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À ?        ? ? ?      ?    8?       ? ? ~  ?  ? ?  ? ?  ?    ?  ? ??  ?   ?   ? ??  ?   ?  ? ? ? ? ? ? ? ? ?  ? ?   ?   ?   ?  ?  ? ?? ? ? ??? ~?   ? ? ? ?? ? ??  ? ? ??  ?  ?  ?À? ? ?? ?? ?? ? ? ? ?? ?? ??? ? ?? ?? ? ? ?? ? ?? ??  ??  ???  ?  ?  ? ?? ??  ?  ?  >?  ?  ?? - ?: 9 4ǀ? ?4 4 4? 4 4 4 4 5? 5 4 ?4 ?4 5 5 5 ?1? ?1 ?1 ?1 ?0 1x 1 / /? ?/π / / / .? ??.? ?. <. - - - --,,?,,-?----?+?* ??* ?+,>,,,?,?,?,--.?.?.?.%?À%%%%%%?%%?%?%?%&&'''?'?'?''?'())))x)?)?)?))*+++ǀX? π? ? ??? ##?&#&#? %#0%#x?%#?x%#?|%#?%#?%#?%#?%#%#%#%# ?%# $# ?$#?$# $# ?$# $#$#$#$#$#$#$#$###??####?##?##?#$ ?#$'$?'$'*'*'+'++XCK"= X4  `$#K2pPG;#News Media Information 202 / 4180500 `$8FaxOnDemand 202 / 4182830 `$NInternet: http://www.fcc.gov `c!$ ftp.fcc.gov  L'#&h2pPG;&#Federal Communications Commission 1919 M Street, N.W. Washington, D. C. 20554  c#^2pPG;#y:  dddy  M8{h#^2pPG;##,92pPG;3,#This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MC v. FCC. 515 F 2d 385 (D.C. Circ 1974).  y: 5 dddhy  M8h U 1  1  Figure 1  Figure 1 y!HHhh@Uddfcclogo.wpgHHy! Xz ddtG8k @#S2pPG;# NEWS K X     Report No. CS 997 ACTION IN DOCKET CASE May 7, 1999  X4K  FCC RELEASES REPORT ON CABLE INDUSTRY PRICES ă \;(MM Docket No. 92266)  &LC Cable television subscribers pay less for service in areas where there is direct (headtohead) competition than in noncompetitive areas according to the results of a survey conducted by the FCC. The Report on Cable Industry Prices (FCC 9991) is a survey of cable industry prices covering the period from July 1, 1997 to July 1, 1998. The survey is mandated by section 623(k) of the Communications Act of 1934 and reflects information gathered from a random sample of cable operators. Beyond reporting on the average level of prices charged for cable services, the survey compares subscriber rates in service areas facing effective competition and noncompetitive service areas. The survey also notes that direct competition is not widespread; the FCC found that in this survey period only 246 service areas out of a nationwide total of approximately 30,000 meet the legal definition for effective competition. Of that number, 88 face direct headtohead competition and the remaining 158 meet the legal definition for effective competition for other reasons.  The survey found that prices are rising in both competitive and noncompetitive areas, and that subscribers in competitive areas typically pay less than those in noncompetitive areas. The survey shows that subscribers in service areas where there is effective competition pay 6.3% less on average than subscribers in noncompetitive service areas. As of July 1, 1998, the competitive average rate (the cost of basic service, a cable programming service tier, a remote and a converter) was $28.71 and the noncompetitive average rate was $30.53. Premium channel costs are not included in these average costs. Per channel rates increased for both groups, but by a rate of increase that was lower than the increase in average monthly rates. For the competitive group, per channel rates increased by 3.6% (from $0.55 to $0.57) and for the noncompetitive group by 1.6% (from $0.64 to $0.65) during the year ending July 1, 1998. Further, the average monthly rates charged by systems facing headtohead competition was 14% less than the average monthly rate charged by noncompetitive operators. Within the competitive group of operators, the survey found that the average monthly rate rose by 5.8% between 1997 and 1998. Over the same time period, the average number of channels received by subscribers in the competitive group increased from 53.2 in 1997 to 54 in 1998. In the noncompetitive group, the average monthly rate rose by 6.9% between 1997 and 1998. The average number of channels offered by operators in the noncompetitive group increased from 47.9 in 1997 to 50.1 in 1998. Channels used for premium services are not included in these averages."",$$ " " Additional findings of the price survey include:  X4XX` ` As was found in the 1997 price Survey, both competitive and noncompetitive operators attribute most of their rate increases to inflation, increases in programming costs, channel additions, and system upgrades.(#`   X_4XX` ` For both competitive and noncompetitive operators, the package of services offered to subscribers has changed over time. Both groups have increased their systems' capacity and now offer subscribers additional satellite channels. The average number of satellite channels offered by the competitive group increased from 39.3 in 1997 to 41 in 1998, and for the noncompetitive group, increased from 35.4 to 38 over the same time period.(#`  X 4XX` ` The survey also found that 29% of the operators responding to the survey questionnaire offer digital tiers, 19% offer internet access, and 4% offer cable telephony. Approximately onehalf of the operators surveyed report that they have upgraded their systems to a capacity of 550 MHz or higher.(#` Action by the Commission May 5, 1999 by Report (FCC 9991). Chairman Kennard, Commissioners Ness, FurchtgottRoth, Powell and Tristani. ` `  hhCqFCC Media contact: Morgan Broman at (202) 4182358 Cable Services Bureau contacts: Daniel Hodes, Kiran Duwadi at (202) 4187200