FOR FCC RECORD ONLY

$// MO&O, Cable Act of 1992, DA 94-1404//$
$/ 300.623 Regulation of rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$

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

In the Matter of:                    )                 DA 94-1404
                                     )
C-TEC CABLE SYSTEMS                  )
OF MICHIGAN                          )
                                     )
Petition for Reconsideration         )
                                     )
of the Certification of              )
Solon Township, MI                   )
to Regulate Basic Cable Rates        )
(MI1539)                             )

                      MEMORANDUM OPINION AND ORDER

Adopted:  December 6, 1994              Released:  December 6, 1994

By the Chief, Cable Services Bureau:

I.  INTRODUCTION

     1.   On November 5, 1993, C-TEC Cable Systems of Michigan, Inc. ("C-TEC")
filed a timely petition for reconsideration challenging the certification of Solon Township,
Michigan (the "Township") to regulate rates for basic cable service and associated
equipment.  On August 31, 1994, C-TEC submitted supplemental information in support of
its petition pursuant to a recent Commission order.  The 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 of 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.   In its petition, C-TEC asserts that its cable system is subject to effective
competition because it serves fewer than 30 percent of the households within Solon
Township, its franchise area.  Specifically, C-TEC states that it serves 22 of the 441
households within the franchise area, or approximately 5% of the total number of
households.   As supporting documentation, C-TEC provides 1990 Census data that indicates
that there are 441 households (that is, occupied housing units) in the Solon franchise area. 
C-TEC also submits a computer-generated print-out with subscriber information to support its
claim that it serves 22 subscribers in the 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 its
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 system serves less than 30 percent of the
households in the franchise area.  Thus, we find that C-TEC's system serving Solon
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 challenging the certification of Solon Township (MI1539)
to regulate C-TEC's basic service cable rates IS GRANTED.

     6.   IT IS FURTHER ORDERED that the certification of Solon Township to
regulate C-TEC's basic cable rates 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