### Question
How is the "effective competition" defined?


### Answer
The term **effective competition** is defined in *47 U.S.C. § 543* as follows -

> that—


(A) fewer than 30 percent of the households in the franchise area subscribe to the cable service of a cable system

#### Citation:
  - *47 U.S.C. § 543*
  - Heading: **CHAPTER 5-WIRE OR RADIO COMMUNICATION > SUBCHAPTER V&ndash;A-CABLE COMMUNICATIONS > Part III-Franchising and Regulation**

