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



In the Matter of:

Constel Communications, L.P.

Petition for Determination of Effective 
Competition in Pasco County, Florida
(CUID Nos. FL1175, FL1243) 
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  CSR-5592-E 



                  MEMORANDUM OPINION AND ORDER

      Adopted:  February 2, 2001                             Released:  February 8, 2001

By the Deputy Chief, Cable Services Bureau:

     I.   INTRODUCTION
1.     Constel Communications, L.P. ("Constel") has filed a petition, pursuant to Section 623(a)(1)
of the Communications Act of 1934, as amended, ("Communications Act") and Sections 76.7(a)(1) and
76.905(b)(1) of the Commission's rules, seeking a determination of effective competition regarding
unincorporated areas of Pasco County, Florida (the "Community Units").  Constel argues that its cable
systems are subject to effective competition for all purposes, including but not limited to, exemption from
the cable/SMATV cross-ownership prohibition as set forth in Section 613(a)(3) of the Communications
Act and Section 76.501(f) of the Commission's rules.  Constel claims that there is  effective competition in
the Pasco County Community Units because fewer than thirty percent of the households in the Community
Units subscribe to the cable services of Constel's cable systems serving the Community Units.  No
opposition to the petition was filed.
     II.  Background
3.     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 as defined by Section 76.905 of the Commission's rules, is present within the relevant
franchise area.  Section 623(1)(1)(A) of the Communications Act provides that a cable operator is subject
to low penetration effective competition if "fewer than 30 percent of the households in the franchise area
subscribe to the cable service of a cable system."  The low penetration effective competition test requires
cable operators to prove the existence of effective competition using the most recent household and
subscriber data for the authorized area in the franchise.  With respect to household data, the Commission
has stated that cable operators may rely upon data from the 1990 Census and, if they so choose, may
submit more recent household data. 
     IV.  DISCUSSION
5.     Constel submitted evidence regarding household and subscriber data that shows that its cable
systems serve less than 30 percent of households in the Community Units at issue.  Constel provided
occupied household data based on 1990 Census data from the unincorporated portions of Pasco County,
which it then used to calculate subscriber-to-occupied household penetration ratios.  Constel provided data
showing that it had a total of 774 subscribers in Community Unit FL1175 where there were 108,384
occupied households, thus yielding a penetration ratio of 0.7%.  Constel also provided data showing that it
had a total of 29 subscribers in Community Unit FL1243 where there were 108,384 occupied households,
thus yielding a penetration ratio of 0.03%.  Based on this record, we conclude that Constel has
demonstrated that its cable systems meet the requirements of low penetration effective competition under
our rules and we, therefore, grant its petition.


     VI.  ORDering Clauses
7.      Accordingly, IT IS ORDERED that the petition for a determination of effective competition
filed by Constel Communications, L.P. IS GRANTED.
8.     This action is taken pursuant to authority delegated under Section 0.321 of the Commission's
rules.
                         FEDERAL COMMUNICATIONS COMMISSION

                         William H. Johnson
                         Deputy Chief, Cable Services Bureau