FOR FCC RECORD ONLY 
$// MO&O, Cable Act of 1992, DA 94-1521//$
$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$
                                    
                                    
                               Before the
                    FEDERAL COMMUNICATIONS COMMISSION
                         Washington, D.C.  20554


In the Matter of:                       )    DA 94-1521
                                   )
CVI OF ALABAMA                )                           
dba Cablevision Industries                   )              
                                   )
Petition for Revocation                 )
                                   )
of the Certification of                 )
Dothan, Alabama (AL024                            )    
to Regulate Basic Cable Service Rates        )


                       MEMORANDUM OPINION AND ORDER

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

By the Chief, Cable Services Bureau:

I.   INTRODUCTION

     1.   On March 10, 1994, CVI of Alabama, Inc. ("CVI") filed a petition for
revocation challenging the certification of the City of Dothan, Alabama ("Dothan") to
regulate rates for basic cable service and associated equipment.  In addition, in response to a
Bureau request, CVI filed a supplement clarifying information filed in its petition.  Dothan
did not file an opposition to CVI'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.  Once the 30-day period
for filing petitions for reconsideration has elapsed, cable operators may challenge a
franchising authority's certification by filing a petition for revocation.  Regardless of its
grounds, however, a petition for revocation does not automatically trigger a stay of the
franchising authority's power to regulate basic rates.

II.  DISCUSSION

     3.   CVI argues that its cable system is subject to effective competition because it
serves fewer than 30 percent of the households in Dothan, its franchise area.  Specifically,
CVI claims that it serves only 4,729 of the 20,595 households (that is, occupied housing
units) in Dothan, or 23 percent of the total number of households.  As supporting
documentation, CVI provides 1990 Census data which shows that there are 20,595
households in the City of Dothan.  CVI also submits a computer print-out with sufficient
subscriber information to support its claim that it serves 4,729 subscribers 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.  CVI has met that burden.  Specifically, CVI appropriately relied on data
reflecting the number of households as required by our rules.  Relying on this data, CVI
has submitted sufficient evidence demonstrating that its cable system serving the City of
Dothan, its franchise area, serves 4,729 of the 20,595 households, or 23 percent of the
households.  Thus, we find CVI's system serving the City of Dothan is subject to effective
competition.  Accordingly, its petition is granted.



III. ORDERING CLAUSES

     
     5.   Accordingly, IT IS ORDERED that the petition for revocation filed by CVI
of Alabama challenging the certification of the City of Dothan to regulate basic cable rates IS
GRANTED.

     

     6.   IT IS FURTHER ORDERED that the certification of the City of Dothan to
regulate CVI's 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