$/  For FCC Record Only/$

$// Order,   Cable Act of 1992, certification, DA 94-1439//$
$/  600.623 Regulation of Rates/$
$/  76.905   Standards for Effective Competition/$
$/  76.906   Presumption of No Effective Competition/$
$/  76.910   Franchising Authority Certification/$
$/  76.911   Petition for Reconsideration/$


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

In the Matter of:    )              DA 94-1439
              )
CABLESOUTH, INC.     )
              )
Petition for Reconsideration        )
of Certification of  )
City of Northport, AL (AL0041)      )
to Regulate Basic Cable Service Rates      )

                       MEMORANDUM OPINION AND ORDER

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

By the Chief, Cable Services Bureau:

I.     INTRODUCTION

       1.     On April 7, 1994,  CableSouth, Inc. ("CableSouth") filed a timely petition for
reconsideration challenging the certification of the City of Northport, AL ("Northport") to 
regulate rates for the basic cable service and associated equipment.  In addition, CableSouth
submitted a supplement to its petition containing supporting documentation pursuant to a
recent Commission order.   Northport did not file an opposition to CableSouth'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 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 of 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.     CableSouth states that its cable system is subject to effective competition
because the system serves fewer than 30 per cent of the households in Northport, its 
franchise area.  CableSouth states that it serves 485 of the 6,519 "homes" in Northport, or
7.4 per cent of the total number of homes.  As support, CableSouth submits a copy from the
"1990 Census of Population and Housing - Summary Tape File 3" which reflects that there
are 6,519 occupied housing units within the City of Northport.  In addition, CableSouth
submits a copy of its "Management Summary Report" which indicates that as of January 24,
1994,  its system served 485 subscribers.  CableSouth also includes a declaration from its
Director of Administrative Services who explains that the number of subscribers is based on
each single family unit account, regardless of additional outlets or the amount of cable
television product purchased.  In addition, CableSouth indicates, the 485 subscribers includes
those receiving free cable service.

       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.   CableSouth has met its burden.  CableSouth appropriately relied on data reflecting
the number of households as required by our rules.  Relying on this data, CableSouth has
submitted evidence demonstrating that its cable system serving Northport, its franchise area,
serves 485 of the 6,519 households, or 7.4 per cent of the households in its franchise area. 
Thus, we find that CableSouth's system serving Northport is subject to effective competition. 
Accordingly, CableSouth's petition is granted. 

III.   ORDERING CLAUSES

       5.     Accordingly, IT IS ORDERED that the petition for reconsideration filed by
CableSouth, Inc. challenging the certification of the City of Northport, AL to regulate
CableSouth's rates IS GRANTED.

       6.     IT IS FURTHER ORDERED that the certification of the City of Northport to
regulate CableSouth, Inc.'s basic cable service 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