FOR FCC RECORD ONLY
$//NewChannels Corporation, Syracuse, New York, MO&O, DA-94-1529//$
$/ 76.922 Rates for the basic service tier and cable programming services tier /$
$/benchmark cable rates/$
                                Before the
                     Federal Communications Commission
                             Washington, D.C.

                                                                 DA-94-1529


In the matter of  )
                              )    CUID Nos. NY1029, NY1030, NY1031   
NewChannels Corporation           )                 NYl2l0, NY1369, NY1370,                                                                                
Syracuse, New York                )                                                                                                 NYl6l7 and NYl6l8 
                              )               
Benchmark Filing To Support       )     
Cable Programming Service Price         )





                       Memorandum Opinion and Order

Adopted:  December 19, 1994             Released:  December 20, 1994

By the Chief, Cable Services Bureau:


Introduction

     1.  Here we consider  complaints about the price NewChannels Corporation
("NewChannels") was charging for its cable programming service ("CPS") tier in CUID
Nos. NY1029, NY1030, NY103l, NY 1210, NY1369, NY 1370, NY 1617, NY 1618. 
NewChannels has chosen to attempt to justify its price through a benchmark showing on
FCC Form 393.  This order addresses the reasonableness of NewChannels's price only
through May 14, 1994.  At a later date we will issue a separate order addressing the
reasonableness of the price after that date.

     2.  Under the Cable Television Consumer Protection and Competition Act of 1992,
and our rules implementing it, 47 C.F.R. Part 76, Subpart N, the Commission must review
CPS prices upon the filing of a valid complaint.  The filing of a valid complaint triggers an
obligation on behalf of the cable operator to file a justification of its CPS prices.  Under our
rules, an operator may attempt to justify its prices through either a benchmark showing or a
cost-of-service showing.  In either case, the operator has the burden of demonstrating that its
CPS prices are not unreasonable.

     3.  The Commission's original rate regulations took effect on September 1, 1993. 
The Commission subsequently revised its rate regulations effective May 15, 1994. 
Operators with valid CPS complaints filed against them prior to May 15, 1994 must
demonstrate that their CPS prices were in compliance with the Commission's initial rules
from the time the complaint was filed through May 14, 1994, and that their prices were in
compliance with the revised rules from May 15, 1994 forward.  Operators attempting to
justify their prices for the period prior to May 15, 1994 through a benchmark showing must
complete and file FCC Form 393.  Generally, to justify their prices for the period beginning
May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200
series.

Procedural Matters

     4.  The first CPS complaint was completed and served on NewChannels on January
3, 1994.  The Commission received the complaint on January 6, 1994.

     5.  NewChannels attempted to justify its CPS price through FCC Form 393's filed 
on February 14, 1994 for CUID Nos. NY1029, NY1030, NY1031, NY1210, NY 1369,
NY1617, NY16l8 and on March 4, 1994 for NY1370.  NewChannels amended its
justification  on June 24, 1994 in response to a Cable Services Bureau Order citing common
deficiencies observed in benchmark filings generally, 

Discussion

     6.  NewChannels asserts that its monthly CPS tier price of $11.25 per subscriber is
justified by its benchmark filing because its price is equal to the maximum permitted charge 
of $11.25 as calculated in the filing.  Upon review of NewChannels's Form 393, we have
found no apparent errors that would require a recalculation of NewChannels's maximum
permitted CPS price.

Conclusions

     7.  Upon review of the record herein, we conclude that NewChannels has
demonstrated that $11.25 per month (plus franchise fee) was the maximum reasonable CPS
tier price for the period October 18, 1993 to May 14, 1994.

     8.  Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's
Rules, 47 C.F.R.  0.321, that the complaints against the cable programming service price
charged by NewChannels Corporation, CUID Nos. NY 1029, NY1030, NY1031, NY1210,
NY 1369, NY1370, NY1617, NY16l8, and all other complaints relating to the same price,
ARE DENIED TO THE EXTENT INDICATED HEREIN.

     9.  IT IS FURTHER ORDERED, that the benchmark filing submitted by
NewChannels Corporation with respect to CUID Nos. NY 1029, NY1030, NY1031,
NY1210, NY 1369, NY1370, NY1617, NY16l8 and NY1029, for the period of October 18,
1993 to May 14, 1994, justifies a maximum price of $11.25 per month (plus franchise fee)
for NewChannels, Corporation's cable programming service tier.

                         FEDERAL COMMUNICATIONS COMMISSION




                         Meredith J. Jones
                         Chief, Cable Services Bureau