FOR FCC RECORD ONLY
$// MO&O, Cable Act of 1992, DA 94-1376//$

$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$

                                Before the
                     FEDERAL COMMUNICATIONS COMMISSION           DA 94-1376
                          Washington, D.C. 20554


In the Matter of:                  )
                              )
C-TEC CABLE SYSTEMS           )
OF MICHIGAN, INC.             )
                              )     
Petition for Reconsideration            )
                              )
of the Certification of            )     
Everett Township, Michigan         )
to Regulate Basic Cable Rates      )
(MI0935)                      )


                       MEMORANDUM OPINION AND ORDER


Adopted:  November 29, 1994             Released:  December 2, 1994

By the Chief, Cable Services Bureau:

I.  INTRODUCTION

     1.   On November 15, 1993, C-TEC Cable Systems of Michigan, Inc. ("C-TEC")
filed a timely petition for reconsideration challenging the certification of Everett Township,
Michigan to regulate rates for basic cable service and associated equipment.  Everett
Township filed an objection.  In addition, C-TEC submitted a supplement providing
documentation in support of its petition pursuant to a recent Commission Order.
                                     
     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 they have 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 from the date such certification becomes
effective.  Rate regulation is automatically stayed pending review of a timely-filed petition
for reconsideration alleging the presence of effective competition.

II.  DISCUSSION

     3.   C-TEC argues that its cable system is subject to effective competition because
it serves fewer than 30 percent of the households in Everett Township, the franchise area. 
The supplement to C-TEC's petition shows that the cable system currently serves only nine
of the 530 households (that is, occupied housing units) in the franchise area, or 1.7 percent
of the total number of households.  As supporting documentation, C-TEC provides 1990
Census data which shows that there are 530 occupied housing units in Everett Township. 
C-TEC also submits a computer print-out with sufficient subscriber information to show that
it serves nine households in the franchise area.

     4.   In response, Everett Township argues that C-TEC has made an affirmative
decision to limit its actual service area to a more densely populated sector of the Township. 
Everett Township claims that, as a result, C-TEC has redefined the franchise area for
purposes of the effective competition standard.  Everett does not submit a copy of its
franchise agreement with C-TEC, a map indicating C-TEC's service area, complaints of C-
TEC's failure to expand its service area or any other documentation to support its claim.

     5.   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.  C-TEC has met this burden.

     6.   As a preliminary matter, we are unpersuaded that the appropriate franchise
area for purposes of effective competition is something less than the entire Everett Township. 
Everett Township provides no evidence to support its argument that C-TEC has made an
affirmative decision to limit its service to a more densely populated area within the
Township.  Thus, we find that Everett Township has failed to sustain its burden of proof that
C-TEC has redefined its franchise area.

     7.   C-TEC appropriately relied on data reflecting the number of households as
required by our rules.  Relying on this data, C-TEC has submitted sufficient evidence
demonstrating that its cable system serving Everett Township, its franchise area, serves nine
of the 530 households, or 1.7 percent of the households, within its franchise area.  Thus,
we find C-TEC's system serving Everett Township is subject to effective competition. 
Accordingly, its petition is granted.

III.  ORDERING CLAUSES

     8.   Accordingly, IT IS ORDERED that the petition for reconsideration filed by
C-TEC challenging the certification of Everett Township to regulate basic cable rates IS
GRANTED.

     9.   IT IS FURTHER ORDERED that the certification of Everett Township to
regulate C-TEC's basic cable rates IS RESCINDED.

     10.  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