$/ FOR FCC RECORD ONLY /$

$// MO&O, Cable Act of 1992, DA 95-97//$
$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$

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

In the Matter of:    )              DA 95-97              
              )
CAROLINA CABLE PARTNERS             )
              )      
Petition for Revocation             )
              )
of the Certification of             )
Moore County, North Carolina,       )
to Regulate Basic Cable Service Rates      )
(NC0792)                                   )       

                       MEMORANDUM OPINION AND ORDER

Adopted:  January 20, 1995          Released:  January 23, 1995  

By the Chief, Cable Services Bureau:


I.     INTRODUCTION

       1.  On December 20, 1993, Carolina Cable Partners ("Carolina") submitted a 
petition challenging the certification of Moore County, North Carolina to regulate the
system's rates for basic cable service and associated equipment.  In addition, Carolina filed
clarifying information in response to Bureau requests.  Moore County 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 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.  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.   Carolina argues that its cable system is subject to effective competition because it
serves fewer than 30 percent of the households in the unincorporated areas of Moore County,
its franchise area.  Carolina Cable's pleadings indicate that it serves 438 subscribers in the
unincorporated areas of Moore County which areas have 14,043 households.  This yields a
penetration level of 3.1 percent.  As supporting documentation, Carolina Cable submits a
copy of the 1990 Census Summary File Tape which indicates that there are a total of 23,827
households (i.e., occupied housing units) in Moore County.  In addition, Carolina Cable
submits a letter from the Director of the Moore County Planning and Community
Development, which states that there are a total of 14,043 households in the unincorporated
areas of Moore County.  Carolina Cable also submits a subscriber report which indicates that
it currently has 438 subscribers.  Finally, Carolina Cable submits a copy of its franchise
agreement which indicates that Carolina Cable is authorized to serve the unincorporated areas
of Moore County, its franchise area.  
     
     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.  Carolina has met this burden.  Carolina appropriately relied on data
reflecting the number of households as required by our rules.  Relying on this data,
Carolina has submitted sufficient evidence demonstrating that its cable system serving the 
unincorporated areas of Moore County, its franchise area, serves 438 of the 14,043
households, or 3.1 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 revocation filed by
Carolina Cable Partners, challenging the certification of Moore County, North Carolina to
regulate its basic cable service IS GRANTED.

     6.   IT IS FURTHER ORDERED that the certification granted to Moore County,
North Carolina to regulate Carolina Cable Partners, 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