$/ FOR FCC RECORD ONLY /$
$// MO&O, Cable Act of 1992, DA 94-1542//$
$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$

                                Before the
                     FEDERAL COMMUNICATIONS COMMISSION           DA 94-1542
                          Washington, D.C. 20554

In the Matter of:                    )
                                     )
TWIN COUNTY TRANS VIDEO, INC.        )
   d/b/a TWIN COUNTY CABLE              )
                                    )
Petition for Reconsideration         )
                                     )
of Certification of                  )
Township of Salisbury, PA            )
to Regulate Basic Cable Service Rates)
(PA0570)                                )
                                     
                    
MEMORANDUM OPINION AND ORDER


Adopted:  December 19, 1994             Released:  December 23, 1994

By the Chief, Cable Services Bureau:

I.   INTRODUCTION

     1.   On December 13, 1993, Twin County Trans Video, Inc. d/b/a Twin County
Cable ("Twin County") filed a timely Petition for Reconsideration challenging the
certification of the Township of Salisbury, Pennsylvania ("Township") to regulate rates for
basic cable service and associated equipment.  On August 19, 1994, Twin County submitted
a supplemental pleading in response to the Commission's July 29, 1994 Order.  The
Township did not file an opposition to Twin County'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 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.  Rate regulation is automatically stayed pending review of a timely-filed petition
for reconsideration alleging the presence of effective competition.

II.  DISCUSSION     

Petitioner's Contentions

     3.   Twin County alleges that it meets two of the three alternative tests for
demonstrating the presence of effective competition in the franchise area.  First, Twin
County argues that its cable system serving Salisbury Township, its franchise area, serves
fewer than 30 percent of the households in the franchise area.  Alternatively, Twin County
argues that it meets the competitive provider test for effective competition set forth in the
1992 Cable Act.  

     4.   With respect to the low penetration test, Twin County argues that it serves
1,311 of the 4,836 households (that is, occupied housing units), or 27 percent of the total
number of households in its franchise area.  As supporting documentation, Twin County
provides 1990 Census data which shows that there are 4,836 households in Salisbury.  Twin
County also submits a computer print-out with sufficient subscriber information to support its
claim that it serves 1,311 subscribers in the franchise area. 

Disposition of Twin County's Effective Competition Claims

     5.   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 presented, we find that Twin County has met this
burden.  Twin County has appropriately relied on data reflecting the number of households
as required by our rules.  Relying on this data, Twin County has submitted sufficient
evidence demonstrating that its cable system serves fewer than 30 percent of the households
in its franchise area.  Thus, we find that Twin County's system serving Salisbury Township
is subject to effective competition under the low penetration test.

III. ORDERING CLAUSES

     6.   Accordingly, IT IS ORDERED that the Petition for Reconsideration filed by
Twin County Trans Video, Inc. d/b/a Twin County Cable challenging the Certification of the
Township of Salisbury, Pennsylvania IS GRANTED.

     7.   IT IS FURTHER ORDERED that the certification of the Township of
Salisbury, Pennsylvania to regulate the basic cable rates of Twin County Trans Video, Inc.
d/b/a Twin County Cable IS RESCINDED.
 
     8.   This action is taken pursuant to delegated authority under Section 0.321 of the
Commission's Rules. 

                    FEDERAL COMMUNICATIONS COMMISSION




                    Meredith J. Jones
                    Chief, Cable Services Bureau