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D/B/A R)  S-N.E. GWINNETT CABLEVISION R)hppCUID No. GA0276 R) Petition for RevocationR) of the Certification ofR) Gwinnett County, GeorgiaR) to Regulate Basic Cable Service RatesR) in Unincorporated Gwinnett County R)  S - D$2o   D$2o   SX-  MEMORANDUM OPINION AND ORDER TP  S-X` hp x (#%'0*,.8135@8:households in the franchise area; and (2) the number of households subscribing to multichannel video  S -programming other than the largest MVPD exceeds 15 percent of the households in the franchise area._  S-ԍ47 U.S.C. 543(l)(1)(B); 47 C.F.R. 76.905(b)(2)._  S -  S -II.xSUMMARY OF PETITIONER'S ARGUMENTS  SX- ` x4.` ` Rifkin argues that it is subject to effective competition in Unincorporated Gwinnett County  S0- xunder the competing provider test and is, therefore, exempt from rate regulation.9 0 S$- xԍThe 1992 Cable Act and the Commission's rules provide that only the rates of cable systems that are  x{not subject to effective competition may be regulated. Communications Act 623(a)(2), 47 U.S.C. 543(a)(2); 47 C.F.R. 76.905(a). 9 Rifkin contends that  S- xthe Cable Services Bureau's decision in a related case, MediaOne of Georgia, Inc. ("MediaOne"), in which" ,`(`(88+"  xa cable operator serving Unincorporated Gwinnett County was found subject to effective competition,  S- xcompels a finding that Rifkin, too, faces effective competition.W  S@-ԍMediaOne, DA 97550, rel. March 17, 1997.W Rifkin argues that based on the evidence  S- xpresented in MediaOne and the conclusion reached in that case, Rifkin satisfies the competing provider  xtest and its petition for revocation should, therefore, be granted. Rifkin claims that MediaOne and various  x?direct broadcast satellite ("DBS") providers offer comparable programming to at least 50% of the  xhouseholds in Unincorporated Gwinnett County. Rifkin further alleges that it serves more than 15% of the households in Unincorporated Gwinnett County.  S- III.xANALYSIS  Sr- ` x5.` ` In the absence of a demonstration to the contrary, cable systems are presumed not to be  SJ - xsubject to effective competition.?J j ST -ԍ47 C.F.R. 76.906. ? The cable operator bears the burden of rebutting the presumption that  xeffective competition does not exist with evidence that effective competition, as defined by Section 76.905  S - xof the Commission's rules, is present within its franchise area.D  S-ԍ47 C.F.R. 76.911(b)(1). D Rifkin has met this burden by satisfying  S -the competing provider test for effective competition based on evidence presented in the MediaOne case.  S - ` x6.` ` In MediaOne, the Bureau granted the cable operator's petition for revocation, finding that  x<MediaOne, the largest multichannel video programming distributor ("MVPD") in Unincorporated Gwinnett  xCounty, faced effective competition from Rifkin and from direct broadcast satellite ("DBS") and television  S- xreceiveonly earth station ("TVRO") operators under Section 76.905(b)(2) of the Commission's rules.t SX-ԍMediaOne, DA 97550, rel. March 17, 1997; 47 C.F.R.  76.905(b)(2).t  xThe instant case involves the same franchise area of Unincorporated Gwinnett County that was considered  S- xin MediaOne as well the same MVPDs. We agree with Rifkin, therefore, that the household and  S- xLcompeting provider figures that were used in our effective competition analysis in MediaOne are equally  xLapplicable here. The first prong of the competing provider test requires that the franchise area be served  xby at least two unaffiliated MVPDs, each of which offers comparable programming to at least 50% of the  S"- xyhouseholds in the franchise area. In MediaOne, we accepted the petitioner's count of 96,662 households  S- x(i.e., occupied housing units) in Unincorporated Gwinnett County. L S- x=ԍThe United States Census Bureau assigns different meanings to the terms "household" and "housing  xunits." The term "household" is defined by the Census Bureau to include only occupied housing units.  S - x.See Bureau of the Census, U.S. Dept. of Commerce, 1990 Census of Population, CP11B, Appendix B  Sr!- xat B8. "Housing units," on the other hand, refer to both occupied and unoccupied units. In the Third  SL"- xzOrder on Reconsideration, MM Docket Nos. 92266 and 92262, 9 FCC Rcd 4316, 4324 (1994), the  x.Commission adopted the United States Census Bureau's definition of "households" as occupied housing units.  We also determined that MediaOne  xLserved 74,000, or 76.5%, of subscribers in Unincorporated Gwinnett County as of September, 1996 and  xthat DBS and TVRO operators offered service to more than 50% of the households in Unincorporated  xGwinnett County. We further found that these providers satisfy the Commission's program comparability  xcriteria because they offer at least 12 channels of programming, including at least one nonbroadcast"\,`(`(88"  S- xchannel.F Sh-ԍSee 47 C.F.R. 76.905(g).F Applying these findings to the instant case, we determine that Rifkin satisfies the first prong of the competing provider test.  S- ` x7.` ` The second prong of the competing provider test for effective competition requires a  xdemonstration that more than 15% of the households in the franchise area subscribe to multichannel video  S8- xprogramming services from distributors other than the largest MVPD, in this case, MediaOne.( 8j SB- x=ԍThe Commission interpreted the competing provider test to mean that, in determining whether 15%  xof households in the franchise area subscribe to cable services, only those MVPDs that offer service to  S - x at least 50% of the households in the franchise area may be included. Rate Order at 56645665. On  S - xreview, the court in Time Warner Entertainment Co., L.P. et al. v. F.C.C., 56 F.3d 151 (D.C. Cir. 1995)  S - x("Time Warner") held invalid the Commission's interpretation of the competing provider test. Specifically,  xthe court found that the 15% subscribership requirement and the 50% coverage provision may be satisfied  SX - xindependently, using separate groups of competing MVPDs. As a result of the Time Warner decision, the  xsubscribership of all MVPDs, other than the largest MVPD, may be aggregated to satisfy the 15%  xsubscribership requirement, regardless of whether the MVPDs offer service to at least 50% of households in the franchise area.  In  S- x>MediaOne we relied on evidence indicating that Rifkin served 19,915 subscribers, or over 20% of the  x96,662 households, as of September 30, 1996 and that Rifkin offers comparable programming to  xMsubscribers in Unincorporated Gwinnett County. Considering these figures, we conclude that Rifkin satisfies the 15% subscribership requirement of the competing provider test.  SJ - ` x8.` ` We find that the evidence considered by the Bureau in MediaOne demonstrates that  xyRifkin's cable system serving Unincorporated Gwinnett County is subject to effective competition under the competing provider test. Rifkin's petition for revocation is hereby granted.  S -   S -IV.xORDERING CLAUSES  S\- ` x 9.` ` Accordingly, IT IS ORDERED that the petition for revocation filed by Rifkin &  xAssociates, Inc./Cable Equities of Colorado, Ltd., d/b/a N.E. Gwinnett CableVision, challenging the  xcertification of Gwinnett County, Georgia to regulate basic cable service rates in Unincorporated Gwinnett  S-County IS GRANTED. "Z ,`(`(88"  S- ` x 10.` ` IT IS FURTHER ORDERED that the certification of Gwinnett County, Georgia to  xregulate the basic cable service rates of Rifkin & Associates, Inc./Cable Equities of Colorado, Ltd., d/b/a  S-N.E. Gwinnett CableVision, IS REVOKED. x  S`- ` x 11.` ` This action is taken pursuant to delegated authority pursuant to Section 0.321 of the  S8-Commission's Rules.<8 S-ԍ47 C.F.R. 0.321.<  S-x` `  hh FEDERAL COMMUNICATIONS COMMISSION x` `  hhMeredith J. Jones x` `  hhChief, Cable Services Bureau  X -#XU PЗQ9XP#