******************************************************** 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. FL0202 (Hialeah) ) FL0416 (Dade) MediaOne of South Florida, Inc. ) FL0422 (Sweetwater) ) FL0427 (Miami Springs) Complaints Regarding ) FL0674 (Coral Gables) Cable Programming Services Tier Rates ) ORDER Adopted: July 21, 1998 Released: July 24, 1998 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints against the January 1, 1998 rate increases of the above- referenced operator ("Operator") for its cable programming services tiers ("CPSTs") in the communities referenced above. On August 1, 1995, the Federal Communications Commission ("Commission") adopted an order approving a Social Contract entered into between Operator and the Commission. The Commission adopted an Amended Social Contract ("Amended Social Contract") on August 21, 1996. This Order addresses only the reasonableness of Operator's January 1, 1998 CPST rate increases, consistent with the terms of the Amended Social Contract. 2. Under the Communications Act, the 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 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 complaints with the Commission on May 14, 1998 against Operator's January 1, 1998 CPST rates as listed in the attached Appendix. The LFA verified that it received more than one subscriber complaint for each franchise area and that the first valid complaint for each franchise area was received by the LFA on the date listed in the Appendix. 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, 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. There are no official forms available for use to implement the one-time changes in rates as required by the Social Contract. The Commission, seeking to simplify the implementation of the Social Contract, found that the rate form proposed by Operator ("SC Rate Form") to implement the rate restructuring under the Social Contract, was consistent with the methodologies of the Commission's Forms 1200 and 1210 and greatly simplified the review of the restructured rates under the Social Contract. Therefore, pursuant to the terms of the Social Contract, the Commission permitted Operator to file an SC Rate Form to establish its CPST rates. 5. Upon review of Operator's SC Rate Forms, setting initial maximum permitted rates ("MPRs") in accordance with the Amended Social Contract, and Operator's FCC Form 1210s, covering the period from the SC Rate Form through December 31, 1996, and Operator's FCC Form 1210s covering the period from January 1, 1997 through December 31, 1997, we find Operator's actual CPST rates listed in the attached Appendix, effective January 1, 1998, to be reasonable. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the CPST rates, listed in the attached Appendix, charged by Operator in the communities referenced above, effective January 1, 1998, ARE REASONABLE. 7. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the complaints against Operator's January 1, 1998 CPST rate increases in the communities referenced above, ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau APPENDIX CPST SERVICE CPST RATE DATE OF FIRST CUID NO. COMMUNITY NAME EFF. 1/1/98 VALID COMPLAINT FL0202 Hialeah Basic $15.53 1/6/98 FL0416 Dade (Hialeah) Basic $15.95 1/16/98 FL0416 Dade (Coral Gables) Basic-Classic $15.55 1/16/98 FL0416 Dade (Coral Gables) Basic-Rebuild $16.79 1/16/98 FL0422 Sweetwater Basic $16.01 1/13/98 FL0427 Miami Springs Basic-Classic $15.63 1/8/98 FL0427 Miami Springs Basic-Rebuild $16.87 1/8/98 FL0674 Coral Gables Basic $15.88 1/2/98