********************************************************    
                         NOTICE
********************************************************

This document was converted from
WordPerfect to ASCII Text format.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
WordPerfect version or Adobe Acrobat version, if available.

*****************************************************************
                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554


In the Matter of                )  CUID Nos.:     MD0057 (Gaithersburg)
                                )            MD0222 (Rockville)
                                )            MD0223 (Chevy Chase)
                                )            MD0224 (Silver Spring)
                                )            MD0225 (Washington Grove)
SBC Media Ventures, Inc.        )            MD0226 (Takoma Park)
d/b/a Montgomery Cable TV       )            MD0227 (Somerset)
                                )            MD0228 (Poolesville)
                                )            MD0229 (Barnesville)
                                )            MD0230 (Brookville)
                                )            MD0231 (Garret Park)
                                )            MD0233 (Glen Echo)
                                )            MD0234 (Kensington)
                                )            MD0235 (Laytonsville)
                                )            MD0236 (Montgomery)
                                )            MD0274 (Chevy Chase)
                                )            MD0275 (Chevy Chase Sec IV)
                                )            MD0276 (Chevy Chase Sec V)
                                )            MD0277 (Chevy Chase VIII)
                                )            MD0340 (Germantown)
Complaints Regarding            )            MD0341 (Burtonsville)
Cable Programming Services Tier )            MD0342 (Potomac)
Rate Increase                   )            MD0343 (Boyds)
                                )            MD0344 (Wheaton)
                                )            MD0345 (Derwood)
                                )            MD0346 (Olney)
                                )            MD0347 (Cabin John)
                                )            MD0348 (Bethesda)
                                )            MD0349 (West Bethesda)

                             ORDER

     Adopted:  April 30, 1997           Released:  May 2, 1997  

By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau:

     1.   Here we consider complaints about the rate the above-captioned operator ("Operator")
was charging for its cable programming service tier ("CPST") in the communities referenced above. 
Operator  has attempted to justify its CPST rates through benchmark justifications on FCC Forms
393, 1200, 1210 and 1240.  We have already issued a separate order in which we found that
Operator's rates in effect before May 15, 1994 were reasonable.  We also issued a separate order and
accompanying erratum in which we concluded that Operator's rates in effect from May 15, 1994
through September 30, 1995 were reasonable ("Prior Order").  Accordingly, this Order addresses
only the reasonableness of Operator's CPST rates in effect from October 1, 1995 to the present.
     
     2.   Under the Communications Act, the Federal Communications Commission
("Commission") is authorized to review the CPST rates of cable systems not subject to effective
competition to ensure that rates charged are not unreasonable.  If the Commission finds the rate to
be unreasonable, it shall determine the correct rate and any refund liability.  

     3.   To justify rates for the period beginning May 15, 1994 through a benchmark or cost
of service showing, operators must use the FCC Form 1200 series.  Operators are permitted to make
changes to their rates on a quarterly basis using FCC Form 1210.  Operators may alternatively
justify adjustments to their rates on an annual basis using FCC Form 1240 to reflect reasonably
certain and quantifiable changes in external costs, inflation, and the number of regulated channels
that are projected for the twelve months following the rate change.  Any incurred cost that is not
projected may be accrued with interest and added to rates at a later time.

     4.    Operator's FCC Form 1200 and FCC Form 1210 filings for the period ending
September 30, 1995 were reviewed and addressed in our Prior Order.  In that order, we found that
Operator justified a maximum permitted rate ("MPR") of $13.15 on its FCC Form 1210 for the
period ending September 30, 1995.  Therefore, we find Operator's actual CPST rate of $11.87 for
the period of October 1, 1995 through October 31, 1995, and Operator's actual CPST rate of $13.15
for the period November 1, 1995 through June 9, 1996 to be reasonable.  

     5.   Operator filed an FCC Form 1240 for the projected period June 10, 1996 through
June 9, 1997.  Upon review of Operator's FCC Form 1240, we find that Operator's MPR of $14.85
is reasonable.  Therefore, we find Operator's actual CPST rate of $14.85 for the period June 10, 1996
to the present to be reasonable.

     6.   Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the CPST rate of $11.87 charged by Operator in the communities referenced
above for the period of October 1, 1995 through October 31, 1995 IS REASONABLE.
 
     7.   IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the CPST rate of $13.15 charged by Operator in the communities referenced
above for the period November 1, 1995 through June 9, 1996, IS REASONABLE.

     8.   IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the CPST rate of $14.85, charged by Operator in the communities referenced
above for the period June 10, 1996 to the present, IS REASONABLE.

     9.   IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the complaints against the CPST rates charged by Operator in the
communities referenced above ARE DENIED.

                         FEDERAL COMMUNICATIONS COMMISSION 



                         Elizabeth W. Beaty
                         Chief, Financial Analysis and Compliance Division                          Cable Services Bureau