$/ FOR FCC RECORD ONLY /$ $// MO&O, Cable Act of 1992, DA 94-1523//$ $/ 300.623 Regulation of Rates /$ $/ 1.106 Petitions for Reconsideration /$ $/ 76.906 Presumption of no effective competition /$ $/ 76.910 Franchising authority certification /$ $/ 76.911 Petition for reconsideration of certification /$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of: ) DA 94-1523 ) CABLE TV OF GEORGIA LIMITED ) PARTNERSHIP ) ) Petition for Reconsideration ) ) of the Certification of ) Lumpkin County, Georgia, ) to Regulate Basic Cable Service Rates ) (GA0603) ) MEMORANDUM OPINION AND ORDER Adopted: December 19, 1994 Released: December 19, 1994 By the Chief, Cable Services Bureau: I. INTRODUCTION 1. On November 1, 1993, Cable TV of Georgia Limited, ("Cable TV of Georgia") filed a timely petition for reconsideration challenging the certification of Lumpkin County, Georgia, ("Lumpkin") to regulate rates for basic cable service and associated equipment. Lumpkin did not file an opposition to Cable TV of Georgia'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 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 from 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. Cable TV of Georgia argues that its system serving unincorporated Lumpkin County (excluding the incorporated municipality of Dahlonega), its franchise area, is subject to effective competition because the system serves fewer than 30 percent of the households within the franchise area. Cable TV of Georgia states that it serves 1,043 subscribers of the 4,839 "households" in the franchise area or 21.55 percent of the total number of "households" in the franchise area. As supporting documentation, Cable TV of Georgia submits a copy of the Bureau of the Census, 1990 Census of Population and Housing Report, CH-1-12, for Lumpkin County and the municipality of Dahlonega. In addition, Cable TV of Georgia provides a "Weekly Subscriber Activity Report" as of October 26, 1993, which indicates that it serves 1,043 subscribers. 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 96.905 of the Commission's rules, is present within the franchise area. Based on all of the evidence presented, we find that Cable TV of Georgia has met this burden. 5. Initially, we note that Cable TV of Georgia based its arguments on incorrect housing data. Cable TV of Georgia's bases its effective competition on "housing units" (occupied and vacant) data. Our rules, however, require the use of data reflecting the number of "households" (i.e., occupied housing units) in the franchise area. See Third Order on Reconsideration, MM Docket Nos. 92-266 and 92-262, 9 FCC Rcd 4316, 4324 (1994) ("Third Recon. Order"). Nonetheless, Cable TV of Georgia's supporting documentation includes 1990 occupied housing unit Census data. By subtracting the number of occupied housing units for the City of Dahlonega from the total number of housing units for Lumpkin County, it appears that there are 4,199 occupied housing units (or households) in the franchise area. Thus, it appears that Cable TV of Georgia has a penetration of level of 24.8%. Accordingly, its petition is granted. III. ORDERING CLAUSES 5. Accordingly, IT IS ORDERED that the petition for reconsideration filed by Cable TV of Georgia Limited Partnership, challenging the certification of Lumpkin County, Georgia, to regulate its basic cable service IS GRANTED. 6. IT IS FURTHER ORDERED that the certification granted to Lumpkin County, Georgia, to regulate Cable TV of Georgia Limited Partnership's basic cable rates IS RESCINDED. 7. This action is taken pursuant to delegated authority, Section 0.321 of the Commission's Rules, 47 CFR  0.321. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau