FOR RECORD ONLY $//Consolidated MO&O, 11 Cable Operators, DA 95-106//$ $/76.981 Negative option billing/$ $/A la carte orders/$ Before the FEDERAL COMMUNICATIONS COMMISSION DA 95-106 Washington, D.C. 20554 In the Matter of: ) ) Letters of Inquiry on Negative ) LOI-93-1; LOI-93-3; LOI-93-13; Option Billing ) LOI-93-15; LOI-93-16; LOI-93-17; ) LOI-93-19; LOI-93-23; LOI-93-24; ) LOI-94-2; LOI-94-5 CONSOLIDATED MEMORANDUM OPINION AND ORDER Adopted: January 24, 1995 Released: January 25, 1995 By the Chief, Cable Services Bureau: 1. The Commission issued Letters of Inquiry ("LOIs") to the following operators requesting that they provide information concerning, among other things, compliance with the Communications Act's prohibition on negative option billing: C-TEC Cable Systems, City of McBain and Zeeland Charter Township, MI (LOI-93-1); Comcast Cablevision, Howard County, MD (LOI-93-3); US Cable, Lake Forest and Lake Bluff, IL (LOI-93-13); Multivision Cable TV, Prince Georges County, MD (LOI-93-15); Time Warner Cable, Everett, Somerville and Winthrop, MA (LOI-93-16); Century Southwest Cable TV, Beverly Hills and Los Angeles, CA (LOI-93-17); Comcast Cablevision, Mount Clemens, MI (LOI-93-19); Nashoba Cable Services, Danvers, MA (LOI-93-23); Vision Cable of North Carolina, Charlotte, NC (LOI-93-24); Falcon Cable TV, Kitty Hawk, NC (LOI-94-2); and Warner Cable, Harrisonburg, VA (LOI-94-5) (collectively, the Operators). 2. On or about September 1, 1993, the effective date of the Commission's rate regulation rules, nine of these Operators restructured their channel offerings so that certain channels that were previously offered on basic and cable programming services tiers were offered in a la carte packages. Similarly, two of these Operators restructured their channel offerings by splitting an existing cable programming services tier into two tiers. In addition, four of these Operators unbundled their programming service rates from equipment charges to create a separate charge for wire maintenance service. 3. Based on the analysis set forth in our previous orders on negative option billing, we conclude that the conduct of these Operators, during the time period addressed by the LOIs, with regard to automatically subscribing their customers to restructured or unbundled programming and equipment offerings did not violate the negative option billing provisions of federal law. 4. Accordingly, IT IS CONCLUDED that C-TEC Cable Systems, City of McBain and Zeeland Charter Township, MI (LOI-93-1); Comcast Cablevision, Howard County, MD (LOI-93-3); US Cable, Lake Forest and Lake Bluff, IL (LOI-93-13); Multivision Cable TV, Prince Georges County, MD (LOI-93-15); Time Warner Cable, Everett, Somerville and Winthrop, MA (LOI-93-16); Century Southwest Cable TV, Beverly Hills and Los Angeles, CA (LOI-93-17); Comcast Cablevision, Mount Clemens, MI (LOI-93-19); Nashoba Cable Services, Danvers, MA (LOI-93-23); Vision Cable of North Carolina, Charlotte, NC (LOI-93- 24); Falcon Cable TV, Kitty Hawk, NC (LOI-94-2); and Warner Cable, Harrisonburg, VA (LOI-94-5), through the conduct described above, have not violated Section 3(f) of the 1992 Cable Act, 47 U.S.C. 543(f), or Section 76.981 of the Commission's rules. 47 C.F.R.  76.981. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau