$/ FOR FCC RECORD ONLY /$

$// MO&O, Cable Act of 1992, DA 95-44//$
$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$
              
              Before the
                     FEDERAL COMMUNICATIONS COMMISSION
                          Washington, D.C.  20554

In the Matter of:    )              DA 95-44       
              )
INSIGHT COMMUNICATIONS COMPANY      )  
OF NEW YORK, INC.    )
              )
Petition for Reconsideration        )
              )
of the Certification of             )
Shelby County, Indiana,             )      
to Regulate Basic Cable Service Rates      )
(IN0715)      )

                       MEMORANDUM OPINION AND ORDER

Adopted:  January 12, 1995           Released:  January 12, 1995

By the Chief, Cable Services Bureau:

I.     INTRODUCTION  

       1.     On November 19, 1993, Insight Communications Company of New York
("Insight") filed a timely petition for reconsideration challenging the certification of Shelby
County, Indiana, ("the County") to regulate rates for basic cable service and associated
equipment.  On August 18, 1994, Insight filed a supplement to its original petition, pursuant
to a recent Commission Order.  The County 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 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 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.    Insight argues that its system serving the unincorporated areas of Shelby
County is subject to effective competition because the system serves fewer than 30 percent of
the households within its franchise area.  Insight claims that it serves 103 of the 8,114
households (that is, occupied housing units) in its franchise area, or 1.27 percent of the total
number of households.  As supporting documentation, Insight submits a copy of household
data from the 1990 Census which indicates that there are a total of 14,761 households in
Shelby County.  To calculate the number of households in the unincorporated areas of Shelby
County, Insight subtracted the number of households from the incorporated areas of
Shelbyville (6,133), Morristown (359), and St. Paul (155).  This yielded a total of 8,114
households in the franchise area.  In addition, Insight provides a computer printout as of
November 13, 1993, which indicates that it serves 283 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 76.905 of the Commission's Rules, is present within its
franchise area.  Insight has met this burden.  Specifically, Insight appropriately relied on
data reflecting the number of households as required by our rules.  Relying on this data, 
Insight has submitted sufficient evidence demonstrating that its cable system serving the
unincorporated areas of Shelby County serves 283 of the 8,114 households, or 1.27 percent
of the households within its franchise area.  Accordingly, its petition is granted.

III.          ORDERING CLAUSES

       5.     Accordingly, IT IS ORDERED that the petition for reconsideration filed by
Insight Communications Company challenging the certification of Shelby County, Indiana to
regulate its basic cable service IS GRANTED.
       6.     IT IS FURTHER ORDERED that the certification granted to Shelby County,
Indiana to regulate Insight Communications Company's basic cable rates IS RESCINDED.

       7.     This action is being 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