WPC 2BJ Z Courier#|xw RomanTimes New Roman BoldX@HP LaserJet 4_230_1HPLAS4.PRS 4x  @\oeX@26Fv#|xCourierTimes New RomanHPLAS4SI.PRSx  @\iX@  ЂX` hp x (#%'0*,.8135@8:><q*"xxxxWWxxxWWkkxxxA.SSxSSJJSJS+SSSSS8SSSSSSSSS.xJxJxJxJxJorJiJiJiJiJ8.8.8.8.{SxSxSxSxS{S{S{S{SxSxJ{SxSxSxS{S`SxIxSxIqIqIrSrS{dgIiSiSgIxSxSxSxSxS{S{S8.SSSS8Sz]SSuSg/g CPS prices upon the filing of a valid complaint. The filing of a valid complaint triggers an  Y-obligation on behalf of the cable operator to file a justification of its CPS prices.? Yb-ԍ 47 C.F.R.  76.956.? Under our rules, an operator may attempt to justify its prices through either a benchmark showing or a  Y-costofservice showing.By Y-ԍ 47 C.F.R.  76.956(b).B In either case, the operator has the burden of demonstrating that its  Y-CPS prices are not unreasonable.2* Y -ԍ Id.2  Yv-x3. The Commission's original rate regulations took effect on September 1, 1993. v Y -ԍ Order in MM Docket No. 92266, Implementation of Sections of the Cable Television  Y -Consumer Protection and Competition Act of 1992: Rate Regulation, FCC 93372, 58 Fed. Reg. 41042 (Aug. 2, 1993).   Y_-The Commission subsequently revised its rate regulations effective May 15, 1994.E_d  Yt-ԍ See Second Order on Reconsideration, Fourth Report and Order, and Fifth Notice of  Y_-Proposed Rulemaking, MM Docket No. 92266, FCC 9438, 9 FCC Rcd 4119 (1994)  YJ-("Second Order on Reconsideration"); 47 C.F.R.  76.922(b).E 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  Y -compliance with the revised rules from May 15, 1994 forward.v  Y-ԍ See Second Order on Reconsideration, 9 FCC Rcd at 4190, paras. 150152.v Operators attempting to justify their prices for the period prior to May 15, 1994 through a benchmark showing must  Y -complete and file FCC Form 393.2  Y&-ԍ Id.2 Generally, to justify their prices for the period beginning May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200  Y -series.  S Y-ԍ 47 C.F.R.  76.922(b)(6); see also Second Order on Reconsideration, 9 FCC Rcd at 4189 n.195.  Xy-  Background   YK-x4. The Cable Services Bureau has addressed the regulatory status of packages of channels offered on an a la carte basis in several orders resolving letters of inquiry ("LOIs") directed to cable operators. Of particular relevance to this case, the Cable Services Bureau has released orders resolving LOIs regarding Century Cable TV's ("Century") systems in" 0*((" Huntington, West Virginia; Morgantown, West Virginia; Muncie, Indiana; Owensboro,  Y-Kentucky; Yuma, Arizona; Brunswick, Georgia; and San Juan, Puerto Rico. C Yb-ԍ See Century Cable TV, Huntington, West Virginia, LOI9349, DA 941314, 9 FCC  YM-Rcd 7337 (Cab. Serv. Bur. 1994); Century Cable TV, Morgantown, West Virginia, LOI93 Y8-34, DA 941358, 10 FCC Rcd 115 (Cab. Serv. Bur. 1994); Century Cable TV, Muncie,  Y#-Indiana, LOI9318, DA 941354, 10 FCC Rcd 99 (Cab. Serv. Bur. 1994); Century Cable  Y-TV, Owensboro, Kentucky, LOI9345, DA 941361, 10 FCC Rcd 127 (Cab. Serv. Bur.  Y-1994); Century Cable TV, Yuma, Arizona, LOI9339, DA 941360, 10 FCC Rcd 123 (Cab.  Y-Serv. Bur. 1994); Century Cable TV, Brunswick, Georgia , LOI9344, LOI944, DA 94 Y -1426 (Cab. Serv. Bur., released Dec. 12, 1994); Cable TV of Greater San Juan, San Juan,  Y -Puerto Rico, LOI9338, DA 941425 (Cab. Serv. Bur., released Dec. 12, 1994). Relying on  Y-the Commission's Going Forward Order,m   Ym -ԍ See Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992: Sixth Order on Reconsideration, Fifth Report and Order, and  YA-Seventh Notice of Proposed Rulemaking, MM Docket Nos. 92266 and 93215, FCC 94286,  51 (adopted November 10, 1994).m the Bureau's orders addressed the restructured service offerings implemented in these communities beginning September 1, 1993, in which Century eliminated its CPS tiers and offered instead only a basic service tier and a few a la carte channels. In each of these orders, the Bureau found that Century's restructured service offerings did not constitute a clear evasion of our rate rules. Specifically, the Bureau found that Century did not avoid rate regulation of most of its previous CPS channels because it moved those channels into a rateregulated basic tier. With regard to the other channels, the orders permit Century to treat its a la carte packages as new product tiers that may be priced  Y -at market levels under the Going Forward Order.  Y-x5. Since the LOI orders found that the elimination of Century's CPS tiers did not constitute a clear evasion of rate regulation and those channels not placed on the basic service tier could be treated as new product tiers, there were no CPS tiers in those communities, as of September 1, 1993, that were subject to rate regulation pursuant to Section 76.922 of our rules. Therefore, the Bureau subsequently dismissed all FCC Form  Y!-329 complaints filed against Century in each of those seven communities. !C Y#-ԍxSee Century Cable TV, CUID Nos. IN0094, WV0156, WV0378, KY0120, AZ0019,  Y$-DA 941422 (Cab. Serv. Bur., released Dec. 12, 1994); Cable TV of Greater San Juan, San  Y$-Juan, Puerto Rico, CUID No. PR0001, DA 941530 (Cab. Serv. Bur., released Dec. 20,  Y%-1994); Century Cable TV, Brunswick, Georgia, CUID No. GA0040, DA 941531 (Cab. Serv. Bur., released Dec. 20, 1994)."! 0*(("Ԍ  X- Discussion   Y-x6. The rate cards and channel lineup cards submitted by Multimedia for each of the subject communities indicate that Multimedia restructured its service offerings in the subject communities on September 1, 1993 in essentially the same way that Century did for the seven areas mentioned above where LOI orders have been issued. Multimedia discontinued its CPS offerings and placed all of its channels into a single basic service tier, except for five channels which it moved from the basic service tier into an eight channel a la carte  Y -package.  Y| -ԍ In the subject communities, the five channels which were removed from the basic service tier are Turner Network Television (TNT), Cable News Network (CNN), CNHN, The Discovery Channel (TDC), and Turner Network News (TNN). The remaining three channels in the a la carte package were not previously  Y -offered on either Multimedia's basic service tier or its cable programming services tier. K Y-ԍ In the subject communities, the three channels which comprise the a la carte packages but which were not formerly offered on a rateregulated tier are Cartoon, The Learning Channel (TLC), and ESPN2.  Y -x7. We feel that we have sufficient information regarding Multimedia's restructured  Y -offerings in the subject communities to conclude, in accord with the Going Forward Order, that they should be treated the same way that we treated Century's restructured offerings in the seven communities where we issued LOI orders. As in these latter communities, although the instant restructuring resulted in the elimination of Multimedia's CPS tiers, the small number of channels that were removed from rateregulated tiers and offered in the a la carte packages did not constitute an evasion of our then existing rules. Therefore, consistent with the action taken in the LOI orders, we will allow Multimedia to treat its a la carte packages in the subject communities as new product tiers even though they would not qualify  Y-as new product tiers under the Going Forward Order because one of the conditions for a new product tier is that channels may not be removed from a basic service tier or a CPS tier. Thus, we need not rule on the FCC Form 329 complaints filed against Multimedia in the subject communities because there were no CPS tiers subject to rate regulation pursuant to Section 76.922 of our rules as of September 1, 1993. In addition, nothing in these complaints indicates that Multimedia's new product tiers violate any of the conditions for  Yi-establishing those tiers outlined in the Going Forward Order.Pi Y#-ԍ We have excused one violation, i.e., migrating channels from rateregulated tiers, in only those situations where, as here, the new product tier is established as an outgrowth of  Y%-our change in our a la carte policy. See Going Forward Order at Para. 51. P "=U 0*((="Ԍ  X- Conclusion   Y-x8. Accordingly, IT IS ORDERED that the a la carte packages created by Multimedia Cablevision, Inc. in the communities listed in the attached Appendix may be treated as new  Yv-product tiers under our Going Forward Order.  YJ-x9. IT IS FURTHER ORDERED that all FCC Form 329 complaints pending against the CPS rates of Multimedia Cablevision, Inc. in each of the communities listed in the attached Appendix are DISMISSED.  Y -x 10. This action is taken pursuant to delegated authority under Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321. x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hhGregory J. Vogt x` `  hhDeputy Chief, Cable Services Bureau"0*(("  Y- XX  #Xw PE37}XP# . APPENDIX ă  XXX   Y-x` `  hh@ 8/31/93   9/1/93  W-x` `  hh@ PreRegulation Post Regulation  Y-X` h X` h  CUID Communityhh Basic Tiers Basic Tiers A la Carte#Xw PE37}XP# h ddx !ddxwb, h    &&  X` h  D L T\ d!#&l(*-t/1$4|68,;=?IL0537 Batavia 19 24 38 0 8 q w &w&  IL0538yw Lisleyw 19yw 22yw 38yw 0yw 8q q  IL0838 w Alsip w 18 w 24 w 38 w 0 w 8q q y IL1123[ w Cook County[ w 18[ w 22[ w 38[ w 0[ w 8q q   IL1303 w North Barrington w 12 w 21 w 30 w 0 w 8q q [  IL1304=w Inverness=w 12=w 21=w 30=w 0=w 8q     &w&  IL1420 Barrington Hills 12 21 30  0 8  = "0*0*0*"  Y- Federal Communications Commission ă CABLE SERVICES BUREAU RELEASE =COVER NOTE  xP-#Xw PE37}XP##c PE37 P# c !ddxwb, Addx z c   =    yPG-`|J DATE ă[ March 15, 1995      yP-`F J TYPE OF ITEM ă Benchmark Rate Order  [  yO- `` JSUBJECT ă Multimedia (Illinois)    yO - `JvNEED TO BE ADOPTED BY ă-      yP -`eJp NEED TO BE RELEASED BY ă    -   yPQ -`Jx DATE/TIME REC'D BY NO ăe    ax E Addx z addx-x E q  h   yP- SUMMARY OF ITEM ăq0- h   Number of Subscribers: n/a Number of Complaints: 9 Refund Amounts: none Summary of Item: Dismissal on the basis that there is no CPS tier over which to exercise jurisdiction. 0  xP-# c PE37 P#  yO- CLEARANCES: J addx-x ddx^( ( ( J 0       W Initiator(s) X5Initial/Date 1Phone No(s).  P ^ J  Zenji NakazawaNJ NJ P P  JJ  Jeff SteinbergJ J P   N Jw  Division Chiefw w   w T ddx^( ( ( ddx( ( ( T         yP-7 Reviewer(s) ă  yP-X5 Initial/Date ă  yP-1 Phone No(s). ă  P  J  Greg Vogt  J  J P P  Bill Johnson '"J '"J P     Jw  #w #w   '"waƀ%  yOo$- # Xw PE37}XP##c PE37 P#FINAL APPROVAL: BUREAU CHIEF  xP7%- Upon approval of the Bureau Chief, please forward this package to the Notification Office, Room 907 for processing. Comments: "'0*0*0*&!" h ddx( ( ( ddxb, h "    P '"" &J&  J J J J J J P    &Jw&  `w `w `w `w `w `w   w