NEWSReport No. CS 97-30                ACTION IN DOCKET CASE      
      December 15,
1997

            COMMISSION RELEASES REPORT ON CABLE INDUSTRY PRICES

 The Commission has released the results of a survey of cable
industry prices covering
the period from July 1, 1995 to July 1, 1997.  The survey (FCC
97-409) is mandated by
section 623(k) of the Communications Act of 1934 and reflects
information gathered from
cable operators. Beyond reporting on the level of price
increases, the survey compares
subscriber rates in competitive service areas and noncompetitive
service areas.  

 Within the competitive group of operators, the survey found that
the average monthly
rate rose by 8.7% between 1995 and 1996 and 9.6% between 1996 and
1997.  Over the
same time period, the average number of channels received by
subscribers in the competitive
group increased from 38 in 1995 to 46.5 in 1997.  In the
noncompetitive group, the average
monthly rate rose by 8.8% between 1995 and 1996, and 8.5% between
1996 and 1997. The
average number of channels increased from 44 in 1995 to 49.4 in
1997. 

  The survey finds that prices are rising in both competitive and
noncompetitive areas,
and that subscribers in competitive areas pay less than those in
noncompetitive areas.  The
survey shows that subscribers in competitive service areas pay
5.8% less on average than
subscribers in noncompetitive service areas.  As of July 1, 1997,
the competitive average
rate (the cost of the basic service tier, the cable programming
service tier, a remote and a
converter) was $27.26 and the noncompetitive average rate was
$28.83. 

 The survey also found that subscribers who purchase cable
services from regulated
operators pay less, on an average per channel basis, for
programming services and
equipment, than subscribers that purchase services from
unregulated operators, and that
regulated operators offer more channels than unregulated
operators on average.  In 1997, the
survey found that subscribers who purchase cable services from
regulated operators pay on
average $0.60 per channel for an average of 51.2 channels, while
subscribers who purchase
cable services from unregulated operators pay on average $0.65
per channel for an average
of 47.8 channels.  Also, regulated operators charge less, on
average, for equipment than
unregulated operators.  

Additional findings of the price survey include:

  Both competitive and noncompetitive operators attribute most
of their rate
   increases to increases in inflation, programming costs,
channel additions, and
   system upgrades.  Competitive and unregulated operators also
attribute
   significant portions of their rate increases to increases in
equipment costs.  


  For both competitive and noncompetitive operators, the package
of services
   offered to subscribers has changed over time.  Both groups
have increased
   their channel capacity and now offer subscribers additional
satellite channels.

Action by the Commission December 15, 1997 by Report (FCC
97-409).  Chairman
Kennard, Commissioners Ness, Furchtgott-Roth, Powell and
Tristani.

 -FCC-

Media contact: Morgan Broman at (202) 418-2358
Cable Services Bureau contacts: Daniel Hodes, Kiran Duwadi at
(202) 418-7200