$/ FOR FCC RECORD ONLY /$
$// MO&O, Cable Act of 1992, DA 94-1522//$
$/ 300.623 Regulation of Rates /$
$/ 1.106 Petitions for Reconsideration /$
$/ 76.906 Presumption of no effective competition /$
$/ 76.910 Franchising authority certification /$
$/ 76.911 Petition for reconsideration of certification /$
                                Before the
                     FEDERAL COMMUNICATIONS COMMISSION
                          Washington, D.C.  20554
In the Matter of:    )              DA 94-1522
              )
INSIGHT COMMUNICATIONS COMPANY      )
OF NEW YORK INC.     )
              )
Petition for Reconsideration        )
              )
of the Certification of             )
Isle of Wight County, Virginia,     )
to Regulate Basic Cable Service Rates      )
(VA0380)      )
                       MEMORANDUM OPINION AND ORDER
Adopted:  December 19, 1994         Released:  December 19, 1994
By the Chief, Cable Services Bureau:
I.     INTRODUCTION
       1.     On November 29, 1993, Insight Communications Company of New York
("Insight") filed a timely petition for reconsideration challenging the certification of Isle of
Wight County, Virginia ("Wight") to regulate rates for basic cable service and associated
equipment.   On August 19, 1994, Insight filed a supplement to its original petition,
pursuant to a recent Commission Order.  Wight did not file an opposition to Insight'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 which 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 franchise authority
has actual knowledge to the contrary.  Such 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.  Regulation of rates is automatically stayed pending review of a timely filed
petition for reconsideration alleging effective competition.
II.    DISCUSSION
       3.     Insight states that its system serving unincorporated Isle of Wight County, its
franchise area, is subject to effective competition because the system serves fewer than 30
percent of the households within its franchise area.  Specifically, Insight states that it serves
1,994  subscribers in an area with 7,021 households (that is, occupied housing units) in the
unincorporated areas of Wight, or 28.4 percent of the number of households.  As supporting
documentation, Insight submits a copy of a household trend report prepared by the National
Planning Data Corporation which provides a 1992 estimate of 7,021 households in the
unincorporated areas of Isle of Wight.  In addition, Insight submits a computer print-out
with sufficient information to demonstrate that it serves 1,994 subscribers as of October 26,
1993.  Insight's supplement also contains 1990 Census household data.
        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, exists in the franchise
area.  We find that Insight has met this burden.  Insight appropriately relied on data
reflecting the number of households as required by our rules.   Relying on this data, Insight
has submitted sufficient evidence demonstrating that its cable system serving Isle of Wight
County, its franchise area, serves 1,994 of the 7,021 households, or 28.4 percent of the
households, within the franchise area.  Thus, we find Insight's system serving unincorporated
Isle of Wight County is subject to effective competition.  Accordingly, its petition is granted.
III.   ORDERING CLAUSES
       5.     Accordingly, IT IS ORDERED that the petition for reconsideration filed by
Insight Communications Company challenging the certification of Isle of Wight County,
Virginia, to regulate its basic cable service is GRANTED.
       6      IT IS FURTHER ORDERED that the certification granted to Isle of Wight
County, Virginia, to regulate Insight Communications Company's basic cable rates IS
RESCINDED.
       7.     This action is being taken pursuant to delegated authority under Section 0.321
of the Commission's Rules, 47 C.F.R.  0.321.
              FEDERAL COMMUNICATIONS COMMISSION
                          Meredith J. Jones
                                 Chief, Cable Services Bureau