$/ FOR FCC RECORD ONLY /$

$// MO&O, Cable Act of 1992, DA 95-42//$
$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$  

Before the 
                        FEDERAL COMMUNICATIONS COMMISSION
Washington, D.C. 20554



In the Matter of:                       )         DA 95-42
                                   )
STAR CABLE ASSOCIATES              )
                                   )
Petition for Revocation                 )
of Certification of                          )
Stokes County, North Carolina      (NC0588)  )
to Regulate Basic Cable Service    (NC0862)  )
Rates                         (NC0867)  )
                         (NC0902)  )


                 MEMORANDUM OPINION AND ORDER
      
Adopted:  January 12, 1995                   Released:  January 12, 1995

By the Chief, Cable Services Bureau:

I.  INTRODUCTION

     1.   On January 24, 1994, Star Cable Associates ("Star Cable") filed a petition
challenging the certification of Stokes County ("the County") to regulate rates for basic cable
service and associated equipment.  The County did not file an opposition to Star Cable'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 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.  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 cable rates.

II.  DISCUSSION

     3.   In its petition, Star Cable states that its system serving portions of Stokes
County is subject to effective competition because it serves fewer than 30 percent of the
households within portions of Stokes County, its franchise area.  Specifically, Star Cable
states that it serves 1,918 of the 7,784 households (that is, occupied housing units) in its
franchise, or 24.6 percent of the total number of households.  As supporting documentation,
Star Cable provides 1990 Census data which indicates that there are a total of 14,123
households in Stokes County.  To calculate the number of households in its franchise area,
Star subtracted the number of households within Danbury town (48), Walnut Cove town
(426), and Yadkin Township (5,865).  Yadkin Township includes both an incorporated area
(containing 1,509 households) and an unincorporated area (containing 4,356 households).
Danbury town and Walnut Cove town, while within the County limits, are separate
incorporated areas that are not part of Star Cable's franchise area.  The unincorporated areas
of Yadkin Township fall within King Communications' franchise area and like the
incorporated area of Yadkin Township are not within Star's franchise area.  As such, the
calculation yielded a total of 7,784 households.  Star Cable also submits a computer print-out
with sufficient subscriber information to support its claim that it serves 1,918 subscribers in
the franchise area.  Finally, Star Cable provides an affidavit by a responsible official
certifying the accuracy of the data included in the petition.

     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 Commissions rules, is present within the
franchise area.  Star Cable has met this burden.  Specifically, Star Cable appropriately
relied on data reflecting the number of households as required by our rules.  Relying on
this data, Star Cable has submitted sufficient evidence demonstrating that its cable system
serving Stokes County, its franchise area, serves 1,918 of the 7,784 households in its
franchise area in Stokes County, or 24.6 percent of the total number of households. Thus, we
find Star Cable's system serving Stokes County 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 Star
Cable Associates challenging the certification Stokes County to regulate basic cable rates IS
GRANTED.

     6.   IT IS FURTHER ORDERED that the certification of Stokes County to
regulate Star Cable Associate's basic cable rates IS RESCINDED.

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

                              
                         FEDERAL COMMUNICATIONS COMMISSION


                         Meredith J. Jones
                         Chief, Cable Services Bureau