NOTICE ********************************************************* NOTICE ********************************************************* This document was originally prepared in Word Perfect. If the original document contained-- * Footnotes * Boldface & Italics --this information is missing in this version The document format (spacing, margins, tabs, etc.) is changed too. If you need the complete document, download the Word Perfect version. For information about downloading documents (FTP) see file pnmc5021. File pnmc5021 (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ***************************************************************** ******** FOR FCC RECORD ONLY $//Century Cable TV, MO&O, DA-95-1010//$ $/76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. DA 95-1010 In the Matter of ) ) CUID Nos. NM0039 (Deming); Century Cable TV ) NM0122 (Pojoaque); FL0496 ) (Dunnellon) Benchmark Filings To Support ) Cable Programming Service Prices ) Memorandum Opinion and Order Adopted: May 2, 1995 Released: May 5, 1995 By the Chief, Cable Services Bureau: Introduction 1. Here we consider complaints about the prices Century Cable TV ("Century") charges for its cable programming service ("CPS") tiers in the above-captioned communities (the "subject communities"). See Appendix for a list of the subject communities and the number of basic and CPS channels Century offered in each community both before and after September 1, 1993. Rather than attempting to justify its prices through a benchmark or cost of service showing, Century responded to the complaints in Deming, New Mexico and Pojoaque, New Mexico by stating that it has no CPS tier in those systems. On December 21, 1994, Century submitted rate cards and channel line-up cards in support of its claim that CPS tiers did not exist as of September 1, 1993, and still do not exist, in either Deming or Pojoaque. Century did not respond to the complaint challenging the CPS rate in Dunnellon, Florida. 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. Background 4. The Cable Services Bureau has released orders resolving letters of inquiry ("LOIs") regarding Century's systems in Huntington, West Virginia; Morgantown, West Virginia; Muncie, Indiana; Owensboro, Kentucky; Yuma, Arizona; Brunswick, Georgia; and San Juan, Puerto Rico. Relying on the Commission's Going Forward Order, 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 do 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 rate-regulated 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 at market levels under the Going Forward Order. 5. Since the LOI orders found that the elimination of Century's CPS tiers does not constitute a clear evasion of rate regulation and those channels not placed on the basic service tier could be treated as a new product tier, 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 329 complaints filed against Century in each of those seven communities. Discussion 6. The rate cards and channel line-up cards submitted by Century for Deming and Pojoaque indicate that Century restructured its service offerings on September 1, 1993 in essentially the same way that it did for the seven areas mentioned above where LOI orders have been issued. Although Century did not respond to the complaint in Dunnellon, Florida, the complainant attached rate cards and channel line-up cards effective May 1, 1993 and September 1, 1993 which show that the same type of restructuring also took place in Dunnellon on September 1, 1993. Specifically, Century discontinued its CPS offerings and placed all of its channels into a single basic service tier, except for a few channels which it offered on an a la carte basis. In the subject communities, Century offered two to four a la carte channels. Similarly, Century's a la carte offerings consisted of three to six channels in the above-mentioned areas where LOI orders have been issued. 7. We feel that we have sufficient information regarding Century's restructured 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 Century's CPS tiers, the small number of channels that were 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 Century to treat its a la carte packages in the subject communities as new product tiers even though they would not qualify 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 Century 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 Century's new product tiers violate any of the conditions for establishing those tiers outlined in the Going Forward Order. Conclusion 8. Accordingly, IT IS ORDERED that the a la carte packages created by Century Cable TV in the subject communities may be treated as new product tiers under our Going Forward Order. 9. IT IS FURTHER ORDERED that all FCC Form 329 complaints pending against the CPS rates of Century Cable TV in each of the subject communities are DISMISSED. 10. This action is taken pursuant to delegated authority under Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau APPENDIX 8/31/93 9/1/93 Pre-Regulation Post Regulation CUID Community Basic Tiers Basic Tiers A la Carte NM0039 Deming 13 17 26 0 4 NM0122 Pojoaque 12 8 27 0 2 FL0496 Dunnellon 14 18 29 0 3