FOR FCC RECORD ONLY

$// MO&O, Cable Act of 1992, DA 95-458//$
$/ 300.623 Regulation of rates /$
$/ 1.106 Petition for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideratino of certification /$

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

In the Matter of:                  )              DA 95-458
                              )
TELESAT CABLEVISION, INC.          ) 
                              )
Petition for Reconsideration            )
of Certification of the            )
City of Leesburg, Florida (FL0997) )

                       MEMORANDUM OPINION AND ORDER

Adopted:  March 9, 1995                   Released:  March 10, 1995

By the Chief, Cable Services Bureau:

I.   INTRODUCTION

     1.   On November 16, 1993, Telesat Cablevision, Inc. ("Telesat") filed a timely
Petition for Reconsideration of Certification challenging the certification of the City of
Leesburg, Florida to regulate the system's basic service rates in Leesburg, Florida.  The
City of Leesburg did not file an opposition to Telesat'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 they have actual
knowledge to the contrary.  Certification becomes effective 30 days from the date of filing
unless the Commission finds that the franchising 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 the presence of effective competition.
     
II.  DISCUSSION

     3.    Telesat argues that its system in the City of Leesburg is exempt from
regulation because it is not a cable system as defined under the 1992 Cable Act. 
Specifically, Telesat states that its Leesburg system is considered a satellite master antenna
television system (SMATV) in that it serves a single private multiple unit dwelling known as
Royal Oak Estates, and that it does not make use of any public right-of-ways.  As supporting
documentation, Telesat provides a sworn affidavit from a responsible company official
certifying to the facts in the petition.

     4.   The Communications Act of 1934, as amended, and the Commission's rules
provide that only the rates of "cable systems" that are not subject to effective competition
may be regulated.  The Communications Act of 1934 and the Commission's rules further
provide that "the term "cable system" means a facility, consisting of a set of closed
transmission paths and associated signal generation, reception, and control equipment that is
designed to provide cable service which includes video programming and which is provided
to multiple subscribers within a community."  However, "such term does not include a
facility that serves only subscribers in one or more multiple unit dwellings under common
ownership, control or management, unless such facility or facilities uses any public right-of-
way."    

     5.   Based on the evidence presented, we find that Telesat has submitted sufficient
evidence demonstrating that it is not a cable system as defined by the Communications Act or
the Commission's rules.  As such, it is not subject to rate regulation.  Accordingly, we grant
its petition. 

III. ORDERING CLAUSES

     6.   Accordingly, IT IS ORDERED that the Petition for Reconsideration filed by
Telesat Cablevision, Inc. challenging the certification of the City of Leesburg, FL to regulate
Telesat's rates IS GRANTED.

     7.   IT IS FURTHER ORDERED that the certification of the City of Leesburg to
regulate Telesat Cablevision's basic cable service rates IS RESCINDED.

     8.   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