$/ FOR FCC RECORD ONLY /$
$// MO&O, Cable Act of 1992, DA 94-1224//$

$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$
                                Before the
                     FEDERAL COMMUNICATIONS COMMISSION           DA 94-1524
                          Washington, D.C.  20554

In the Matter of:    )
              )
INSIGHT COMMUNICATIONS COMPANY      )
OF NEW YORK, INC.    )
              )
Petition for Reconsideration        )
              )
of the Certification of             )
Salt Lake County, UT (UT0157)       )
to Regulate Basic Cable Service Rates      )

                       MEMORANDUM OPINION AND ORDER

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

By the Chief, Cable Services Bureau:

I.     INTRODUCTION

       1.     On December 18, 1993, Insight Communications Commission of New York
("Insight") filed a timely petition for reconsideration challenging the certification of Salt Lake
County, Utah ("Salt Lake") to regulate rates for basic cable service and associated
equipment.  On August 4, 1994, Insight filed a response to a Bureau request for additional
information.  Salt Lake did not file an opposition to Insight'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 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 of 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.     Insight argues that its system serving, the unincorporated areas of Salt Lake
County, its franchise area, is subject to effective competition because the system serves fewer
than 30 percent of the households within its franchise area.  Insight states that it serves 299
of the 96,131 "homes" in its franchise area, or .3 percent of the total number of "homes." 
As supporting documentation, Insight submits a copy of a household trend report prepared by
the National Planning Data Corporation which Insight uses to calculate a 1992 estimate of
96,131 "housing units" in the unincorporated areas of Salt Lake County.  In addition,
Insight provides a computer printout which indicates that it serves 299 subscribers.  Insight's
supplemental pleading also contains 1990 Census and 1992 estimate household (i.e. occupied
housing unit) data.

       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 its
franchise area.  Based on all of the evidence before us, we find that Insight has met this
burden.

       5.     We note that Insight initially based its arguments on incorrect housing data.  In
its initial filing, Insight based its effective competition claim on "housing unit" (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, Insight's supplemental pleading does contain 1990
Census and 1992 estimated households (i.e., occupied housing unit) data, prepared by
National Planning Data Corporation.  According to the 1990 Census data there are 87,743
households (that is, occupied housing units) and according to the 1992 estimates there are
91,135 households (that is, occupied housing units) in the relevant franchise area.  A
comparison of the number of subscribers (299) in relation to either household figure 87,743
(1990 Census data) or 91,135 (1992 estimates) yields a penetration level of .34 percent or
.33 percent, respectively.  In either event, the penetration level is well below 30 percent. 
Thus, we find that Insight's cable system serving the unincorporated areas of Salt Lake
County, Utah is subject to effective competition.  Accordingly, its petition is granted.

III.   ORDERING CLAUSES

       6.     Accordingly, IT IS ORDERED that the petition for reconsideration filed by
Insight Communications, Inc. challenging the certification of Salt Lake County, UT to
regulate Insight's basic cable rates IS GRANTED.

       7.     IT IS FURTHER ORDERED that the certification filed by Salt Lake County,
UT to regulate Insight's basic cable rates IS RESCINDED.

       8.     This action is taken pursuant to delegated authority under Section 0.321 of the
Commission's rules, as amended, 47 C.F.R.  0.321.


              FEDERAL COMMUNICATIONS COMMISSION




              Meredith J. Jones
              Chief, Cable Services Bureau