$/ FOR FCC RECORD ONLY /$ $// MO&O, Cable Act of 1992, DA 95-54//$ $/ 300.623 Regulation of Rates /$ $/ 1.106 Petitions for Reconsideration /$ $/ 76.906 Presumption of no effective competition /$ $/ 76.910 Franchising authority certification /$ $/ 76.911 Petition for reconsideration of certification /$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of: ) DA 95-54 ) LARIBAY CABLEVISION OF AURORA, ) COLORADO ) ) Petition for Reconsideration ) ) of the Certification of ) Avoyelles Parish, Louisiana, ) to Regulate Basic Cable Service Rates ) (LA0398) ) MEMORANDUM OPINION AND ORDER Adopted: January 17, 1995 Released: January 18, 1995 By the Chief, Cable Services Bureau: I. INTRODUCTION 1. On December 3, 1993, Laribay Cablevision of Aurora, Colorado, ("Laribay") filed a timely petition for reconsideration challenging the certification of Avoyelles Parish, Louisiana, ("the Parish") to regulate rates for basic cable service and associated equipment. On August 19, 1994, Laribay filed a supplement to its original petition, pursuant to a recent Commission Order. The Parish did not file an opposition. 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 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. 3. Initially, we note that the confines of Laribay's franchise area are not clear. In one paragraph of its petition, Laribay states that it "serves Avoyelles Parish." In another paragraph, it states that it "serves a portion of the rural area of the Parish." In any event, Laribay argues that its system is subject to effective competition because the system serves fewer than 30 percent of the households within its franchise area. Laribay claims that it serves only 73 of 7,164 "households" in the franchise area, or no more than one percent of the total number of households. As supporting documentation, Laribay submits a copy of a household trend report prepared by Kisatchie-Delta Regional Planning and Development District, Inc. which provides a 1990 estimate of 7,164 "households." According to Laribay's documentation, this appears to represent the total number of households in rural Avoyelles Parish. In addition, Laribay provides a computer printout as of November 25, 1993, which indicates that it serves 73 subscribers. Laribay acknowledges that this number does not include free subscribers. However, it provides no information regarding the nature or number of these "free" 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. Laribay has not met this burden. First, Laribay has not sufficiently defined its franchise area. As noted above, Laribay initially states that it "serves Avoyelles Parish." On the same page of the same pleading, Laribay goes on to state that it "serves a portion of rural area of the Parish." Then in its supplement, Laribay offers household data which appears to reflect the total number of households for all of rural Avoyelles Parish. Laribay's inconsistent statements regarding its franchise area make it impossible for us to determine whether it faces effective competition. If, for example, Laribay's franchise area actually consists of only a portion of the rural area of Avoyelles Parish, then its reliance on household data reflecting the entire rural area of Avoyelles Parish is inappropriate. 5. Next, we are concerned about Laribay's apparent failure to indicate the total number of subscribers to its cable service. Laribay claims that it has 73 subscribers, but goes on to state that this number does not include "free" subscribers. Laribay does not state the nature or number of the subscribers. Thus, it is unclear whether these "free" subscribers were appropriately excluded from the subscriber total. As Laribay has not submitted sufficient information to support its effective competition claim, we will deny its petition. Should Laribay choose to submit more specific information in support of its effective competition claim it may do so by filing a petition for revocation pursuant to Section 76.914 of the Commission's rules. III. ORDERING CLAUSES 6. Accordingly, IT IS ORDERED that the petition for reconsideration filed by Laribay Cablevision of Aurora, Colorado, challenging the certification of Avoyelles Parish, Louisiana, to regulate its basic cable service rates IS DENIED. 7. IT IS FURTHER ORDERED that the automatic stay imposed by Section 76.911(c) of the Commission's Rules, as amended, 47 C.F.R.  76.911(c) IS TERMINATED. 8. IT IS FURTHER ORDERED that Laribay Cablevision of Aurora, Colorado, SHALL FILE the required rate justifications on the appropriate forms with Avoyelles Parish, Louisiana, within 30 days from the release date of this Memorandum Opinion and Order or 30 days from the date of receipt of notice from the Avoyelles Parish, Louisiana, that it is regulating rates, whichever is later. 9. 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