FOR FCC RECORD ONLY $//Multimedia Cablevision, Inc., Stillwater, OK., et al., MO&O, DA95-1124//$ $/76.922 Rates for Cable Programming Service Tier/$ $/benchmark cable rates/$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. DA 95-1124 In the Matter Of ) ) CUID Nos. OK0059, Stillwater; OK0094, Multimedia Cablevision, Inc. ) Warr Acres; OK0103, Chickasha; ) OK0108, Norman; OK0115, Yukon; ) OK0138, Edmond; OK0143, Moore; Benchmark Filings to Justify Cable ) OK0146, Midwest City; OK0154, Del Programming Service Prices ) City; OK0170, Bethany; OK0171, Nichols ) Hills; OK0180, Mustang; OK0181, The ) Village; OK0389, Choctaw. MEMORANDUM OPINION AND ORDER Adopted: May 18, 1995 Released: May 24, 1995 By the Chief, Cable Services Bureau: 1. Here we consider complaints about the prices Multimedia Cablevision, Inc. ("Multimedia") was charging for its cable programming service ("CPS") tier in the communities referenced above. Multimedia has chosen to attempt to justify its prices through benchmark showings on FCC Form 393. This Order addresses the reasonableness of Multimedia's prices only through May 14, 1994. At a later time we will issue a separate order addressing the reasonableness of the prices 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 complete and timely complaint. The filing of a complete and timely 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 complete and timely 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 complete and timely complaints for each of the franchise areas addressed in this Order were served on Multimedia and received by the Commission on the dates set forth in the Attachment. 5. Multimedia responded to the complaints in CUID Nos. OK0094, OK0103, OK0108, OK0146, OK0171, and OK0180 by filing motions to dismiss on the grounds that Multimedia did not offer a cable programming service tier in these communities and was therefore not subject to rate regulation by the Commission. Specifically, Multimedia argued that its seven-channel a la carte package was not subject to rate regulation, and that it offered no other CPS tier. Multimedia did not initially respond to the complaints in the other communities addressed in this Order. Subsequently, the Commission requested that Multimedia file either a Form 393 or a cost-of-service showing including its a la carte package as a rate-regulated tier for all the communities addressed herein. Multimedia attempted to justify its CPS prices through FCC Forms 393 filed on March 22, 1995. Discussion 6. Multimedia states that it restructured its service offerings in each of the communities addressed in this Order on September 1, 1993 and began offering seven channels on an individual, or a la carte, basis. Multimedia asserts that these a la carte channels could also be purchased collectively as one seven-channel package (Value Pack). All of the channels were previously offered either on Multimedia's basic or CPS tier. At about the same time, Multimedia moved the other channels that had previously been offered on its CPS tier into its basic tier. A similar restructuring was addressed in our letter of inquiry ("LOI") order released on December 22, 1994, in which we resolved the regulatory status of an a la carte package offered by Falcon Cablevision ("Falcon") in Southern Shores, North Carolina. In the LOI order, we found that the retiering constituted an evasion of rate regulation. We concluded that Falcon's a la carte package must be treated as a rate-regulated cable programming service tier and that the channels composing it must be counted as rate- regulated channels as of September 1, 1993, for purposes of completing the rate justification forms. There are no facts in the record of this proceeding that materially distinguish Multimedia's offering from Falcon's package. We will therefore treat Value Pack as a rate- regulated CPS tier and deny Multimedia's motions to dismiss. 7. Multimedia asserts that its monthly CPS prices are justified by its benchmark filings because these prices are less than the maximum permitted charges as calculated in the filings. Upon review, we have found no apparent errors that would result in Multimedia's prices for its Value Pack tier exceeding the maximum permitted prices. Conclusions 8. Upon review of the record herein, we conclude that, for the period from the date the Commission received the earliest complaint for each of the subject communities set forth in the Attachment to May 14, 1994, Multimedia's showing supports as reasonable its CPS tier prices per month (plus franchise fee) as set forth in the Attachment for the Value Pack. 9. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321, that Multimedia's motions to dismiss the complaints against its cable programming service prices in CUID Nos. OK0094, OK0103, OK0108, OK0146, OK0171, and OK0180 ARE DENIED. 10. IT IS FURTHER ORDERED that the complaints referenced herein against the cable programming service prices charged by Multimedia Cablevision, Inc. of Oklahoma in the communities referenced above, and all other complaints in these franchise areas related to the same prices, ARE DENIED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau Attachment CUID No. COMMUNITY DATE SERVED DATE FILED VALUE- (on Multimedia) (with FCC) PACK OK0059 Stillwater 10/27/93 11/1/93 $3.88 OK0094 Warr Acres 2/17/94 2/23/94 $2.41 OK0103 Chickasha 3/30/94 4/4/94 $3.48 OK0108 Norman 10/12/93 10/18/93 $2.89 OK0115 Yukon 10/18/93 10/26/93 $2.50 OK0138 Edmond 10/1/93 10/8/93 $3.67 OK0143 Moore 10/7/93 10/12/93 $2.61 OK0146 Midwest City 9/17/93 9/22/93 $3.43 OK0154 Del City 10/13/93 10/20/93 $2.24 OK0170 Bethany 10/13/93 10/18/93 $2.41 OK0171 Nichols Hills 9/14/93 9/20/93 $3.67 OK0180 Mustang 10/21/93 10/20/93 $2.59 OK0181 The Village 10/19/93 10/23/93 $3.67 OK0389 Choctaw 2/28/94 2/28/94 $3.22