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Harrington ă 57221 Beechwood Road 1Alexandria, Virginia 22307 7(703) 7686987 >2`f|řgXAhi KNormalf$ Xx  @ HeadergFootnotehÍ/"i~'^ %,77\V%%%7>%7777777777>>>0eOIIOD>OO%*ODaOO>OI>DOOgOOD%%37%07070%777V7777%*77O77055;%;3%%%%%%%%%%%7O0O0O0O0O0aHI0D0D0D0D0%%%%O7O7O7O7O7O7O7O7O7O7O0O7O6O7O7O7>7O0O0O0I0I0I;I0OED0D0D0D0O7O7O7O;O7O;O7%%7%%%7M>;;O7DD,D%D%DO7AO7O7O7O7aOI%I%I%>*>*>*>;D.DD3O7O7O7O7O7O7gOO;D0D0D0O7D%O7>*D%O7E77%%WMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN(BB(37%07777j7#TT7!#TT7T!%%007n&&Bn77lCTn(nBB(A\\>>n%07\n!"IIIITTenn7TnB@;7>lBBn7\W5hC:,%2Xh*f9 xr G;XXXW!@(#,h@\  P6G;hPYH5!,i,5\  P6G;,P\{,W80,%0W*f9 xr G;Ximes (WN)fe "Univers (WN)feaWP Ansi Draft (VGA)2\^MLy.X80,X\  P6G;P 2a=5,&a\  P6G;&P2e=5,&e4  pG;&\0_=5,%&_*f9 xr G;&X1a=5,<t&a9 xOG;&7jC:,9Xj\  P6G;XP7nC:,|Xn4  pG;X\5hC:,%2Xh*f9 xr G;XXW!@(#,h@\  P6G;hPH5!,i,5\  P6G;,Py.X80,X\  P6G;P 2a=5,&a\  P6G;&P 2e=5,&e4  pG;&\0_=5,%&_*f9 xr G;&X1a=5,<t&a9 xOG;&7jC:,9Xj\  P6G;XP7nC:,|Xn4  pG;X\5hC:,%2Xh*f9 xr G;XXW!@(#,h@\  P6G;hPH5!,i,5\  P6G;,P\{,W80,%0W*f9 xr G;XP:% ,J:\  P6G;JPee{CePCHCMPPC%'0*,.8135@8: S-  #&J\  P6Q&P#Federal Communications Commission`}(#DA 981993 ă  yx}dddy )ՊP3 Before the Federal Communications Commission  S-" Washington, D.C. 20554 ă In the Matter ofR) R)  S-Time WarnerR)  ăh  R) Social ContractR) R)  S -< ORDER TP  S6 -X` hp x (#%'0*,.8135@8:, * *,,"  xexternal costs and the costs of inflation, has established "lifeline" basic service tiers priced below basic  xservice tier rates in effect at the time of adoption of the Social Contract, and is providing free cable  xMconnections to public schools in its franchise areas. The Commission delegated to the Cable Services Bureau the authority to implement the Social Contract.  S- ` Qx3.` ` By its terms, the Social Contract may continue to apply to a cable system divested by  xzTime Warner only if the acquiring operator agrees to be bound by the Social Contract. Section III.F.6 of the Social Contract provides:  _XxIn the event of a sale of any system during the period of applicability of this Contract, the  2purchaser may elect, with the concurrence of the FCC, for the provisions of this Contract  pto continue to apply to such system. Such FCC concurrence shall be expeditiously  decided and not be unreasonably withheld. In the event the purchaser elects not to have  the provisions of this Contract apply to any such system, the CPST subscribers to such  system shall be eligible for the refunds calculated pursuant to Section III.F.5 in the event  the upgrade commitment described in Section III.F.1 has not been completed prior to the  S -consummation of such sale.xX  yO8- xԍSection III.F.5 provides that Time Warner will refund the increases taken in CPST rates, plus interest and a  xdamages penalty, in the event Time Warner fails to fulfill its upgrade commitments to cable systems under the terms of the Social Contract. Section III.F.1 establishes the upgrade requirements. x   xLPursuant to Section III.F.6, MediaOne seeks the concurrence of the Commission to continue application  xof the Social Contract to the Dearborn and Wayne Systems. MediaOne does not seek modification of the Social Contract.  S- ` Px4.` ` MediaOne and Time Warner have entered into an agreement pursuant to which MediaOne  x0agrees to be bound by the Social Contract with respect to the Dearborn and Wayne Systems (the  x]"Agreement"). The Agreement is attached, and its terms are incorporated herein. The Agreement  xbecomes effective upon the release by the Commission of this Order and the closing of the system acquisition agreement between MediaOne and Time Warner.  Sl- ` x5.` ` Section III.F.1 of the Social Contract provides that systems having a capacity of at least  x550 MHz as of the Social Contract effective date must be upgraded to 750 MHz within five years. In  x\addition, at least 60 percent of new analog services added to upgraded systems during the term of the  xSocial Contract must be added to the CPST; upgraded systems must offer at least 15 new analog channels  xon the CPST as compared to the channels offered on the Social Contract effective date; and at least 60  xpercent of the capital expended to complete the required upgrades must be applied for the benefit of basic  xservice tier and CPST subscribers. Media One and Time Warner represent in the Agreement that Time  xWarner has already upgraded the Dearborn and Wayne Systems to 750 MHz and has complied with all other terms of Section III.F.1 as they apply to the Dearborn and Wayne Systems.  Sn- ` Bx6.` ` Section III.F.1 of the Social Contract also imposes an investment requirement on Time  xWarner, pursuant to which Time Warner has agreed to invest $4 billion in capital costs associated with  xsystem upgrades. This financial commitment will not apply to MediaOne, since it is acquiring only a  xportion of the systems that are subject to the Social Contract, and Time Warner has completed the required upgrades of the Dearborn and Wayne Systems.  So"-"o",l(l(,,%"Ԍ S- `  x7.` ` Accordingly, IT IS ORDERED that the request of MediaOne of Eastern Michigan, Inc.,  xto assume the rights and obligations of TWI Cable Inc. under the Social Contract with respect to the  S- x-Dearborn and Wayne Systems IS GRANTED , provided that the Commission shall have the benefit of all  xagreements made between the parties to the Agreement and the right to enforce any provision of the Social Contract against the party that has agreed to be responsible for such provisions in the Agreement.  S- ` ox8.` ` This action is taken by the Chief, Cable Services Bureau, pursuant to authority granted  S- xby the Commission in Social Contract for Time Warner and pursuant to authority delegated by Section  Si-0.321 of the Commission's rules.xi {O-ԍSocial Contract for Time Warner, supra note 3; 47 C.F.R.  0.321.x x` `  hh@FEDERAL COMMUNICATIONS COMMISSION  S7 -x` `  hh@Deborah A. Lathen  S -x` `  hh@ Chief, Cable Services Bureau