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


In the Matter of                )  CUID No.  MI0330 (City of Ann Arbor)
                                )            
MediaOne of Eastern Michigan, Inc.)               
                                )            
Complaint Regarding             )            
Cable Programming Services Tier Rates   )


                             ORDER

   Adopted:  January 29, 1999                          Released:  February 2, 1999  

By the Assistant Chief, Consumer Protection and Competition Division, Cable Services Bureau:

     1.   In this Order we consider a complaint against the June 1, 1998 rate increase of the above-
referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced
above.  We have previously resolved all prior complaints against Operator's CPST rates in the community
referenced above ("Prior Order").  On August 1, 1995, the Federal Communications Commission
("Commission") adopted an order approving a Social Contract entered into between Operator and the
Commission ("Social Contract").  On August 21, 1996, the Commission adopted an Amended Social Contract
which incorporated and amended the terms of the Social Contract (together with Social Contract, "Amended
Social Contract").  This Order addresses only the reasonableness of Operator's June 1, 1998 CPST rate
increase, 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 area referenced above filed a complaint with the Commission on
November 25, 1998 against Operator's June 1, 1998 CPST rate increase from $18.74 to $20.55.  The LFA
verified that it received more than one subscriber complaint and that the first valid complaint was received by
the LFA on June 23, 1998.  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 Amended 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 Amended 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 Amended Social Contract.
Therefore, pursuant to the terms of the Amended Social Contract, the Commission permitted Operator to file
an SC Rate Form to establish its initial CPST rates, which are updated by FCC Form 1210s.
     
     5.   Upon review of Operator's FCC Form 1210 covering the period from July 1, 1997 through
March 31, 1998, which updated Operator's maximum permitted rate ("MPR") approved by our Prior Order,
we find Operator's actual CPST rate of $20.55, effective June 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 rate of $20.55, charged by Operator in the community referenced above,
effective June 1, 1998, IS 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 complaint against Operator's June 1, 1998 CPST rate increase in the community
referenced above, IS DENIED.


                         FEDERAL COMMUNICATIONS COMMISSION 


                         Patrick A. Boateng, Assistant Chief
                         Consumer Protection and Competition Division      
                         Cable Services Bureau