$/ FOR FCC RECORD ONLY /$

$// MO&O, Cable Act of 1992, DA 95-84//$
$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$


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

In the Matter of:    )              DA 95-84              
              )      
LAKE CABLEVISION, INC.              )      
                                    )      
Petition for Revocation             )
              )      
of the Certification of             )
Gwinnett County, Georgia,           )
to Regulate Basic Cable Service Rates      )
(GA0673)      )

                       MEMORANDUM OPINION AND ORDER

Adopted:  January 19, 1995           Released:  January 20, 1995  

By the Chief, Cable Services Bureau:
                                     
I.     INTRODUCTION

       1.     On January 28, 1994, Lake Cablevision Inc. ("Lake") filed a petition for
revocation challenging the certification of Gwinnett County, Georgia ("the County"),
Georgia, to regulate rates for basic cable service and associated equipment.  In addition,
Lake submitted clarifying information in response to a Bureau request.  The City filed a
response to Lake's petition in which the City indicated that it does not oppose Lake'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.  Rate regulation is automatically stayed pending review of a timely-filed petition
for reconsideration alleging the presence of effective competition.  After the 30-day deadline
for filing petitions for reconsideration has elapsed, cable operators may challenge the
franchising authority's certification by filing a petition for revocation.  However, regardless
of its grounds, a petition for revocation does not automatically trigger a stay of the
franchising authority's power to regulate basic rates. 

II.    DISCUSSION

       3.     Lake argues that its system serving the unincorporated areas of Gwinnett
County, its franchise area, is subject to effective competition because the system serves fewer
than 30 percent of the households within its franchise area.  Lake states that its franchise
area has approximately 100,557 households (that is, occupied housing units) and it
"currently serves 3,543 of those households which represents about 3.5 percent of the
households in the franchise area."  As support, Lake submits a statement explaining that it
calculated the number of households in its franchise area by taking the total number of
households in Gwinnett County (126,971) and deducting the total number of households for
the incorporated areas of the County.  This yielded a total of 100,557 households.  In
addition, Lake submits a declaration under penalty of perjury from the Vice-President of the
corporation who verifies that the cable system had 3,543 subscribers in the unincorporated
areas of Gwinnett County as of January 28, 1994.
       
       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, exists in the franchise
area.  Lake has met this burden.  Lake appropriately relied on data reflecting the number of
households as required by our rules.  Relying on this data, Lake has submitted sufficient
evidence demonstrating that its cable system serving the unincorporated areas of Gwinnett
County, its franchise area, serves 3,543 of the 100,557 households, or 3.5 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
Lake Cablevision, Inc. challenging the certification of Gwinnett County, Georgia, to regulate
its basic cable service IS GRANTED.       6.     IT IS FURTHER ORDERED that the certification granted to Gwinnett
County, Georgia to regulate Lake Cablevision, Inc., 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