FOR FCC RECORD ONLY

$// Order,   Cable Act of 1992, certification, DA 94-1381//$
$/  600.623 Regulation of Rates/$
$/  76.905   Standards for Effective Competition/$
$/  76.906   Presumption of No Effective Competition/$
$/  76.910   Franchising Authority Certification/$
$/  76.911   Petition for Reconsideration/$
$/  76.914   Revocation of Certification/$

                                Before the
                     FEDERAL COMMUNICATIONS COMMISSION           DA 94-1381
                          Washington, D.C. 20554

In the Matter of:                    )                                     
                                     )
TELESAT CABLEVISION, INC.            )
                                     )
Petition for Reconsideration         )
                                     )
of Certification of                  )
Citrus County, Fla.                  )
to Regulate Basic Cable Service Rates)
(FCC Community ID No. FL0894)        )

                       MEMORANDUM OPINION AND ORDER

Adopted:  December 1, 1994                Released:  December 2, 1994

By the Chief, Cable Services Bureau:

I.   INTRODUCTION

     1.   On November 16, 1993, Telesat Cablevision, Inc. ("Telesat") filed a timely
petition for reconsideration challenging the certification of Citrus County, Florida ("County")
to regulate rates for basic cable service and associated equipment.  On August 19, 1994,
Telesat submitted its supplemental pleading in response to the Commission's July 29, 1994
Order.  The County did not file an opposition to Telesat'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 which 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.  Such certification becomes effective 30 days from the date of
filing unless the Commission finds that the 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 date such certification becomes effective.  Rate
regulation is automatically stayed pending review of a timely filed petition for reconsideration
alleging effective competition.

II.  DISCUSSION

     3.   Telesat argues that its cable system is subject to effective competition because
it serves fewer than 30 per cent of the households in Citrus County, its franchise area. 
Telesat claims that it serves only 6,618 of the 36,241 households (that is, occupied housing
units) within Citrus County, or 18.3 per cent of the households.  Alternatively, Telesat
states that its penetration rate is 16.1 per cent, still less than 30 per cent, if the total number
of subscribers is adjusted downward to reflect the 789 non "full-time" or "vacation status"
subscribers.  As supporting documentation, Telesat provides a copy of the 1990 Census
data which shows that there are 36,241 households in the franchise area.  Telesat also
submits a computer print-out with sufficient subscriber information to support its claim that it
serves 6,618 subscribers in its franchise area.  Finally, Telesat provides an affidavit under
penalty of perjury by a responsible official certifying to 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 its
franchise area.  Telesat has met this burden.  Telesat appropriately relied on data reflecting
the number of households as required by our rules.  Relying on this data, Telesat has
submitted sufficient evidence demonstrating that its cable system serving its franchise area in
Citrus County serves at the most 6,618 of the 36,241 households, or 18.3 per cent of the
households within its franchise area.  Thus, we find that Telesat's system serving Citrus
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
Telesat Cablevision, Inc. challenging the certification of Citrus County, Florida to regulate
Telesat's basic service cable rates IS GRANTED.

     6.   IT IS FURTHER ORDERED that the certification of Citrus County to
regulate the rates for basic cable service and associate equipment of Telesat Cablevision, Inc.
IS RESCINDED.  

     7.   This action is taken pursuant to delegated authority under Section 0.321 of the
Commission's Rules, 47 C.F.R.  0.321.

                         FEDERAL COMMUNICATIONS COMMISSION




                         Meredith J. Jones
                         Chief, Cable Services Bureau