$/ For FCC Record Only/$ $// Order, Cable Act of 1992, certification, DA 94-1450//$ $/ 600.623 Regulation of Rates/$ $/ 76.905 Standards for Effective Competition/$ $/ 76.906 Presumption of No Effective Competition/$ $/ 76.910 Franchising Authority Certification/$ $/ 76.911 Petition for Reconsideration/$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of: ) DA 94-1450 ) STAR CABLE ASSOCIATES ) ) Petition for Reconsideration ) ) of the Certification of ) Milton Township, Ohio ) to Regulate Basic Cable Rates ) (OH2069) ) MEMORANDUM OPINION AND ORDER Adopted: December 12, 1994 Released: December 13, 1994 By the Chief, Cable Services Bureau: I. INTRODUCTION 1. On December 8, 1993, Star Cable Associates ("Star Cable") filed a timely petition for reconsideration challenging the certification of Milton Township, Ohio ("Milton Township") to regulate rates for basic cable service and associated equipment. Milton Township did not file an opposition to Star Cable'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. Star Cable argues that its cable system is subject to effective competition because it serves fewer than 30 percent of the households in Milton Township, its franchise area. Star Cable claims that it currently serves only 16 of the 966 households (that is, occupied housing units) in its franchise area, or 1.6 percent of the total number of households. As supporting documentation, Star Cable provides 1990 Census data which shows that there are 966 households in Milton Township. Star Cable also submits a computer print-out with sufficient subscriber information to support its claim that it serves 16 households in the franchise area. Finally, Star Cable provides an affidavit by a responsible official certifying 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. Star Cable has met this burden. Star Cable appropriately relied on data reflecting the number of households as required by our rules. Relying on this data, Star Cable has submitted sufficient evidence demonstrating that its cable system serving Milton Township, its franchise area, serves 16 of the 966 households, or 1.6 percent of the households, within its franchise area. Thus, we find Star Cable's system serving Milton 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 Star Cable Associates challenging the certification of Milton Township, Ohio to regulate basic cable rates IS GRANTED. 6. IT IS FURTHER ORDERED that the certification of Milton Township, Ohio to regulate Star Cable Associates' basic cable rates IS RESCINDED. 7. This action is taken pursuant to delegated authority pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau