$/ FOR FCC RECORD ONLY /$ $// MO&O, Cable Act of 1992, DA 94-1392//$ $/ 300.623 Regulation of Rates /$ $/ 1.106 Petitions for Reconsideration /$ $/ 76.906 Presumption of no effective competition /$ $/ 76.910 Franchising authority certification /$ $/ 76.911 Petition for reconsideration of certification /$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of: ) DA 94-1392 ) BROOKRIDGE CABLE SPECIAL PURPOSE ) PARTNERSHIP II, PARENT COMPANY OF ) OF BROOKSHIRE CABLE TV, L.P. ) ) Petition for Reconsideration ) ) of Certification of ) the City of Argyle, Texas (TX1060) ) to Regulate Basic Cable Service Rates ) MEMORANDUM OPINION AND ORDER Adopted: December 5, 1994 Released: December 5, 1994 By the Chief, Cable Services Bureau: I. INTRODUCTION 1. On November 22, 1993, Brookridge Cable Special Purpose Partnership II, parent company of Brookshire Cable TV, L.P., ("Brookridge") filed a timely petition for reconsideration challenging the certification of the City of Argyle, Texas ("Argyle") to regulate rates for basic cable service and associated equipment. Argyle did not file an opposition to Brookridge'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 the franchise authority has 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 from the date such certification becomes effective. Regulation of rates is automatically stayed pending review of a timely filed petition for reconsideration alleging effective competition. II. DISCUSSION 3. In its petition, Brookridge states that its system serving the City of Argyle, Texas, its franchise area, is subject to effective competition because the system serves fewer than 30 percent of the homes within its franchise area. Specifically, Brookridge claims that it serves 170 subscribers in a city with 594 "homes" or only 29 per cent of the "homes" in the franchise area. As support, Brookridge submits a declaration under penalty of perjury from its president who states that the system serves 170 subscribers in a city with 594 "homes" according to the Census Bureau. 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, exists in the franchise area. We find that Brookridge had failed to meet this burden. Brookridge did not support its effective competition claim with adequate documentation. Brookridge's declaration under penalty of perjury in this case was purely conclusory. Although Brookridge's declaration makes reference to the 1990 Census, it does not explain the specific housing data relied upon to support Brookridge's effective competition claim. Thus, it is unclear whether Brookridge relied upon "household" data as required by our rules. As Brookridge has failed to support its effective competition claim with sufficient evidence, we will deny its petition. III. ORDERING CLAUSES 5. According, IT IS ORDERED that the petition for reconsideration filed by Brookshire Cable Special Purpose Partnership II, parent company of Brookshire Cable TV, L.P., challenging the certification of the City of Argyle, Texas, to regulate its basic cable service rates IS DENIED. 6. IT IS FURTHER ORDERED that the automatic stay imposed by Section 76.911(c) of the Commission's Rules, as amended, 47 C.F.R.  76.911(c) IS TERMINATED. 7. IT IS FURTHER ORDERED that Brookshire Cable Special Purpose Partnership II, parent company of Brookshire Cable TV, L.P., SHALL FILE the required rate justifications on the appropriate forms with the City of Argyle within 30 days from the release date of this Memorandum Opinion and Order or 30 days from the date of receipt of notice from the City of Argyle that it is regulating rates, whichever is later. 8 This action is taken pursuant to delegated authority under 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