FOR FCC RECORD ONLY
$// MO&O, Cable Act of 1992, DA 94-1380 //$

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

                                Before the
                     FEDERAL COMMUNICATIONS COMMISSION
                          Washington, D.C.  20554

In the Matter of:                       )                                  DA 94-1380    
                                   )
C-TEC CABLE SYSTEMS OF MICHIGAN,   )                                 
     INC.                          )
                                   )
Petition for Reconsideration                 )
                                   )
of the Certification of                 )
Aetna Township, Michigan                     )
to Regulate Basic Cable Service Rates        )
(MI1619)

                       MEMORANDUM OPINION AND ORDER

Adopted:  December 2, 1994                Released:  December 2, 1994

By the Chief, Cable Services Bureau:

I.   INTRODUCTION

     1.   On November 22, 1993, C-TEC Cable Systems of Michigan, Inc. ("C-TEC")
filed a timely petition for reconsideration challenging the certification of Aetna Township,
Michigan to regulate rates for basic cable service and associated equipment.  In addition, on
August 19, 1994, C-TEC submitted a supplement to its petition pursuant to a recent
Commission order.  Aetna Township, Michigan did not file an opposition to C-TEC'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 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 Aetna Township, Michigan, its franchise
area.  C-TEC claims that it serves 84 of the 434 households (that is, occupied housing unit)
in Aetna Township, Michigan, or 19 percent of the total number of households.  As
supporting documentation, C-TEC provides a copy of 1990 Census data which shows that
there are 434 households in Aetna Township, Michigan.  C-TEC also submits a computer
print-out with sufficient subscriber information to support its claim that it serves 84
subscribers in its franchise area.  

     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.  C-TEC has met that burden.  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 Aetna Township,
Michigan, its franchise area, serves 84 subscribers of the 434 households, or 19 percent of
the households, within its franchise area.  Thus, we find that C-TEC's system serving Aetna
Township, Michigan 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
C-TEC Cable Systems of Michigan, Inc. challenging the certification of Aetna Township,
Michigan to regulate basic cable rates IS GRANTED.

     6.   IT IS FURTHER ORDERED that the certification of Aetna Township,
Michigan to regulate the basic cable rates of C-TEC Cable Systems of Michigan, Inc. 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