Before the
                Federal Communications Commission
                     Washington, D.C. 20554  

In the Matter of:               )
                                )
Bradley's Inc.                  )
                                )
Petition for Revocation         )
                                )
of the certification of         )
Fayette County,West Virginia,   )
to Regulate Basic Cable Service )
Rates                           )


                   MEMORANDUM OPINION AND ORDER

     Adopted:  July 19, 1999                           Released:  July 22, 1999  
  
By the Chief, Cable Services Bureau:

I.   INTRODUCTION

     1.   Bradley's Inc. ("Bradley's") filed a Petition for Revocation challenging the certification of
Fayette County, West Virginia, ("the County") to regulate rates for basic cable service and associated
equipment.  Bradley's also requests that the Commission stay rate regulation pending resolution of its
petition.  The County did not file an opposition to Bradley'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 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 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.  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.   Bradley's argues that its cable system is subject to low penetration effective competition
because it serves fewer than 30% of the households in unincorporated Fayette County, West Virginia, its
franchise area.  Specifically, Bradley's asserts that it serves 598 of the 11,506 households (that is, occupied
housing units) or 5.2% of the total number of households.  As supporting documentation, Bradley's
provides 1990 Census data which demonstrates that there are 11,506 households in unincorporated Fayette
County.  Bradley's also submits a computer print-out with sufficient subscriber information to support its
claim that it serves 598 households 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.  Bradley's has met this burden.  Bradley's
appropriately relied on Census data reflecting the number of households as required by our regulations. 
Bradley's has submitted sufficient information demonstrating that its cable system serves 598 of the 11,506
households in Fayette County, its franchise area, or 5.2% of the total number of households.  Therefore, we
find that Bradley's system serving Fayette County is subject to low penetration effective competition.

     5.   Bradley concedes that petitions for revocation pursuant to Section 76.914 of the
Commission's rules do not convey a right to an automatic stay, nevertheless, Bradley's requests a stay
pending Commission review of Bradley's Petition for Revocation.  Bradley's petition presents no evidence
sufficient to waive the requirement in Section 76.914(d) that local franchising authorities may continue to
regulate basic service rates while a petition for revocation is pending before the Commission.  Accordingly,
Bradley's request for stay of rate regulation is denied.

III.      ORDERING CLAUSES
     
     6.   Accordingly, IT IS ORDERED that the petition for revocation filed by Bradley's Inc.
challenging the certification of Fayette County, West Virginia IS GRANTED.

     7.   IT IS FURTHER ORDERED that the certification of Fayette County, West Virginia,  to
regulate Bradley's Inc.'s basic cable service rates IS REVOKED.

     8.   IT IS FURTHER ORDERED that Bradley's Inc.'s request for stay of rate regulation IS
DENIED.   

     9.   This action is taken pursuant to delegated authority pursuant to Section 0.321 of the
Commission's rules. 


                         FEDERAL COMMUNICATIONS COMMISSION



                         Deborah A. Lathen
                         Chief, Cable Services Bureau