are 9,580 households in the unincorporated areas of
Carroll County.  Star Cable also submits a computer print-out with sufficient subscriber
information to support its claim that it serves 357 households in the franchise area.  Finally,
Star Cable provides an affidavit by a responsible official certifying the accuracy of the data
included in the petition.
                                     
     4.   In the absence of a demonstration to the contrary, cable systems are presumed
not to be subject to effective competition.  The cable operator bears the burden of rebutting
the presumption that effective competition does not exist with evidence that effective
competition, as defined by Section 76.905 of the Commission's Rules, is present within the
franchise area.  Star Cable has met this burden.  Star Cable appropriately relied on data
reflecting the number of households as required by our rules.  Relying on this data, Star
Cable has submitted sufficient evidence demonstrating that its cable system serving Carroll
County serves 357 of the 9,580 households, or 4 percent of the households, within its
franchise area.  Thus, we find that Star Cable's system serving the unincorporated areas of
Carroll County is subject to effective competition.  Accordingly, its petition is granted.

III.  ORDERING CLAUSES

     5.   Accordingly, IT IS ORDERED that the petition for reconsideration filed by
Star Cable challenging the certification of Carroll County, Virginia to regulate Star Cable's
basic cable rates IS GRANTED.

     6.   IT IS FURTHER ORDERED that the certification of Carroll County to
regulate Star Cable's basic cable rates IS RESCINDED.
     7.   This action is taken pursuant to delegated authority pursuant to Section 0.321
of the Commission's rules, 47 C.F.R.  0.321.

     
                         FEDERAL COMMUNICATIONS COMMISSION




                         Meredith J. Jones
                         Chief, Cable Services Bureau