### Question
How does Franchising and Regulation define effective competition?


### Answer
Under *47 U.S.C. § 543*, **effective competition** is defined as:

> 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 4-RADIO ACT OF 1927 > SUBCHAPTER V&ndash;A-CABLE COMMUNICATIONS > Part III-Franchising and Regulation**

