FOR FCC RECORD ONLY
$// MO&O, Cable Act of 1992, DA 94-1520//$
$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$

                                Before the
                     FEDERAL COMMUNICATIONS COMMISSION           DA 94-1520
                          Washington, D.C. 20554

In the Matter of:                    )
                                     )
C-TEC CABLE SYSTEMS                  )
OF MICHIGAN, INC.                    )
                                     )
Petition for Reconsideration         )
                                     )
of the Certification of              )
Georgetown Charter Township, MI      )
to Regulate Basic Cable Rates        )
(MI1692)                             )

                       MEMORANDUM OPINION AND ORDER

Adopted:  December 19, 1994             Released:  December 20, 1994

By the Chief, Cable Services Bureau:

I.  INTRODUCTION

     1.   On October 28, 1993, C-TEC Cable Systems of Michigan, Inc. ("C-TEC")
filed a timely petition for reconsideration challenging the certification of Georgetown Charter
Township ("Georgetown") to regulate rates for basic cable service and associated equipment. 
C-TEC also filed a supplement to its petition pursuant to a recent Commission order. 
Finally, pursuant to a Bureau request for clarification of previously filed pleadings, C-TEC
filed a response on December 14, 1994.  Georgetown 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.   C-TEC argues that its cable system is subject to effective competition because
it serves fewer than 30 percent of the households within Georgetown Township, its franchise
area.  The supplement to C-TEC's petition shows that the cable system currently serves 11
of the 4,748 households (that is, occupied housing units) in the franchise area, or 0.2
percent of the total number of households.  As supporting documentation, C-TEC provides
1990 Census data which indicates that there are 4,748 occupied housing units in the
franchise area.  C-TEC also submits a computer print-out with sufficient subscriber
information to show that it serves 11 households in the franchise area.

     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.  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 cable system serving Georgetown Charter
Township, Michigan, its franchise area, serves 11 of the 4,748 households, or 0.2 percent of
the households, within its franchise area.  Thus, we find that C-TEC's system serving
Georgetown Charter Township, Michigan 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, Inc., challenging the certification of Georgetown Charter
Township, Michigan to regulate basic cable rates IS GRANTED.

     6.   IT IS FURTHER ORDERED that the certification of Georgetown Charter
Township, Michigan to regulate C-TEC Cable Systems of Michigan, Inc.'s basic cable
service 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