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

In the Matter of                   )    
                              )              
Comcast Cablevision of             )    CUID No.       NJ0021 (East Brunswick)  Central
New Jersey, Inc.              )              NJ0344 (Plainsboro)
                              )              NJ0372 (Monroe)
Complaint Regarding                )              NJ0437 (Cranbury)
Programming Services Tier Rates         )              NJ0438 (Jamesburg)  
                                   )              NJ0439 (Helmetta)
                              )              NJ0440 (Spotswood)
                              )              NJ0441 (South Brunswick)
                              )              NJ0508 (Roosevelt)  
                                                            
          
                                 
                             ORDER

     Adopted:  June 2, 1998             Released:  June 5, 1998  

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

     1.   In this Order we consider a complaint against the rates the above-referenced operator
("Operator") was charging for its cable programming services tier ("CPST") in the communities referenced
above.  We have already issued a rate order in which we determined Operator's refund liability and finally
resolved all pending complaints against Operator's CPST rates for the Period September 1993 through
December 1, 1995.  We also issued a rate order concerning Operator's January 1, 1997 CPST rate increase. 
Accordingly, this Order addresses only the reasonableness of Operator's January 1, 1998 CPST rate increase
in the above referenced franchise areas.

     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 a rate to be unreasonable, it shall determine the correct
rate and any refund liability.   The Telecommunications Act of 1996 ("1996 Act") and our rules implementing
the new legislation ("Interim Rules"), require that complaints against the CPST rates be filed with the
Commission by a local franchising authority ("LFA") that has received more than one subscriber complaint. 

     3.   The LFA for the franchise areas referenced above filed a complaint with the Commission on
March 23, 1998, against Operator's January 1, 1998 CPST rate increase from $16.89 to $18.32 and Operator's
Value Pack rate increase from $2.90 to $3.36.  The LFA verified that it received more than one subscriber
complaint for the above referenced franchise areas.  The filing of a complete and timely LFA complaint
triggers an obligation upon the cable operator to file a justification of its CPST rates.  The Operator has the
burden of demonstrating that the CPST rates complained about are reasonable. 

     4.    To justify rates for the period beginning May 15, 1994 through a benchmark 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.  

     5.   The LFA has challenged the rate increase to Operator's Value Pack tier.  We have previously
determined that Operator's Value Pack, created as a result of a la carte packaging and containing a small
number of channels, may be treated as a New Product Tier ("NPT") not subject to regulation. We believe that
in this instance Operator's Value Pack is similar to other Value Pack offerings not subject to regulation created
by Operator because of the small number of channels carried on the tier.  Consequently, we find that Operator's
Value Pack is not subject to our jurisdiction.

     6.    Operator filed FCC Form 1240 for the projected period January 1, 1998 through December
31, 1998 to justify its CPST rates.  Upon review of Operator's FCC Form 1240, we find Operator's actual
CPST rate of $18.32, effective January 1, 1998, to be reasonable.     

     7.   Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R. Section 0.321, that the CPST rate of $18.32 charged by Operator in the communities referenced above,
effective January 1, 1998, 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 referenced complaint IS DENIED.


                              FEDERAL COMMUNICATIONS COMMISSION 



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