NOTICE


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                         NOTICE


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$// MO&O, Cable Act of 1992, DA 96-275//$
$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$
                                     


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

In the Matter of:      )         DA 96-275
      )
Upper Peninsula Communications, Inc.    )
      )    
Petition for Revocation           )
of the Certification of           )
Spalding, Michigan     ) 
to Regulate Basic Cable Service          )          
Rates (MI1133)          )


                       MEMORANDUM OPINION AND ORDER

                 Adopted:  February 29, 1996              Released:  March 11, 1996
  
By the Chief, Cable Services Bureau:

I.    INTRODUCTION

 1.  On October 20, 1995, Upper Peninsula Communications, Inc. ("UPCI") filed a
petition for revocation challenging the certification of Spalding Township, Michigan, (the
"Township") to regulate rates for basic cable service and associated equipment.  The
Township did not file an opposition.  On February 5, 1996, UPCI filed supplemental
information pursuant to a request by Commission staff. 

 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 that 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 franchising
authority has actual knowledge to the contrary.  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.  UPCI argues that its cable system is subject to low penetration effective
competition because it serves fewer than 30 percent of the homes in Spalding, its franchise
area.  Initially, UPCI claimed that it served 28 of 589 households (that is, occupied housing
units) in Spalding, or 4.75 percent of the total number of households.  Pursuant to a
Commission request for supporting documentation, UPCI provided 1990 Census data which
shows that there are 589 households in Spalding Township.  UPCI also submitted a
computer print-out which indicates that UPCI serves 30 subscribers in the 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. 
Based on the evidence, we find that UPCI has met this burden.  UPCI  appropriately relied on
data reflecting the number of households as required by our rules.  UPCI has submitted
sufficient evidence that its cable system serving Spalding, Michigan serves 30 of the 589
households, or 5.1 percent of the households within its franchise area. Thus, we find that
UPCI's system serving the Township of Spalding is subject to low penetration effective
competition.  

III.  ORDERING CLAUSES
 
 5.   Accordingly, IT IS ORDERED that the petition for revocation filed by Upper
Peninsula Communications, Inc. challenging the certification of Spalding Township, Michigan
to regulate its basic cable service rates IS GRANTED.

 6.   IT IS FURTHER ORDERED that the certification granted to Spalding
Township, Michigan to regulate Upper Peninsula Communications, Inc. basic cable rates in
Spalding Township, Michigan IS REVOKED.

 7.   This action is taken pursuant to delegated authority pursuant to 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