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

In the Matter of     )                                     DA-94-1386
              )
C-TEC CABLE SYSTEMS  )
OF MICHIGAN, INC.    )
              )
Petition for Reconsideration        )
              )
of Certification of  )
Tyrone Township, MI (MI0983)        )       
to Regulate Basic Cable Service Rates      )       
              
MEMORANDUM OPINION AND ORDER

Adopted:  December 2, 1994          Released:  December 5, 19994

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 Tyrone Township,
Michigan ("Tyrone") to regulate C-TEC's rates for basic cable service and associated
equipment.  In response to a recent Commission Order, on August 19, 1994, C-TEC filed
additional documentation in support of its original petition.  In response to a staff inquiry, 
C-TEC filed supplementary information on November 9, 1994.  Tyrone 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 the basic cable service rates of cable
operators which are not subject to effective competition.  For purposes of the initial request
for certification, a franchising authority may rely on the presumption that cable operators
within its jurisdiction are not subject to effective competition, unless the franchising authority
has actual knowledge to the contrary.  Such certification becomes effective thirty days after
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 thirty days from 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.  C-TEC argues that its cable system is subject to effective competition in Tyrone
Township, its franchise area, because it serves fewer than thirty percent of the households in
the franchise area.  C-TEC contends that it serves 65 of the 820 households (that is,
occupied housing units) or approximately eight percent of the households in Tyrone
Township.  As support, C-TEC submits a copy of the relevant page from the 1990 census
which demonstrates that there are 820 households in Tyrone Township.  In addition, it
submits a copy of its billing data which indicates that C-TEC has 65 subscribers.  Finally, C-
TEC submits a declaration under penalty of perjury from a company official.   

     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  76.905 of the Commission's rules, is present within the
franchise area.  C-TEC has met this 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 Tyrone Township,
its franchise area, serves 65 of the 820 households or 8 per cent of the households within its
franchise area.  Thus, we find C-TEC's system serving Tyrone Township 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 Tyrone Township to
regulate rates, IS GRANTED.

     6.  IT IS FURTHER ORDERED that the Certification of Tyrone Township, Michigan,
to regulate the basic cable service rates of C-TEC Cable Systems of Michigan, Inc., IS
RESCINDED.

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


              FEDERAL COMMUNICATIONS COMMISSION



              Meredith J. Jones
              Chief, Cable Services Bureau