FOR FCC RECORD ONLY $// MO&O, Cable Act of 1992, DA 94-1454//$ $/ 300.623 Regulation of rates /$ $/ 1.106 Petitions for Reconsideration /$ $/ 76.906 Presumption of no effective competition /$ $/ 76.910 Franchising authority certification /$ $/ 76.911 Petition for reconsideration of certification /$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of: ) DA 94-1454 ) CMA NORTH CAROLINA CABLE ) ASSOCIATES, LIMITED PARTNERSHIP ) ) Petition for Reconsideration ) ) of Certification of ) Pamlico County, North Carolina ) to regulate basic cable rates ) (NC0645) ) MEMORANDUM OPINION AND ORDER Adopted: December 12, 1994 Released: December 13, 1994 By the Chief, Cable Services Bureau: I. INTRODUCTION 1. On December 17, 1993, CMA North Carolina Cable Associates, Limited Partnership ("CMA") filed a timely petition for reconsideration challenging the certification of Pamlico County, North Carolina ("County") to regulate rates for basic cable service and associated equipment. The County did not file an opposition to CMA'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 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. CMA argues that its cable system is subject to effective competition because the system serves fewer than 30 percent of the households in its franchise area. In its petition, CMA claims that it serves only 988 of the 4,212 "households" in its franchise area; i.e., 23.45 percent of the total number of households "based upon local census information and marketing data." CMA also submits a declaration under penalty of perjury from a responsible company official attesting to the accuracy of the facts alleged. However, CMA's petition does not include sufficient information which clearly demonstrates that CMA has relied on household data as that term is used for purposes of effective competition. For instance, the petition does not include a copy of the relevant tables or pages from the census data or even a citation to the relevant pages or tables within the census, so as to enable us to determine the accuracy of the 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, is present within the franchise area. We find that CMA has failed to meet this burden. CMA did not support its effective competition claim with adequate documentation. Our rules require the use of data reflecting the number of "households" in the franchise area. Although CMA's petition makes an assertion about a particular number, it does not submit sufficient information upon which to determine that its effective competition claim is based on the precise factual information required. Accordingly, CMA's petition is denied. III. ORDERING CLAUSES 5. Accordingly, IT IS ORDERED that the petition for reconsideration filed by CMA North Carolina Cable Associates, Limited Partnership challenging the certification of Pamlico County, North Carolina to regulate CMA's basic service cable 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 CMA North Carolina Cable Associates, Limited Partnership SHALL FILE the required rate justification on the appropriate forms with Pamlico County, NC within thirty days of the release of this Memorandum Opinion and Order or within thirty days of receipt of notice from the franchising authority that it is regulating CMA's rates. 8. This action is taken pursuant to delegated authority under  0.321 of the Commission's rules, 47 C.F.R.  0.321. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau