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(1) (a) i) a)/+f=(_+w@v*_+ttq` ` ` hhhpppa1DLA Outline+fFirm Outline Format/+f=(_+w@#v*_+tu-  a2DLA Outline+fFirm Outline Format/+f=(_+w@#v*_+tv8 ` ` `  a3DLA Outline+fFirm Outline Format/+f=(_+w@#v*_+tw:` ` `  2x=yڨz{5a4DLA Outline+fFirm Outline Format/+f=(_+w@#v*_+txE ` ` ` a5DLA Outline+fFirm Outline Format/+f=(_+w@#v*_+tyP!"` ` ` hhha6DLA Outline+fFirm Outline Format/+f=(_+w@#v*_+tz[#$` ` ` hhha7DLA Outline+fFirm Outline Format/+f=(_+w@#v*_+t{f%&` ` ` hhh2L|%ZIa8DLA Outline+fFirm Outline Format/+f=(_+w@#v*_+t|q'(` ` ` hhhppp¢7jC:,9Xj\  P6G;XP2a=5,&a\  P6G;&Py.X80,X\  P6G;P2e=5,&e4  pG;& y.\80,T\4  pG;!P:% ,J:\  P6G;JPH5!,i,5\  P6G;,Py.\80, {\4  pG;\{,W80,%W*f9 xr G;Xa$G,',YG\  P6G;P y.X80,IX\  P6G;P @|ND,i|\  P6G;P @ND,,ʼ4  pG;2\~^ڳ87jC:,9Xj\  P6G;XP2a=5,&a\  P6G;&Py.X80,X\  P6G;P 2e=5,&e4  pG;& y.\80,T\4  pG;!P:% ,J:\  P6G;JP"H5!,i,5\  P6G;,P\#0_=5,%&_*f9 xr G;&X\${,W80,%0W*f9 xr G;Xa$G,',G\  P6G;P7jC:,9Xj\  P6G;XP2a=5,&a\  P6G;&Py.X80,X\  P6G;P 2e=5,&e4  pG;& y.\80,T\4  pG;!P:% ,J:\  P6G;JP"H5!,i,5\  P6G;,P\#0_=5,%&_*f9 xr G;&X\${,W80,%0W*f9 xr G;Xa$G,',G\  P6G;P y.X80,X\  P6G;P @|ND,5|\  P6G;P @ND,4  pG; S-#X\  P6G;P#X01Í ÍX01Í Í#&a\  P6G;&P# X   Zi S-  Federal Communications Commission`g(#:FCC 97375 ă  yxdddy ЊvK #X\  P6G;P#Before the Federal Communications Commission  yO}"Washington, D.C. 20554 ă  Sh-#&a\  P6G;&P# j) In the Matter ofj) j) SOCIAL CONTRACT FORj) COMCAST CABLE COMMUNICATIONS, INC.j) j) j)  S -T ORDER lU  S -X` hp x (#%'0*,.8135@8:1 yOx%-ԍ47 U.S.C.  543(c).> " x,**888""Ԍ S-  3.` ` In the 1992 Cable Act, Congress stated its intent to ensure that, where economically  S-  justified, cable operators continue expanding the capacity and programs offered over their systems.T} yO@-ԍ1992 Cable Act  2(b)(3), 106 Stat. 1463.T  S-  [Subsequently, in our Report and Order and Further Notice of Proposed Rulemaking in MM Docket No.  S-  93215 and CS Docket No 9428 ("Cost Order"), we announced that we would consider proposed upgrade   incentive plans that would "permit an operator to enter into a social contract with its customers under   which the operator would be given substantial flexibility in setting rates for new regulated services it  S-  Mintroduces, such as new service tiers offering additional program channels."LX} {O -  ԍImplementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992: Rate  {O -  Regulation; and Adoption of a Uniform Accounting System for Provision of Regulated Cable Service, MM Docket   No. 93215 and CS Docket No. 9428, Report and Order and Further Notice of Proposed Rulemaking, 9 FCC Rcd  {Oh -  4527, 4678 (1994); see also Implementation of Sections of the Cable Television Consumer Protection and   Competition Act of 1992: Rate Regulation; and Adoption of a Uniform Accounting System for Provision of Regulated  {O -  Cable Service, MM Docket No. 93215 and CS Docket No. 9428, Second Report and Order, First Order on  {O -  Reconsideration, and Further Notice of Proposed Rulemaking, 11 FCC Rcd 2220, 228184 (1996) ("Second Cost  {O-Order"). In exchange for this rate   =flexibility, rates for existing services would remain "stable and reasonable," at levels no higher than those   =in effect before the social contract was implemented or no higher than permitted by the benchmark/price  S-  cap approach.Ll } {O-ԍCost Order, 9 FCC Rcd at 4678.L The quality of existing services would be maintained or improved.1 } {O:-ԍId.1 These social contracts   [would remain in effect for a fixed period and would offer operators an opportunity to earn higher profits  SL -  as an incentive for upgrading their cable systems and introducing new and improved regulated services.=L } {O|-ԍId. at 467880.=  S$ -  <In the Telecommunications Act of 1996 ("1996 Act"),Q $ "} yO-ԍPub. L. No. 104104, 110 Stat. 56 (1996).Q Congress sought to encourage the rapid deployment  S -  jof advanced communications services and technologies for the benefit of all Americans.w } {ON-ԍSee H. Conf. Rep. No. 458, 104th Cong., 2d Sess. 1 (Jan. 31, 1996).w These are goals that the Commission's upgrade incentive policy was designed to fulfill.  S -  4.` ` Under the terms of the proposed Social Contract, Comcast would ensure that by March   31, 1999, the majority of its subscribers will receive service on stateofthe art, upgraded systems.   Comcast also would provide free cable and internet connections, services, and modems to schools and   jlibraries. In exchange for these commitments, Comcast would be permitted to migrate up to four existing   [services on some of its systems into a Migrated Product Tier ("MPT"), which it could convert to a New  S-  Product Tier ("NPT") on or after January 1, 1998.w XD} yO$-  ԍAn MPT consists of programming services that are moved from a cable system's existing regulated tiers. The   irate for the new tier is regulated by the Commission. An NPT is a tier of new services. NPT rates are subject to marketbased pricing; they are not subject to the Commission's rate regulations.w The proposed Social Contract contains terms similar"d ,`(`(88"  S-  Mto those provided by Continental Cablevision, Inc. ("Continental"),[ } yOh-ԍContinental has since changed its name to MediaOne.[ and Time Warner Cable ("Time Warner") under their  S-  Social Contracts. X} {O-  ԍSocial Contract for Time Warner, 11 FCC Rcd 2788 (1995) ("Time Warner Social Contract"), appeal pending  {Or-  ,sub nom. Intercommunity Cable Regulatory Comm'n v. FCC, No. 96-1027 (D.C. Cir., filed Jan. 29, 1996) (motion  {O<-  hto hold in abeyance granted by order dated June 12, 1996); Social Contract for Continental Cablevision, 11 FCC Rcd  {O-  299 (1995) ("Continental Social Contract"); Continental Cablevision, Inc., Amended Social Contract, 11 FCC Rcd  {O-11118 (1996) ("Continental Amended Social Contract"). Comcast did not seek to increase its rates by $1.00 per year, which was included in   the Continental and Time Warner Social Contracts as a means for those operators to fund the required  S`-  system upgrades.`} {O -  ԍTime Warner Social Contract, 11 FCC Rcd at 2864; Continental Amended Social Contract, 11 FCC Rcd at 11161. The proposed Social Contract does not resolve pending CPST rate complaints or BST  S8-rate proceedings."8l } yOD-  ԍOn December 1, 1995, the Commission adopted a rate resolution that resolved 264 cable rate complaints filed  {O -  against Comcast. Comcast Cable Communications, Inc., 11 FCC Rcd 4029 (1995) ("Comcast Rate Resolution").   The complaints involved service to approximately 1.3 million Comcast subscribers, and the resolution provided $6.7 million in refunds.  S-  _5.` ` On May 2, 1997, the Commission issued a public notice summarizing the proposed Social  S-  \Contract and providing information on how interested parties could obtain a copy of it._\V } {O-  YԍPublic Notice: Social Contract for Comcast Cable Communications, Inc. Available for Comment, FCC 97149  {O-  (May 2, 1997) ("Public Notice"). Comcast served a copy of the public notice and proposed Social Contract on all of its local franchising authorities._ The public   notice provided a 45day period for comments on the proposed Social Contract and a 15day period   thereafter for Comcast's reply. We have received 116 comments, including reply and supplemental comments. Ninetyfour commenters expressed unqualified support for the Social Contract.  S -  III. SUMMARY OF SOCIAL CONTRACT ă  S -- A. System Upgrades ă  SX-  ~6.` ` Comcast will be required to upgrade its cable systems so that by March 31, 1999, 80%   of Comcast's subscribers will be served by a system with a capacity of at least 550 MHz; 60% of Comcast   \subscribers will be served by a system with a capacity of at least 750 MHz; systems serving 80% of   Comcast subscribers will use fiber optic technology to transport signals from the headend to the   =neighborhood nodes; and 80% of Comcast's systems will use addressability or other suitable technology   Mto make interactive services available to subscribers and to enhance the ability of subscribers to make service choices."hz,`(`(88"Ԍ S-ZL B. Service to Schools and Libraries ă  S-  7.` ` Comcast will offer a free cable connection, upon request, to all elementary and secondary  S-  public schools and certain private schools} yO-  -ԍElementary and secondary (K12) private schools that receive funding under Title I of the Elementary and  {O-Secondary Education Act of 1965 will be eligible for these benefits. 20 U.S.C.  6301, et seq. and to 250 public libraries located within 200 feet of the  S`-  jZactivated plant of its cable system.MX`"} yO"-  ԍComcast will make every reasonable effort to provide cable internet service to a minimum of 100 libraries   Jduring the threeyear period beginning on the Effective Date and to a minimum of 250 libraries during the fiveyear period beginning on the Effective Date.M Comcast will offer a cable connection at cost to any other unserved   kpublic school or public library located beyond 200 feet of the activated plant of its cable systems but   within its franchise area. Service provided on the BST and CPST, including service provided on MPTs   0and NPTs, will be provided to the connected schools without cost. Comcast will wire additional   classrooms in existing schools at cost, but for new schools and existing schools undergoing extensive   rehabilitation, Comcast will coordinate whenever possible with local officials and contractors to wire each   of the classrooms in such schools free of charge. Comcast also will provide to the connected schools a   free monthly educational program guide with curriculum support ideas to assist educators in effectively   using the new services, and Comcast will develop and provide to connected schools materials for teachers   that explain the educational applications of Comcast's broadband cable services. Comcast will not seek to recover the costs of the free connections from cable customers as external or other costs.  S -  8.` ` Within one year after Comcast begins offering internet access service to residential   kcustomers in a specific franchise area, Comcast will offer this service free of charge and provide a free   >cable modem to each connected school and public library in the franchise area. Comcast will provide   additional modems at cost to connected schools and will provide free internet access service for each   kmodem purchased. Comcast also will sponsor local workshops and will develop training materials to   enable teachers to optimize their use of the internet service. The staff from connected libraries will be permitted to participate in these training workshops.  S@-38 C. Home Wiring ă  S-  9.` ` Comcast will permit subscribers to remove, maintain, replace, or rearrange their home   cable wiring so long as it does not create signal leakage or interfere with Comcast's ability to provide  S-  services and collect revenues from subscribers in a multiple dwelling unit.wB} yO-  ԍThe question of whether all cable operators should permit this level of subscriber control over home wiring  {OJ -  @is at issue in our pending rulemaking in CS Docket No. 95184 and MM Docket No. 92260. See  {O!-  \Telecommunications Services Inside Wiring, CS Docket No. 95184, 11 FCC Rcd 2747, 276569 (1996);  {O!-  Implementation of the Cable Television Consumer Protection and Competition Act of 1992: Cable Home Wiring,   xFirst Order on Reconsideration and Further Notice of Proposed Rulemaking, 11 FCC Rcd 4561, 456266 (1996).   Our rules currently provide subscribers the opportunity to control their inside wiring if they elect to purchase it upon  yO8$-  termination of service. 47 C.F.R.  76.802. Comcast offered to meet the additional commitments set forth in the   Social Contract even though they exceed what our rules required of operators at the time Comcast submitted its proposal.w Comcast will notify its   subscribers of this benefit with an initial notice and will provide a subsequent notice annually. Any signal   kleakages or repairs incurred due to wiring by a subscriber will be the responsibility of that subscriber. "P,`(`(88"   Comcast will provide the necessary home wiring materials to subscribers at cost and will identify other sources for such equipment.  S-  D. Migrated Product Tiers and New Product Tiers ă  S8-   10.` ` Comcast may move up to four channels to an MPT in certain systems, provided that on   or before March 31, 1999, each such system will have a capacity of at least 550 MHz and will offer  S-  [service on at least 55 channels that are subject to regulation.} yOP-  ԍComcast may create MPTs and convert them to NPTs on eligible systems before those systems have reached   Za capacity of 550 MHz and offer 55 regulated channels of service, but, as explained below, Comcast will be liable   for refunds if it creates MPTs on systems that do not meet these capacity and channel standards by March 31, 1999.   Comcast may create MPTs on eligible systems immediately after the Effective Date if it so chooses. In addition,   Comcast may create MPTs on eligible systems even if the systems reached the required capacity and regulated channel offerings before the Effective Date of the Social Contract. Comcast may create MPTs in all systems   jthat meet the foregoing capacity standard, except systems in which Comcast has already created an NPT  S-  as a result of a la carte packaging@} {Ox-  ԍThe NPTs as a result of a la carte packaging are marketed under the name ValuePac in all systems that offer them. and systems in which Comcast was permitted to create an MPT or  Sr-  NPT as a result of its December 1, 1995 rate resolution ("Rate Resolution").|r} {O-  ԍComcast Rate Resolution, supra note 15. The Rate Resolution provided, among other things, that on certain   systems Comcast would be permitted to move up to four existing services from the CPST and BST into an MPT.  {O>-  JId., 11 FCC Rcd at 4042. Comcast was permitted to convert any MPTs created under the Rate Resolution to NPTs  {O-  ias of March 1, 1997. Id. at 4043. The systems in which Comcast was permitted to create MPTs and NPTs as a   Jresult of its Rate Resolution are listed in Exhibit 1 to the Rate Resolution, which is appended to our order approving  {O-  it. See id. at 404547. MPTs and NPTs created under the Rate Resolution are marketed by Comcast under the name ValuePac.| Comcast may add an   unlimited number of new services to its MPTs. The initial price of each MPT on a perchannel basis shall   zbe equal to the price of the services that were migrated to the MPT. Comcast may increase the initial   price of any MPT to reflect the addition of new services, provided that the MPT price may increase no   more than $0.20 per added channel, plus license fees for each added channel, and inflation and external   cost increases permitted by the Commission's regulations governing CPSTs. The limitation on MPT rate   increases shall not apply to systems that the Commission has found to be subject to effective competition.   On or after January 1, 1998, Comcast may convert the MPTs created under the Social Contract to NPTs.   ZIf Comcast establishes an MPT or an NPT pursuant to the Social Contract on any system that has not been   upgraded to at least 550 MHz and 55 regulated channels on or before March 31, 1999, Comcast will be   krequired to refund any revenues collected for services provided on such MPT or NPT that exceed the   maximum permitted rate that Comcast would have been allowed to charge for such services absent the MPT or NPT.  SB- E. Reporting Requirements ă  S-  2 11.` ` Comcast will be required to provide an annual progress report to the Commission no later   @than 90 days following the end of each calendar year that the Social Contract is in effect. The   Commission will be entitled to inspect Comcast's books and records and interview its employees to assess Comcast's compliance with the Social Contract."z,`(`(88"Ԍ S-ԙ F. Effective Date and Term ă  S-   12.` ` The Social Contract will become effective on the date the Commission adopts it and will  S-  terminate on March 31, 1999,} yO-  ԍUnder the 1996 Act, CPST rates will cease to be regulated after March 31, 1999. 1996 Act  301, 47 U.S.C.  543(c)(4). except with respect to the requirements concerning home wiring and   service to schools and libraries, which will terminate five years after the Effective Date. In addition,   Comcast may terminate or modify the Social Contract prior to March 31, 1999, if the Commission consents to such early termination.  S-6 IV. COMMENTS ă  Sp-  P 13.` ` Numerous local franchising authorities, public officials, schools, libraries, local businesses,   jlegislators, and other members of the public have written in support of the proposed Social Contract and  S -  [urge the Commission to adopt it.DX } yO-  iԍSome of these comments were filed after the 45day deadline specified in the Public Notice. To ensure that   -the public record is complete, we will accept and consider these latefiled comments. All commenters are listed in the Appendix to this Order.D These commenters commend Comcast for its commitment to serving   /their communities and praise Comcast's commitment to provide free cable connections and cable and internet service to schools and libraries. The Mayor of Trenton, New Jersey, for example, stated:  XThere is no question that these communications tools are part of the essential requirements  for helping our children learn and achieve a 21st century education. Unfortunately, there  Qare not enough of these critical outlets available to the majority of New Jersey's school  4children. That's why I applaud this agreement and look wholeheartedly toward its  S-benefits in the future.{@} yO-ԍComments of Honorable Douglas H. Palmer, Mayor, City of Trenton, New Jersey, at 1. {   S-   14.` ` A comparatively small number of commenters urge the Commission to modify the Social  Sh-  Contract or reject it in its entirety.xh} yO-  ԍEighteen parties filed comments requesting that the Social Contract be clarified, modified, or rejected.   Although the Public Notice allowed only Comcast to file reply comments, we also received joint reply comments   hfrom the City of Tallahassee, Florida ("Tallahassee"), and Howard County, Maryland ("Howard County"). The City   of Indianapolis Cable Communications Agency ("Indianapolis") submitted latefiled supplemental comments in which   YIndianapolis responded to Comcast's reply comments ("Indianapolis Supplemental Comments"). To ensure that the   Zpublic record is complete and because we are accepting latefiled comments in support of the Social Contract, we accept and consider the additional comments filed by Tallahassee/Howard County and Indianapolis. To address concerns raised by these commenters, we clarify and modify the Social Contract in several respects.  S-%6 V. DISCUSSION ă  S-  15.` ` In accordance with the discussion below, we find that the Social Contract, as clarified and   zmodified, serves the public interest and the interests of Comcast's subscribers and promotes the goals"x,`(`(88"  S-  jenumerated by Congress in the Communications Act of 1934 ("Communications Act"),M} {Oh-ԍ47 U.S.C.  151, et seq.M the 1992 Cable  S-  MAct, the 1996 Act, and the Cost Order. Subscribers will benefit from improved service offerings and   Lpicture quality made possible by Comcast's use of state of the art technology, and from increased choice   in the selection of programming tiers. In addition, Comcast's commitment to offer free cable connections,   free cable and internet service, and free cable modems to schools and libraries in its franchise areas will provide a significant public benefit to these institutions and to the public they serve.  S-  16.` ` Local franchising authorities will retain their right to enforce existing franchise   requirements, including upgrade obligations, and to seek upgrade commitments and other benefits for their   individual communities through the franchise renewal or modification process, or through any other lawful   .means. Franchising authorities, subscribers, and other interested parties will be able to comment on any   proposed modifications to the Social Contract and may seek redress at the Commission if Comcast violates the terms of the Social Contract or this Order.  S -  17.` ` The opposing commenters share several concerns. Some object to the Social Contract in   its entirety, and others propose modifications or seek clarification of certain points. The opposing   comments, proposed modifications, and requests for clarification are addressed below. We are not   persuaded that the Social Contract should be rejected, but, as noted above, we will modify and clarify it  S2-to address some of the commenters' concerns.2Z} yO,-  [ԍIn addition to the substantive modifications discussed below, the Social Contract includes ministerial and technical modifications that do not affect the meaning of the Social Contract's terms.  S-Y A. Preservation of Local Authority ă  S-18.` ` Section III.E. of the proposed Social Contract states that:  X[n]othing herein shall affect the enforceability of any otherwise valid preexisting local  franchise agreement, ordinance, local law, or regulation which provides benefits which  Pexceed those provided in the Contract relating to system upgrades or the wiring of schools  ~or libraries, nor shall LFAs [local franchising authorities] be restricted in their authority to negotiate for such additional benefits after the Effective Date.    [Section III.H. of the Social Contract discusses the Commission's authority to enforce the Social Contract   yand provides, in part, that "any failure to comply with this Contract shall not be a basis for any denial of a franchise renewal by, or other enforcement action of, any LFA."  S-  #19.` ` Some of the opposing commenters fear that the proposed Social Contract would preempt   local authority by preventing franchising authorities from enforcing franchise requirements that are  Sb-  .identical to the Social Contract requirements.b} {O$-  ԍIndianapolis at 3; Indianapolis Supplemental Comments at 12; Tallahassee/Howard County at 67. See also City of Pontiac ("Pontiac") at 1 ("the proposed contract overrides Pontiac's Franchise Authority"). They point out that Section III.E. of the Social Contract   appears to preserve local enforcement authority only with respect to local requirements that "exceed those": ,`(`(88 "  S-  >provided in the Contract . . . ."F} yOh-ԍSocial Contract Section III.E.F Similarly, they believe Section III.H. could be read to prohibit local   franchising authorities from denying a franchise renewal or taking other enforcement action in response   to Comcast's failure to complete an upgrade required by the franchise agreement if the Social Contract  S-  requires an identical upgrade.X} yO-ԍIndianapolis at 1; Indianapolis Supplemental Comments at 12; Tallahassee/Howard County at 6. One commenter claims that the Social Contract "will act as a ceiling on   Comcast's provision of services and facilities" and will weaken franchising authorities' negotiating position  S8-regarding benefits they might seek through the franchising process.R 8} yO -ԍAlliance for Community Media ("ACM") at 3.R  S-  20.` ` This is not the intent of the Social Contract. As Comcast correctly explains in its reply  S-  comments,H!x} yO -ԍComcast Reply Comments at 1618.H the Social Contract sets forth a minimum standard for system upgrades and other benefits,   jsuch as free connections and service for schools and libraries. Comcast is not precluded from voluntarily   exceeding these minimum commitments, and local franchising authorities are not precluded from enforcing   .preexisting local requirements that are less than, meet, or exceed the requirements contained in the Social   Contract. Nor are local franchising authorities precluded from enacting valid requirements now or in the   Nfuture that are less than, meet, or exceed those contained in the Social Contract or from seeking to negotiate with Comcast to formalize such requirements at the local level.  S -  B21.` ` To allay the opposing commenters' concerns, Comcast has agreed to modify the Social   Contract so that local franchising authorities' rights are more clearly stated. Section III.E. is amended to read as follows (stricken language is deleted from original):  XNothing herein shall affect the enforceability of any otherwise valid preexisting local  S- franchise agreement, ordinance, local law, or regulation which provides benefits which  S- Pexceed those provided in the Contract relating to system upgrades or the wiring of schools  Sh- or libraries, nor shall LFAs be restricted in their authority to negotiate for such additional  S@-benefits after the Effective Date." @} yO-  yԍThe new language, in final form, reads as follows: "Nothing herein shall affect the enforceability of any   Kotherwise valid preexisting local franchise agreement, ordinance, local law, or regulation which provides benefits   Zrelating to system upgrades or the wiring of schools or libraries, nor shall LFAs be restricted in their authority to negotiate for such benefits after the Effective Date."    This modification clarifies that local franchising authorities are not prohibited from taking any enforcement   kaction against Comcast, including denial of a franchise renewal, because of Comcast's failure to meet a   local requirement that is also a Social Contract requirement. Comcast agrees that the Social Contract is   not intended to shield Comcast from local enforcement action that is based on Comcast's violation of a  SP-valid local requirement.E#P } yO%-ԍComcast Reply Comments at 18.E"P #,`(`(88"Ԍ S-  22.` ` Neil Lehto argues that Comcast must obtain a telecommunications permit to provide  S-  /internet service to schools and libraries in Michigan.B$} {O@-ԍNeil Lehto (passim).B In support of his argument, Mr. Lehto cites a   Michigan I#   I# law that purportedly requires cable operator and other telecommunications service providers to  S-obtain a local franchise before they may offer telecommunications services.%Z} {O-ԍId. at 2, 4 (citing Michigan Telecommunications Act of 1995  254, Mich. Comp. Laws Ann.  484.2254).  S8-  223.` ` The applicability of the Michigan statute to any services Comcast may provide under the  S-Social Contract is outside the scope of this proceeding.&f } yO -  iԍAlthough the validity of the Michigan law is not now before us, we note that any state and local law may be   subject to challenge under Section 253 of the Communications Act, which provides that no state or local government   Jmay prohibit "the ability of any entity to provide interstate or intrastate telecommunications service." 47 U.S.C.    253(a). The Commission is empowered to preempt any state or local law or requirement that violates this provision.   47 U.S.C.  253(d). Should any franchising authority seek to enforce a local requirement that violates Section 253   of the Communications Act, Comcast or any other interested party may petition the Commission for issuance of a  {OL-  hdeclaratory ruling or an order preempting the local requirement pursuant to Section 253(d). Id. In addition, Section   621(b)(3)(B) of the Communications Act prohibits local franchising authorities from "impos[ing] any requirement   ,under this title that has the purpose or effect of prohibiting, limiting, restricting, or conditioning the provision of a  {O-  telecommunications service by a cable operator or an affiliate thereof." 47 U.S.C.  541(b)(3)(B). See generally   TCI Cablevision of Oakland County, Inc., Petition for Declaratory Ruling, Preemption, and Other Relief Pursuant  {O8-to 47 U.S.C.  541, 544(e), and 253, CSR4790, FCC 97331 (rel. Sept. 19, 1997).   S-  24.` ` Betty Ann Kane, a public official in Rehoboth Beach, Delaware, states that the word   "negotiate" as used in Section III.E. is inappropriate. She claims that local franchising authorities may   require operators to provide benefits and are not limited to only those benefits they can obtain through  SH -  negotiation.<'H } yO-ԍBetty Ann Kane at 3.< The Cities of Tuscaloosa, Alabama; Fort Wayne, Indiana; Gadsden, Alabama; Boca Raton,  S -  yFlorida; Mobile, Alabama; and Lower Merion, Pennsylvania ("Tuscaloosa, et al.") raise the same concern  S -and state that the Social Contract should explicitly preserve these rights.G( } {OD-ԍTuscaloosa, et al., at 2.G  S -  25.` ` The language of Section III.E. is not meant to eviscerate a local franchising authority's   right to require that franchise proposals contain benefits deemed appropriate by the franchising authority  SZ-  yin its evaluation of the statutory criteria governing the initial grant of a franchise and franchise renewals.)Z<} {O6!-  [ԍSee, e.g., 47 U.S.C.  541(b)(3)(D) (allowing local franchising authorities to require the incumbent cable operator to construct an institutional network as a condition of franchise grant, renewal, or transfer).   Conversely, the provision also is not meant to permit local franchising authorities to impose requirements  S -  zthey are not authorized to impose.* } {O@%-ԍSee, e.g., 47 U.S.C.  544(e) (restricting local franchising authorities' right to prescribe technical specifications). With this clarification, we do not believe further modification of Section III.E. is necessary.  S-  `26.` ` Some commenters object to the Social Contract on the basis that cities are better suited   than the Commission to determine which schools and libraries should receive free cable connections and  S-  service.+} yO-ԍCity of Fort Lauderdale ("Fort Lauderdale") at 2; Georgia Municipal Association ("GMA") at 2. The Social Contract outlines Comcast's minimum commitment. Schools and libraries are free   to decline the free connections or services, and local franchising authorities are free to require additional connections or services through the franchising process.  S-<  B. Commission Policy on Social Contracts ă  S-  27.` ` Several opposing commenters assert that the Social Contract simply rewards Comcast's   past actions and is not necessary to induce Comcast to undertake the commitments set forth in the Social  Sp-  Contract.,pX} yOh -   ԍPontiac at 1; Sacramento Metropolitan Cable Television Commission ("Sacramento") at 45; Tallahassee/Howard County at 46. The commenters maintain that Comcast has already completed some of the required upgrades,   is already required by franchise agreements to complete upgrades to 550 or 750 MHz and offer   connections and service to schools and libraries, has made other public commitments to complete upgrades   /and offer connections and service to schools and libraries, and has already incorporated an aggressive  S -  zupgrade schedule into its preexisting business plan.- } yO -  ԍSacramento at 4; Tallahassee/Howard County at 45; ACM at 67; City of Detroit ("Detroit") at 57; Fort   Lauderdale at 2; Indianapolis at 1; Chesterfield County at 1; Tallahassee/Howard County Reply Comments at 12.   Voluntary public commitments cited by these commenters include those made through the President's Summit on  {Ox-  America's Future and the Prosperity New Jersey initiative. See Tallahassee/Howard County Reply Comments at 12.  {OB-  See also GMA at 1 ("the Social Contract does not require Comcast to provide any service that franchising authorities do not or cannot require as a term of the grant of the franchise"). One commenter states that the Social Contract   provisions governing internet service to schools and libraries do not confer a meaningful benefit because   [the Universal Service Fund will be available to fund the wiring of schools and libraries and their purchase  SX-  of internet access service.."X, } yO$-  ԍSacramento at 56. Sacramento complains that the Social Contract "will actually impose higher costs" on   schools and libraries because Comcast's offer to provide connections for free or at its own cost might be more   expensive for schools and libraries than it would be for them to obtain this service from other providers, using  {O|-discounted rates made possible by the Universal Service Fund. Id. Some commenters complain that their own communities or others will receive  S0-  jno benefits under the Social Contract but nevertheless may experience a rate increase./x0} yO-  ԍSacramento at 36; Fort Lauderdale at 12; Town of Palm Beach ("Palm Beach") at 12; Detroit at 56; GMA   + at 12; Tallahassee/Howard County at 67; Pontiac at 1; Betty Ann Kane at 2. Sacramento and Detroit state that they   have already required Comcast to upgrade the systems serving their communities and provide the other benefits   iincluded in the Social Contract. Fort Lauderdale and Palm Beach claim that Comcast has indicated that it has no   Kplans to upgrade their systems under the Social Contract. GMA states that franchising authorities could gain the   benefits of the Social Contract on their own through the franchise renewal process. Sacramento and ACM contend that the Social Contract is void for lack of consideration. Sacramento at 7; ACM at 6. The commenters"0 V/,`(`(88"   also contend that the Social Contract does not freeze current rates and, through the MPT and NPT  S-provisions, permits Comcast to move existing services to a flexiblerate tier.0} yO@-  ԍSacramento at 23; Pontiac at 1; Fort Lauderdale at 1 (stating that Comcast will move its most popular services to the MPT and then will increase rates for those services when the MPT is converted to an NPT).  S-  228.` ` In response to these arguments, Comcast states that, outside of the Social Contract, it has  S`-  Mnever been required to provide free modems and internet access to schools or public libraries.D1` } yO -ԍComcast Reply Comments at 6.D Even   where it already is committed to making upgrades, Comcast adds, it would not be obligated to continue  S-  \upgrading its systems on a given schedule absent the Social Contract.82} {O` -ԍId. at 21.8 Comcast also points out that   Commission policy does not mandate that rates be frozen in connection with incentive upgrade plans and   .that the Commission has already determined that MPT and NPT provisions similar to those included in  S-  =the Social Contract are in the public interest.D3B} {Oz-ԍId. at 13 n.39, 2223.D Comcast further notes that under the Commission's rules   it can already freely add services to existing tiers and that the rate increases it would be permitted to   =implement in connection with the addition of channels to an MPT are the same as the increases it would  S -be permitted to implement upon the addition of channels to an existing tier.<4 } {O-ԍId. at 12, 22.<  S -  29.` ` We agree with Comcast and do not believe the opposing commenters' arguments justify  S -  rejection or modification of the Social Contract. The Social Contract will confer valuable benefits on   Comcast systems, including systems serving communities that have independently required Comcast to   upgrade their systems and/or provide connections, equipment, and service to schools and libraries.   [Although Comcast may have chosen voluntarily to upgrade systems and provide benefits to schools and   libraries, and some local franchising authorities already may require Comcast to undertake such actions,   the Social Contract binds Comcast to continue to make significant upgrades throughout its systems. It   =provides a firm completion deadline and a federally enforceable upgrade commitment. Absent the Social   jContract, Comcast could cancel or delay completion of planned system upgrades not otherwise required.   Moreover, the Social Contract applies to all of Comcast's systems, not just those systems that are subject   =to locally imposed requirements. Communities that have not already required Comcast to provide these   benefits will obtain them automatically through the Social Contract. Those local franchising authorities   that have already required system upgrades or other benefits will not be disadvantaged. The Social   1Contract makes clear that local franchising authorities can enforce or impose otherwise lawful   requirements that meet or exceed the upgrade benefits of the Social Contract. In addition, schools and  Sx-  ylibraries are free to decline the cable connections, equipment, and services Comcast is obligated to offer.5xf } yO~#-  ԍThe Social Contract provides that these benefits will be made available upon request by the eligible schools and libraries. Social Contract Sections III.D.1.2. They will not be forced to forego other options that they deem preferable. "( 5,`(`(88"Ԍ S-  30.` ` The Social Contract permits Comcast to migrate up to four existing services from an   ]eligible system's BST and CPST to an MPT, which can be converted to an NPT. Our regulations   governing NPTs prohibit the immediate migration of certain programming from existing regulated tiers  S-  to an NPT.I6X} yO-  hԍOperators may not drop channels that were offered on their BSTs or CPSTs on September 30, 1994, and move   Ythem to NPTs unless they wait at least two years after the channels were dropped before they place the channels on an NPT. 47 C.F.R.  76.987(b)(2).I The purpose of this prohibition is to ensure that BSTs and CPSTs remain competitive with  S`-  >NPTs so that NPT rates will be reasonable.7(`} {O-  ԍImplementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992: Rate  {O -  <Regulation, MM Docket Nos. 92266 and 93215, Sixth Order on Reconsideration, Fifth Report and Order, and  {O| -  Seventh Notice of Proposed Rulemaking, 10 FCC Rcd 1226, 123538 (1994), aff'd, Adelphia Communications Corp.  {OF -v. FCC, 88 F.3d 1250 (D.C. Cir. 1996). Our regulations also prescribe specific procedures and  S8-restrictions related to the addition of channels to tiers and accompanying rate increases.M88} yO -ԍ47 C.F.R.  76.922(e)(3)(ii), (g).M  S-  Q31.` ` The Commission has authority to waive its rules if there is good cause to do so.;9h } yO-ԍ47 C.F.R.  1.3.; The   Commission may exercise its discretion to waive a rule where particular facts would make strict  S-  compliance with the rule inconsistent with the public interest.: } {O0-  ԍNortheast Cellular Telephone Co., L.P. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990) (citing WAIT Radio v.  {O-FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969)). We find good cause to waive the channel   Lmigration provisions of our NPT rules and our regulatory provisions governing changes in the number of   channels on a regulated tier as such provisions relate to the MPT and NPT provisions of the Social   yContract. To the extent necessary to effectuate the terms of the Social Contract, we are waiving Sections   k76.922(e)(3)(ii) and (g) of the Commission's rules as they affect the migration of channels to an MPT   under the terms of the Social Contract, as well as Section 76.987(b)(2) and (b)(3), which (i) prohibits an   operator from dropping channels that were offered on its BST or CPST on September 30, 1994, and   moving them to NPTs unless it waits at least two years from the dates the channels were dropped and (ii)  SX-requires the operator to remarket its services when it creates an NPT.i;XT } yOL-ԍ47 C.F.R.  76.922(e)(3)(ii), 76.922(g), 76.987(b)(2)(3).i  S-  _32.` ` We have previously waived these rules in connection with the adoption of MPT and NPT  S-  zprovisions that are nearly identical to those included in the Social Contract.*<} {Od!-  ԍSee, e.g., Continental Amended Social Contract, 11 FCC Rcd at 11150; Garden State Cablevision, L.P., 11 FCC  {O."-Rcd 7327, 7332 (1996); Cablevision Industries Corp., 11 FCC Rcd 7341, 7349 (1996).* We have found that the   conditions applicable to such MPTs and NPTs will ensure that rates for existing services are reasonable   .and that the creation of MPTs and their conversion to NPTs will increase subscriber choice and will not" @<,`(`(88"  S-  constitute a fundamental change in the nature of existing services.=^} {Oh-  ;ԍSee, e.g., Time Warner Social Contract, 11 FCC Rcd at 2817; Continental Social Contract, 11 FCC Rcd at 329;  {O2-  TCI Communications, Inc., Final Resolution of Cable Programming Service Rate Complaints, 11 FCC Rcd 14696,  {O-1470809 (1996) ("TCI Rate Resolution"). Where we have previously waived   our rules to allow the creation of MPTs convertible to NPTs, we have done so in the context of social   contracts and rate resolutions that included subscriber benefits that otherwise would not have been  S-available.V>} {O-ԍSee cases cited supra notes 6061.V  S8-  n 33.` ` Our reasons for previously granting the waivers necessary to permit the creation of MPTs   and their conversion to NPTs are equally applicable here. We conclude that a waiver of our rules is appropriate in the overall context of the Social Contract and is in the public interest.  S-  !34.` ` First, Comcast's authority to create MPTs under the Social Contract is limited. Comcast   >will be permitted to create MPTs only on those systems that are not already authorized by the Rate  SH -  Resolution to offer MPTs and that do not currently offer an NPT that was created as the result of a la  S" -  carte packaging. Second, as we have concluded in approving similar provisions in other social contracts   and rate resolutions, the creation of MPTs and NPTs under the Social Contract will expand the   programming choices for subscribers and will not expose subscribers to unreasonable rates. In addition,   the creation of MPTs and NPTs under the Social Contract will increase the choices available to subscribers   /because they need only buy the BST in order to select service on the MPT or NPT; they will not be   required to purchase any other tier in order to obtain MPT/NPT service, nor are they required to purchase an MPT or NPT. Subscribers will not be forced to receive and pay for unwanted services.  S-  "35.` ` Consistent with the rate principles articulated in the Cost Order, the services migrated to   [the MPT will continue to be priced at the regulated rate until January 1, 1998, and channels added to the   MPT prior to that date will be priced at a level that we have found to be reasonable in other social  Sn-  .contracts and rate resolutions.?~n} {O-  ԍSee, e.g., Time Warner Social Contract, 11 FCC Rcd at 281517; Continental Social Contract, 11 FCC Rcd  {OX-  at 32829; TCI Rate Resolution, 11 FCC Rcd at 1470609; Comcast Rate Resolution, 11 FCC Rcd at 4031, 4038,   404243. The permitted perchannel rate increase of $0.20 also tracks our existing regulations governing channel  {O-  additions. See 47 C.F.R.  76.922(g)(3) (until December 31, 1997, operators may increase rates by $0.20 per   additional channel, plus programming costs, subject to a cap of $1.40 per subscriber per month for all such rate   increases between January 1, 1995, and December 31, 1997). The Social Contract does not impose a cap on MPT  yOD-channel additions and associated rate increases and in this respect is less restrictive than our regulations.  The rates for the regulated tiers from which programming was migrated  SF-  >will be reduced to reflect the deletion of those services from the regulated tiers.\@\F } {O!-  ԍSee Comcast Reply Comments at 11 & n.34. This addresses the concern expressed by GMA and the Cable   Authority of Paducah, Kentucky ("Paducah"), that Comcast might be permitted to double charge for migrated  {O>#-channels. See GMA at 2; Paducah at 1.\ MPT rates may be   increased only if Comcast adds additional services to the tier, which would increase its value to the   subscriber. Subscribers are not required to purchase any tier except the BST to obtain an MPT or NPT" @,`(`(88"  S-  {under the Social Contract,3AZ} {Oh-  ԍOur regulations prohibit socalled buythrough requirements with respect to NPTs. See 47 C.F.R.     76.987(b)(4). The Social Contract prohibits buythrough requirements with respect to MPTs. Social Contract Section III.B.1.a.3 and they will be free to choose any tier above the BST, or all of them,   depending on their assessment of the relative value of the different tiers. Should Comcast elect to convert   the MPT into an NPT, then the prohibition against buythrough requirements will ensure that the product   !offerings and rates on the NPT are competitive with the regulated BSTs and CPSTs. Otherwise,  S`-  zsubscribers would elect not to subscribe to the NPT . Furthermore, Comcast will have an incentive to   maintain the quality of the service offerings on its existing CPSTs to avoid losing revenue, because   subscribers perceiving a decrease in quality in an existing CPST may discontinue that service in favor of the MPT or NPT.  S-  P#36.` ` Because the services migrated to an MPT will be services subscribers are already receiving   yand because they will be priced on a perchannel basis at regulated rate levels, the creation of MPTs does   =not constitute a fundamental change in the nature of existing services, and Comcast's automatic inclusion   zof an MPT in a subscriber's programming package will not constitute negative option billing, which is  S -  prohibited.B } {O-  ԍSee 47 C.F.R.  76.981 (cable operators may not charge subscribers for services or equipment they have not   affirmatively requested). The prohibition against negative option billing does not apply to the addition or deletion   of specific programs from a service offering; the addition, deletion, or substitution of channels; or any retiering of   ,services, "provided that such changes do not constitute a fundamental change in the nature of an existing service or  {O-tier of service and are otherwise consistent with applicable regulations." Id.İ For the same reason, when Comcast creates an MPT or converts an MPT to an NPT, it will not be required to remarket its services.  S - ? C. Specificity ă  S0-  #$37.` ` Some commenters complain that the Social Contract does not specify which systems will  S-  receive upgrades, and at what level, or which libraries will receive cable connections and internet service.C} {OF-ԍSacramento at 6; Detroit at 78; Pontiac at 1; Betty Ann Kane at 2; Tuscaloosa, et al., at 2.   These commenters point out that subscribers on systems that do not receive upgrades pursuant to the   Social Contract may nevertheless be subject to rate increases as a result of Comcast's creation of MPTs  S-  and NPTs.D0 } yO`-  xԍGMA at 2; Fort Lauderdale at 1; Palm Beach at 2; Pontiac at 1; Detroit at 8; Tallahassee/Howard County at 78. They assert that this result would constitute crosssubsidization between different classes of   subscribers to the detriment of those subscribers that do not receive service on upgraded systems. The   premise of this argument is that Comcast will finance its upgrades through rate increases imposed through  S-the creation of MPTs and their later conversion to NPTs.E } {O@#-  ԍSee, e.g., Tallahassee/Howard County at 78 (the Social Contract benefits do not "justify the privilege of increasing rates through unlimited unregulated tiers"). "E,`(`(88%"Ԍ S-  %38.` ` Comcast objects to any requirement that it specify the details of its system upgrades under  S-  zthe Social Contract.HF} yO@-ԍComcast Reply Comments at 1819.H Noting that as recently as two years ago the commercial viability of high speed   modem service was not foreseen, Comcast explains that it cannot commit at this time to upgrade particular  S-  .systems.8GX} {O-ԍId. at 19.8 Comcast denies that the Social Contract will result in crosssubsidization and asserts that all  S`-systems will benefit from the Social Contract.;H`} {O-ԍId. at 2022.;  S-  #&39.` ` We believe the flexibility of the Social Contract's upgrade provisions is essential to enable   ?Comcast to respond to the rapid pace of technological change. Comcast is in the best position to   ydetermine whether a particular upgrade is economically viable. Requiring Comcast to specify now which   jsystems it will upgrade would not affect the level of the benefits subscribers will receive under the Social   Contract. Because of changing business conditions and technological developments, such requirement   would unnecessarily bind Comcast to an upgrade plan that ultimately may not be viable for Comcast or beneficial to its subscribers.  S -  #'40.` ` Even without a specific listing of which systems will be upgraded and which libraries will   lreceive the Social Contract benefits, local franchising authorities will be able to monitor Comcast's   =progress in fulfilling its obligations. The Social Contract requires Comcast to submit to the Commission   an annual progress report that describes how it has met the Social Contract requirements. Local   [franchising authorities will be able to review the annual report to assess whether Comcast has completed   kthe required upgrades and deployed the other benefits of the Social Contract. By March 31, 1999, or   ?shortly thereafter, franchising authorities will know whether Comcast has met its overall upgrade   commitment and can determine whether Comcast is obligated to issue refunds related to its creation of   MPTs on systems that did not meet the minimum technical requirements of the Social Contract. In  Sh-  response to the concerns of several commenters,Ih|} yO-ԍIndianapolis at 2; Indianapolis Supplemental Comments at 4; Tallahassee/Howard County at 9. Comcast has agreed to make a copy of the annual report   available in the public files of each of its systems within 30 days after it files the report with the   Commission. Within 60 days after the Effective Date of the Social Contract, Comcast will notify local   franchising authorities that the report will be made available in this manner. The Social Contract has been  S-modified to include these procedures.J } yOt-ԍThe following sentence has been added to Section III.A.2. of the Social Contract:  "XNo later than sixty (60) days after the Effective Date Comcast will serve a notice on all affected  LFAs to advise them that a copy of the annual progress report that Comcast provides to the  ACommission will be placed in each cable system's public inspection file within thirty (30) days after it is filed with the Commission.  " J,`(`(88"Ԍ S-  B(41.` ` Some local franchising authorities sought clarification as to whether Comcast would be  S-  permitted to create MPTs on the systems serving their communities.K} {O@-  iԍChesterfield County at 1; Paducah at 1. See also Village of Payne at 1 (seeking general clarification of how the Social Contract will affect local subscribers); Charter Township of Flushing at 1 (same). Comcast has agreed to modify the   proposed Social Contract so that the systems on which Comcast may create MPTs are more easily  S-  identifiable.JL"} yOJ-ԍSocial Contract Section III.B.1.e.J The modified language clarifies that Comcast may create an MPT only on systems that   were not allowed an MPT under the Rate Resolution and on systems that do not offer an NPT in the form  S8-  of an a la carte package. As revised, this section reads as follows (stricken text is deleted from the original language; underscored text is added):  S- X The provisions of Section B.1.a. shall not be applicable where a Comcast system already  2offers an MPT which is convertible to an NPT or where an NPT already exists as a result  Sr- of a la carte packaging. Comcast will not create an MPT or NPT pursuant to Section  SJ - #B.1.a. in systems that already have an NPT created through a la carte packaging or where  S$ - a system was permitted to create an MPT pursuant to Comcast's rate resolution, In the  Matter of Comcast Communications, Inc. Final Resolution of Cable Programming  S -Service Rate Complaints, 11 FCC Rcd 4029 (1995).    MComcast states that any system that offers a tier marketed as "ValuePac" will not meet the eligibility  S`-  standards.3MX`} yO-  ԍLetter from Peter H. Feinberg, attorney for Comcast Communications Inc., to John Norton, Federal   Communications Commission, Cable Services Bureau (Aug. 11, 1997). A copy of this letter has been placed in the Commission's public files.3 With this information and the modified Social Contract language, local franchising authorities   =and system managers should be able to determine readily whether Comcast is permitted under the Social  S-  Contract to create an MPT on any given system.N} yO-  ԍFor example, it appears that Comcast would not be permitted under the Social Contract to create an MPT in  {OJ-Chesterfield County, where Comcast currently offers a ValuePac. See Chesterfield County at 1. In addition, the Social Contract requires that fully 80%   of Comcast's subscribers will have 550 MHz service and 55 regulated channels by March 31, 1999.   .While the Social Contract does not specify which systems will receive such service, it does provide that   .in any system in which Comcast fails to provide 550 MHz service with 55 regulated channels, Comcast   zmust refund any revenues generated from an MPT or NPT that exceed revenues Comcast would have   earned based on the maximum permitted rates it could have charged had it not been permitted to create  S -MPTs and NPTs.JO , } yO -ԍSocial Contract Section III.B.1.d.J  S-| D. Commission Jurisdiction ă  S-  )42.` ` The opposing commenters also contend that the Commission does not have jurisdiction  SX-  [to enter into social contracts or to mandate technical requirements.PX } yO&-ԍDetroit at 3; Tallahassee/Howard County at 24; Tallahassee/Howard County Reply Comments at 3. Tallahassee/ Howard County allege   that the Commission does not have jurisdiction to take any action not explicitly authorized by Title VI"0L P,`(`(88"  S-  .of the Communications Act, which does not explicitly authorize social contracts.IQ} yOh-ԍTallahassee/Howard County at 24.I Tallahassee/Howard   County aver that even if the Communications Act could be construed to authorize social contracts, the   Commission has no authority to regulate CPST rates except upon the filing of a complaint, and therefore,  S-  they argue, the Comcast Social Contract is defective because it does not resolve CPST complaints.9RX} {O-ԍId. at 34.9 Other   Lcommenters add that local franchising authorities are better suited than the Commission to determine the  S8-needs of their local communities.IS8} yO -ԍGMA at 2; Fort Lauderdale at 12.I  S-  *43.` ` We reject the argument that the Commission lacks jurisdiction to enter into social   contracts. The Commission has broad authority to regulate the rates and services offered by cable   operators and is not limited to the powers specifically enumerated in Title VI of the Communications Act.   Section 4(i) of the Communications Act authorizes the Commission to "perform any and all acts, make   such rules and regulations, and issue such orders, not inconsistent with this Act, as may be necessary in  S -  the execution of its functions.">T z} yO:-ԍ47 U.S.C.  154(i).> Section 4(j) provides that "[t]he Commission may conduct its   proceedings in such manner as will best conduce to the proper dispatch of business and to the ends of  S -justice.">U } yOz-ԍ47 U.S.C.  154(j).> Social contracts clearly fall within this broad grant of authority.  S -  `+44.` ` Further, contrary to the commenters' assertions, Title VI of the Communications ActLV } {O-ԍ47 U.S.C.  521 et seq.L   provides a specific jurisdictional foundation for social contracts. Section 623(c) of the Communications   .Act directs the Commission to ensure that rates for CPST services are not unreasonable and to establish  S-  criteria for identifying unreasonable rates.>W, } yO-ԍ47 U.S.C.  543(c).> Congress did not mandate a particular method for identifying   \unreasonable rates but left this matter to the Commission. The Commission fulfilled its obligation to  S-  specify such criteria when it adopted rules governing CPST ratesqX } {O-ԍSee, e.g., 47 C.F.R.  76.922, 76.924, 76.925, 76.934.q and when it determined in the Cost  S-Order that flexible rate treatment could be justified as part of an upgrade incentive plan.LYN } {O!-ԍCost Order, 9 FCC Rcd at 4678.L  SD-  P,45.` ` The Commission's authority to enter into the Social Contract is also founded on its power  S-  to grant waivers of its rules and regulations upon a showing of good cause.EZ} {O%-ԍSee 47 C.F.R.  1.3.E The finding of good cause   jmay be tied to conditions imposed on the beneficiary of the waiver. Comcast seeks a waiver of our rules   =governing channel migration and channel additions to permit it to create MPTs and later convert them to"rZ,`(`(88Q"   lNPTs. This is the only benefit Comcast will gain from the Social Contract. As a condition to the   granting of the requested waivers, the Commission and Comcast have agreed that Comcast will pursue   an aggressive upgrade schedule and fulfill its other obligations under the Social Contract. This is the premise of the Social Contract.  S8-  -46.` ` We do not agree that our authority to enter into social contracts is tied to the concurrent   resolution of CPST complaints. Although our first two social contracts did resolve CPST complaints, we   did not contemplate the resolution of rate complaints as a feature of upgrade incentive plans when we first   introduced this concept, and our initial public interest determination in authorizing upgrade incentive plans  S-  was not premised on the concurrent resolution of rate complaints. We made this clear in the Second  Sr-  LReport and Order, First Order on Reconsideration, and Further Notice of Proposed Rulemaking in MM   ]Docket No. 93215 and CS Docket No. 9428, stating that we have not limited social contracts to  S$ -  operators that are the subject of pending rate proceedings.T[$ } {O -ԍSecond Cost Order, 11 FCC Rcd at 2282.T Thus, we reject the argument that the Comcast Social Contract is deficient because it does not resolve CPST complaints.  S -  `.47.` ` We also reject the argument that we lack jurisdiction to mandate technical requirements   and that, therefore, we should not adopt the Social Contract. We are not mandating that Comcast meet   any technical requirements. Rather, we have concluded that Comcast's proposal to meet certain technical standards is appropriate in the overall context of the Social Contract.  S-\; E. Enforcement ă  S-  %/48.` ` Several opposing commenters claim that the enforcement mechanisms in the Social   zContract are inadequate. They argue that the Social Contract should be amended to include additional   jpenalties for Comcast's failure to perform its obligations, or that local franchising authorities should have  S-  a role in the enforcement of the Social Contract.\Z} yO-  ԍState of New Jersey Ratepayer Advocate ("Ratepayer Advocate") at 6; Tallahassee/Howard County at 9; Sacramento at 8. Tallahassee/Howard County state that the enforcement   provisions should not terminate on March 31, 1999, but instead should survive for five years from the  S-Effective Date, when Comcast's home wiring and schools and libraries obligations terminate.]} {O-  ԍTallahassee/Howard County at 9. See also Indianapolis at 2 ("What enforcement is the FCC planning to conduct if Comcast does not meet its educational commitments . . . ?"); Indianapolis Supplemental Comments at 4.  S|-  049.` ` The Social Contract gives the Commission ample discretion to enforce its terms. No   further enforcement mechanisms are necessary. Among other things, the Social Contract requires Comcast   to provide refunds of MPT/NPT charges, plus interest, if it does not complete the required upgrades prior  S-  to March 31, 1999.C^X } yO#-  ԍSocial Contract Section III.B.1.d. The minimum required capacity for systems on which Comcast creates an   MPT under the Social Contract is 550 MHz. Such systems must offer at least 55 regulated channels of service. Social Contract Section III.B.1.a.C In addition, the Commission is empowered by the Communications Act and its   regulations to impose fines and forfeitures on companies that violate valid Commission orders, and the", ^,`(`(88="  S-  Social Contract explicitly recognizes this authority.w_} yOh-ԍ47 U.S.C.  501504; 47 C.F.R.  1.80; Social Contract Section III.H.w The expiration of most of the terms of the Social   MContract on March 31, 1999, including the specific enforcement provisions in Section III.H., will not   affect the Commission's ability to enforce Comcast's compliance with its obligations regarding home   Nwiring and benefits for schools and libraries, which expire after that date. If Comcast breaches its   agreement to comply with such terms after March 31, 1999, Comcast's action will be a violation of this   Order, which incorporates the terms of the Social Contract, and we will be entitled to impose fines and   forfeitures on Comcast pursuant to our statutory and regulatory authority. This is the purpose of the  S-  NSocial Contract provision stating "Comcast agrees to continue to comply with Section III.D. [i.e.,   provisions governing home wiring and benefits to school and libraries] for five years after the Effective  S-  Date."F`X} yO -ԍSocial Contract Section III.I.F Moreover, the Social Contract requires Comcast to report annually to the Commission regarding  Sr-  its progress in fulfilling its upgrade obligations.Har} yO -ԍSocial Contract Section III.A.2.H Local franchising authorities will have access to these reports and can monitor Comcast's compliance.  S -  %150.` ` Because the Social Contract is between the Commission and Comcast, and is being   /adopted through a Commission order, local franchising authorities have no jurisdiction to enforce the   Social Contract. Local authorities may freely enforce any valid requirements they have independently   .imposed on Comcast. To the extent that franchising authorities or other interested parties disagree with   Comcast's interpretation of any provision of the Social Contract, perceive a lack of enforcement of its   terms and conditions, or disagree with the remedies we may prescribe, they may seek redress before the Commission.  S-N  F. Additional Upgrades and Expanded Public Benefits ă  Sj-  251.` ` Some commenters assert that the Social Contract should be modified to require a greater  SB-  iupgrade commitment by Comcast.bBx} yOZ-  [ԍBetty Ann Kane at 23 (all systems should be upgraded to at least 550 MHz, and all communities should   receive all of the benefits of the Social Contract); ACM at 10 (Comcast should provide fibertothehome   Zinfrastructure in 50% of its systems by 2000 and in 100% of its systems by 2005). ACM claims that the June 9,   1997 announcement by Microsoft, Inc., that it would invest $1 billion in Comcast justifies this greater level of   commitment. ACM at 34, 7. ACM argues that the Social Contract should be amended to require benefits that  {OB-substantially exceed those Comcast already provides or is already required to provide. Id. at 1, 46. ACM states that the Commission should obtain additional information  S-  from Comcast before we adopt the Social Contract.cZ } yO!-  ԍACM at 45. In particular, ACM contends that Comcast should provide copies of all of its currently effective   ilocal franchise agreements or ordinances, detailed information on the technical status of each of its systems, and  {O<#-information on services Comcast currently provides to schools and libraries. Id.Ĕ Other commenters assert that all schools and   \libraries, regardless of their distance from Comcast's activated plant, and all classrooms in all schools,"c,`(`(88%"  S-  should receive free connections and service.dZ} {Oh-  ,ԍRatepayer Advocate at 23, 6; Indianapolis at 1. See also Betty Ann Kane at 2 ("The number of libraries and   schools slated to receive free service is inadequate"); ACM at 10 (Comcast should provide cable hookups to "all K12 schools, public libraries, and public colleges and universities within one mile of a system's plant"). The State of New Jersey Ratepayer Advocate ("Ratepayer   Advocate") adds that schools and libraries should receive their free internet connections and service as  S-  soon as Comcast deploys internet service commercially, not one year later.ee} yO:-  wԍRatepayer Advocate at 34. The Ratepayer Advocate also states that schools and libraries should receive these  {O-  Jbenefits before Comcast creates MPTs. Id. at 4. The Ratepayer Advocate misinterprets the Social Contract in this   respect. Comcast's obligation to provide the stated benefits to schools and libraries is not tied to its creation of   MPTs. Comcast is obligated to provide these benefits, upon request by eligible schools and libraries, even if it does not create any MPTs.e The City of Indianapolis   Cable Communications Agency ("Indianapolis") contends that Comcast should conduct an outreach   program to ensure that schools and libraries are aware of their right to request free connections and  S8-  service.cf8} yOt-ԍIndianapolis at 2; Indianapolis Supplemental Comments at 3.c ACM urges us to amend the Social Contract to require Comcast to construct an institutional   =network on all systems in which Comcast increases rates pursuant to the Social Contract and to provide   public, educational, and governmental ("PEG") channel capacity, services, facilities, and equipment on  S-each of its systems.gZ, } yO-  ԍACM at 910. ACM proposes that Comcast provide the foregoing PEG access benefits for a minimum of ten  {OT-  Kyears at a level equal to $5.00 per subscriber per year. Id. at 10. We note that no local franchising authority or other commenter suggested that Comcast undertake these additional commitments.  Sp-  352.` ` In response, Comcast asserts that, contrary to the suggestions of opposing commenters,   the Social Contract benefits exceed Comcast's existing obligations. According to Comcast, it has never  S -  previously agreed or been required to provide free internet access to public libraries.Dh N } yO-ԍComcast Reply Comments at 6.D Comcast adds that   .it cannot commit to provide internet service to schools and libraries less than one year after such service   is deployed commercially because its past experience with the rollout of new services has shown that  S -  delays in implementing new technology are common.;i } {O&-ԍId. at 2425.; It would not be practical, Comcast asserts, to  S -  /attempt to meet an expedited deployment schedule for internet service to schools and libraries.1j p} {O-ԍId.1 In   response to the comment regarding the need for outreach efforts, Comcast points out that it is already   !notifying schools and libraries of their right to request the benefits of the Social Contract and has  S-publicized the Social Contract through various means.8k} {O#-ԍId. at 24.8  S-  R453.` ` The upgrade and other technical commitments Comcast has agreed to undertake are   substantial, and we do not believe additional requirements are necessary to justify the limited benefits   Comcast will receive under the Social Contract. In exchange for the right to create MPTs and NPTs on"hk,`(`(88"   Msome of its systems, Comcast has agreed to upgrade the cable plant on virtually all of its systems, to   enhance subscribers' control over their inside wiring, to provide free connections and cable service to all   schools within 200 feet of its activated plant on all of its systems, to provide free connections to a   [minimum of 250 public libraries throughout its service areas, and to provide free cable modems and highspeed internet service to all connected schools and libraries in its service areas.  S-  554.` ` Although the Social Contract does not require Comcast to upgrade all its systems to a   minimum level, the sole benefit available to Comcast under the Social Contract the right to create MPTs   ԩ is contingent on Comcast's ability to meet the minimum standard of 550 MHz of capacity and 55   regulated channels of service. The Social Contract is not intended to force Comcast to undertake upgrades   that are not economically viable, and Comcast is free to forego the MPT benefit with respect to any   system. Even systems that are not upgraded to 550 MHz will benefit from the other aspects of the Social Contract.  S -  655.` ` In addition, the Social Contract cannot, and is not intended to, provide benefits to every   institution that desires them. It nevertheless brings new and improved educational opportunities to public   jand private schools. Comcast will bear the cost of providing the required cable connections and services,   =and it will not seek to recover such costs through its rates. The benefits of the Social Contract are broad   and will help many schools that lack access to Comcast's services. Even schools and libraries that,  S-  because of their distance from Comcast's activated plant, are not eligible for free cable connections will  S-  >benefit from the Social Contract because they will be able to obtain connections at Comcast's cost.l} {OH-  ԍSee Social Contract Section II.C. ("`Cost' means actual dollars used to purchase or acquire materials as documented on invoices, statements, canceled checks, etc.")   Comcast also will offer additional outlets at cost in schools that request them, and Comcast will fully wire   any school and install outlets in each classroom at no charge if it is requested to do so and the school is   =being overhauled or newly constructed. The benefits to schools and libraries are significant even if other  S@-options exist for these institutions to secure internet access.m"@"} yO-  ԍOne such alternative, as noted above, is the Universal Service Fund, which provides funding to service   /providers to enable them to offer discounted services to schools and libraries that meet certain eligibility  {O-  hrequirements. See 47 U.S.C.  254(h); 47 C.F.R.  54.500 et seq. The Social Contract, in contrast, guarantees that eligible schools and libraries will receive connections and service at no cost.  S-  o756.` ` We agree that schools and libraries in Comcast's service areas should be apprised of the   benefits that are available to them under the Social Contract. In light of Comcast's representations in its   reply comments that it is already notifying schools and libraries of their right to request cable connections   and service, we believe it is not necessary at this time to require Comcast to conduct an outreach program.   The many comments in support of the Social Contract that we have received from schools and libraries attest to the efforts Comcast has already undertaken.  S- B# G. NonDiscrimination ă  S-  B857.` ` Betty Ann Kane states that the Social Contract does not guarantee that small and rural   communities will receive the benefits of the Social Contract because Comcast's upgrade obligation is   =stated in terms of the number of subscribers, rather than the number of systems, that will be affected by"8 m,`(`(88 "  S-  the upgrade requirements.<n} yOh-ԍBetty Ann Kane at 2.< She says Comcast could fulfill its obligation by upgrading only its largest   zsystems, which could leave subscribers on smaller systems without any of the system improvements   required by the Social Contract. Ms. Kane proposes that the percentage requirements in the Social  S-  Contract be recast as a percentage of all of Comcast's systems, instead of a percentage of subscribers.1oX} {O-ԍId.1   She maintains that this would restrain Comcast from bestowing the benefits of the Social Contract   jprimarily on large systems with many subscribers and would induce Comcast to include smaller systems  S-  in its upgrade plans.1p} {O -ԍId.1 Ms. Kane notes that subscribers in Rehoboth Beach, Delaware, and surrounding   Mareas cannot receive overtheair television and have "identified high rates and rate increases, frequent  S-outages, and limited programming as their primary concerns with the current Comcast franchise."7q|} {O -ԍId. at 1.7  Sp-  A958.` ` The City of Detroit ("Detroit") is also concerned about the possibility that certain classes  SH -  =of subscribers will not receive all of the benefits of the Social Contract.5rH } yO-ԍDetroit at 8.5 Detroit states that in planning   yits upgrades and the deployment of internet service, Comcast might exclude systems or neighborhoods in economically depressed areas.  S -  :59.` ` It is important to ensure that subscribers in economically disadvantaged areas are not left   behind in the information revolution. In response to the comments of Ms. Kane and Detroit, Comcast has   zagreed to modify the Social Contract to provide that it will not discriminate among its systems on the   basis of the socioeconomic status of a system's subscribers in determining which systems will receive  S-  upgrades.;sX} yOF-  ;ԍSection III.A.1. of the Social Contract will be modified to add the following language at the end of the section:   "Comcast will distribute its system upgrade efforts so as not to discriminate among subscribers based on socioeconomic status."; This modification is similar to provisions we have included in other Social Contracts.t } {Of-  ԍSee Time Warner Social Contract, 11 FCC Rcd at 2863 (Social Contract Section III.F.1.); Continental Social  {O0-Contract, 11 FCC Rcd at 363 (Social Contract Section III.E.3.).   Although the modification may not address all of Ms. Kane's concerns with respect to small and rural   ysystems, all systems will enjoy some benefit from the Social Contract even if they do not receive system upgrades.  S@-D% H. Procedural Matters ă  S-  2;60.` ` Sacramento claims that our adoption of the Social Contract violates the due process rights   of Comcast's subscribers because local franchising authorities and subscribers did not have the opportunity   .to participate in the development of the proposed Social Contract before the Commission released it for"t,`(`(88"  S-  public comment.:u} yOh-ԍSacramento at 78.: Sacramento also maintains that Comcast was required by the guidelines set forth in  S-  the Cost Order to provide the proposed Social Contracts to franchising authorities for their review and  S-comment before it submitted the proposal to the Commission.lvX} {O-ԍId. at 7 (citing Second Cost Order, 11 FCC Rcd at 2283).l  Sb-  ~<61.` ` We do not agree with Sacramento. We have previously determined that our procedures  S:-  for soliciting public comment on proposed social contracts justify a waiver of the Cost Order to the extent   it requires cable operators to submit proposed social contracts to local franchising authorities before they  S-  submit their proposals to the Commission.w} {Ov -  ԍTime Warner Social Contract, 11 FCC Rcd at 280910; Continental Social Contract, 11 FCC Rcd at 331.   xWhere, as here, many local franchising authorities would be affected by a proposal, we have found that it is more   efficient for the Commission to negotiate a proposal with the operator and then seek public comment than for the   joperator to negotiate separately with each local franchising authority before the proposal is submitted to the  {O-Commission. Continental Social Contract, 11 FCC Rcd at 331. While we do not wish to discourage cable operators from   submitting social contract proposals to local franchising authorities for comment, we are satisfied that the   procedures we have followed here and in evaluating other social contracts afford subscribers and   Lfranchising authorities a meaningful opportunity to present their views. In this instance, we published a   public notice announcing the proposed adoption of the Social Contract, summarizing its terms, and  S$ -  allowing interested parties 45 days to submit their comments.x$ } {Ob-ԍSee Public Notice, supra note 16. A copy of the Social Contract was appended to the public notice. In addition, Comcast served copies of   the public notice and the Social Contract on all local franchising authorities having jurisdiction over its   0systems. We have accepted and considered all of the numerous comments we received, including   opposing comments that were filed out of time or were otherwise not permitted by the terms of the public  S -  notice.yZ 0 } yOT-  ԍIndianapolis filed supplemental comments after both the initial and reply comment periods had ended.   Tallahassee/Howard County filed reply comments even though the public notice indicated that only Comcast would  {O-be permitted to file reply comments. Public Notice at 3 ("Comcast may file a reply . . ."). In response to the comments we received, we are adopting several modifications to the proposed   Social Contract. All of these facts support our view that local franchising authorities and subscribers have   {had a meaningful opportunity to participate in the development of the Social Contract that we are adopting. Our procedures have not deprived interested parties of their due process rights.  S- I. Miscellaneous Concerns ă  Sl-_ 1. Conditions Applicable To MPTs ă  S-  =62.` ` The Ratepayer Advocate suggests that the Social Contract be modified to prohibit Comcast  S-  yfrom migrating services from a BST to an MPT.@zR } yO$-ԍRatepayer Advocate at 5.@ The Ratepayer Advocate states that this is necessary to protect BST subscribers from having to pay higher rates to continue to receive existing services. "z,`(`(88"Ԍ S-  >63.` ` We do not believe this restriction is necessary to protect subscribers' interests. Our rules  S-  jalready prohibit Comcast from removing from the BST any channel required by statute to be included.^{} yO@-ԍ47 U.S.C.  543(b)(7)(A); 47 C.F.R.  76.901(a).^  S-  Under our rules, Comcast would be able to move any other channels out of the BST at its discretion.|X} yO-  ԍOf course, Comcast may have entered into private contractual arrangements under which it is obligated to offer certain services on its BST regardless of the Commission's rules.   .The Social Contract therefore does not expand Comcast's existing rights with respect to the migration of channels out of the BST.  S-  Q?64.` ` The Georgia Municipal Association ("GMA") states that we should modify the Social   =Contract to require Comcast to notify subscribers of their right to decline or terminate MPT service free  S-  Lof charge.1}} yO -ԍGMA at 2.1 GMA points out that our rules allow subscribers to terminate service free of charge within  S-30 days after they receive notice of a rate increase or retiering.V~@} {Ox-ԍId.; see 47 C.F.R.  76.980(f).V  SH -  @65.` ` We agree with GMA, and Comcast has assented to GMA's proposed modification of the   zSocial Contract. The required notification will not unduly burden Comcast, and the information to be   provided will enable subscribers to realize the benefit of increased programming choice that the creation   of MPTs and NPTs affords. Section III.B.1.a. of the Social Contract has been modified to require the  S -additional notification.X } yO-  ԍThe following sentence has been added at the end of Section III.B.1.a.: "Concurrently with its creation of an   MPT, Comcast shall notify all subscribers on affected systems that within thirty (30) days after such notification, they have the right to decline the MPT and to drop any tier other than the BST without charge."  SX-  A66.` ` The Cable Authority of Paducah, Kentucky ("Paducah"), asks the meaning of the term "per   channel" as it is used in the Social Contract requirement that services moved to an MPT will be priced  S-  jat a rate equal to the per channel rate applicable to the tier from which they are moved.5 } yO-ԍPaducah at 1.5 Paducah notes   that the term "per channel" is not defined in the Social Contract and asks whether the existence of a   \pending rate proceeding will affect the rates for services that are moved to an MPT from a tier that is  S-subject to the rate proceeding.1 } {O -ԍId.1  S@-  B67.` ` The term "per channel" is intended to refer to the term "per channel" as it is used in our   regulations and rate forms, which describe the procedures for determining "per channel" rate  S-  ?adjustments.cX} yO%-  yԍ47 C.F.R.  76.922(g); Form 1210 Module H; Form 1240 Worksheets 4 and 5. The perchannel rate is   Ydependent, in part, on when the channel was added to the system. Certain channels added after May 15, 1994, have   a perchannel value equal to the rate at which they were added. Other channels have a perchannel value equal to"4',`(`(W'"  {O-the tier price divided by the number of channels on the tier, subject to adjustments set forth in our rules. See id.c If the rates for tiers from which channels are migrated are under review by a local"Z,`(`(88C"   franchising authority or the Commission when Comcast migrates services into an MPT, then the rates for   the migrated channels will be subject to adjustment based on the outcome of the pending rate review. The   term "per channel rate" is not meant to allow Comcast to charge a rate that is determined to exceed the maximum permitted rate.  S8-z 2. Restrictions on Internet Service ă  S-  C68.` ` Indianapolis recommends that the Social Contract be modified to prohibit Comcast from   restricting schools' and libraries' use of any internet service Comcast may provide them under the Social  S-  Contract.<Z} yO -ԍIndianapolis at 23.< Indianapolis apparently fears that the announced investment of $1 billion by Microsoft, Inc.  Sp-  ("Microsoft"), in Comcastp} {O -ԍSee David Bank, Microsoft Casts a Wider Communications Net, Wall St. J., June 10, 1997, at B5. may induce Comcast to force schools and libraries to use Microsoft software  SH -or internet platforms.H |} yOd-  ԍIndianapolis expresses concern about Comcast's "proprietary" motives in providing internet access to schools  {O,-and libraries. Id. at 3.  S -  3D69.` ` We do not believe Indianapolis's concern warrants modification of the Social Contract.   ]The fears expressed by Indianapolis are speculative and vague. We have no reason to believe that   Comcast is likely to structure its internet services in a way that unduly restricts users' access to the internet.  S0-u 3. Effective Competition Standard ă  S-  E70.` ` The restrictions on MPT rate increases would not apply to Comcast systems whose prices  S-  <are constrained by competition or to systems that are subject to effective competition.J} yO.-ԍSocial Contract Section III.B.1.c.J Detroit questions   the reference to systems whose "prices are constrained by competition" and states that the quoted phrase   is not a statutorily sanctioned standard for determining when a cable operator is not subject to rate  S@-regulation.9@f } yOF-ԍDetroit at 2 n.1.9  S-  F71.` ` The reference to systems whose prices are constrained by competition has been removed   from the Social Contract. The phrase is confusing and is not necessary to ensure that systems that are   .subject to effective competition are exempt from the MPT rate increase restriction. Comcast has agreed  Sx-that this modification to the Social Contract is appropriate. x } yO%-  ԍSection III.B.1.c. of the Social Contract is modified to read as follows (stricken language is deleted from the  yO%-  woriginal): "Where the Commission finds that a system subject to this Contract is subject to effective competition or  yO&-  ;its prices are constrained by competition , then the provisions of this Contract which limit Comcast's ability to take rate increases shall not apply.""x,`(`(88"Ԍ S-ԙ  VI. CONCLUSION AND ORDERING CLAUSES ă  S-  G72.` ` For the reasons discussed above, we conclude that it is in the public interest to adopt the proposed Social Contract, as revised in accordance with the discussion set forth above.  S8-  H73.` ` Accordingly, IT IS ORDERED that the Social Contract attached to this Order IS  S-ADOPTED AND INCORPORATED HEREIN .  S-  I74.` ` IT IS FURTHER ORDERED that waivers of 47 C.F.R.  76.922(e)(3)(ii), 76.922(g),  S-and 76.987(b)(2)(b)(3), as discussed herein, ARE GRANTED .  SH -  "J75.` ` IT IS FURTHER ORDERED that any waivers not explicitly mentioned herein, and any  S -  modifications to Commission forms, that are necessary to effectuate the terms of the Social Contract ARE  S -GRANTED .  S -  K76.` ` IT IS FURTHER ORDERED that the Cable Services Bureau IS GIVEN delegated authority to oversee implementation of the Social Contract, as adopted.  S0-L77.` ` IT IS FURTHER ORDERED that this Order IS EFFECTIVE upon adoption. ` `  hh,FEDERAL COMMUNICATIONS COMMISSION ` `  hh,William F. Caton ` `  hh,Acting Secretary",`(`(88"  S-  X` hp x (#%'0*,.8135@8: