FOR FCC RECORD ONLY

$// MO&O, Cable Act of 1992, DA 94-1387//$
$/ 300.623 Regulation of rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$


                                Before the
                     FEDERAL COMMUNICATIONS COMMISSION
                           Washington, DC  20554

In the Matter of:    )              DA 94-1387
              )
C-TEC CABLE SYSTEMS OF MICHIGAN,    )
INC.          )
              )
Petition for Reconsideration        )
              )
of the Certification of             )
Vassar Township, MI  )
to Regulate Basic Cable Service Rates      )
(MI0800)      )
       
                       MEMORANDUM OPINION AND ORDER

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

By the Chief, Cable Services Bureau:

I.     INTRODUCTION

       1.     On November 12, 1993, C-TEC Cable Systems of Michigan, Inc. ("C-TEC")
filed a timely petition for reconsideration challenging the certification of Vassar Township,
MI ("Vassar") to regulate rates for basic cable service and associated equipment.  On
August 19, 1994, C-TEC filed supplemental information to its original petition pursuant to a
recent Commission Order.  Vassar Township 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 per cent of the households in Vassar Township, its franchise area. 
Specifically, C-TEC claims that it serves only 228 of the 1,296 households (that is, occupied
housing units) in Vassar Township, or 17.6 per cent of the total number of households.  As
supporting documentation, C-TEC provides a copy of 1990 Census data which indicates that
there are 1,296 households in Vassar.  C-TEC also submits a computer-generated print-out
with sufficient subscriber information to support its claim that it serves 228 subscribers in its
franchise area.  Finally, C-TEC provides a declaration 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 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 serves 228 of the 1,296
households in Vassar Township, or 17.6 per cent of the households, within its franchise area. 
Thus, we find that C-TEC's system serving Vassar 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 Vassar Township,
MI to regulate basic cable rates IS GRANTED.

       6.     IT IS FURTHER ORDERED that the certification of Vassar Township, MI
to regulate C-TEC Cable Systems of Michigan, Inc.'s basic cable service rates IS
RESCINDED.

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

              FEDERAL COMMUNICATIONS COMMISSION


              Meredith J. Jones
              Chief, Cable Services Bureau