$/ FOR FCC RECORD ONLY /$
$// MO&O, Cable Act of 1992, DA 94-1433//$

$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$

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

In the Matter of:    )              DA 94-1433
              )
BROOKRIDGE CABLE SPECIAL PURPOSE    )
PARTNERSHIP II, PARENT COMPANY OF   )  
OF BROOKSHIRE CABLE TV, L.P.        )
              )
Petition for Revocation             )      
              )
of the Certification of             )
the City of Rhome, Texas,           )      
to Regulate Basic Cable Service Rates      )
(TX1069)      )

                       MEMORANDUM OPINION AND ORDER

Adopted:  December 9, 1994            Released:  December 12, 1994    


By the Chief, Cable Services Bureau:
       
I.     INTRODUCTION: 

       1.     On February 18, 1993, Brookridge Cable Special Purpose Partnership II,
parent company of Brookshire Cable TV, L.P., ("Brookridge") filed a petition for revocation
challenging the certification of the City of Rhome, Texas, ("Rhome") to regulate rates for
basic cable service and associated equipment.  Rhome 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.  Rate regulation is automatically stayed pending review of a timely-filed petition
for reconsideration alleging the presence of effective competition.  After the 30-day deadline
for filing petitions for reconsideration has elapsed, cable operators may challenge the
franchising authority's certification by filing a petition for revocation.  However, regardless
of its grounds, a petition for revocation does not automatically trigger a stay of the
franchising authority's power to regulate basic rates. 

II.    DISCUSSION

       3.     In its petition, Brookridge states that its system serving the City Rhome,
Texas, is subject to effective competition because the system serves fewer than 30 percent of
the homes within its franchise area.  Specifically, Brookridge states that it serves 46
subscribers in an area with 210 "homes" or 22 percent of the total number of "homes".  
Brookridge claims that its "homes" data is based on records provided by the City.  However,
it provides no underlying documentation to support its claim. 

       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 does not support
its effective competition claim with any underlying documentation as the Commission
requires.  Thus, we find that Brookridge has failed to demonstrate that its system serving
the City of Rhome is subject to effective competition.  Accordingly, its petition is denied.

III.   ORDERING CLAUSES

       5.     Accordingly, IT IS FURTHER ORDERED that the petition for revocation
filed by Brookshire Cable Special Purpose Partnership II, parent company of Brookshire
Cable TV, L.P., challenging the certification of the City of Rhome, Texas, to regulate its
basic cable service IS DENIED.

       6.     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