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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                           )                               
                                                           
                           )                               
                               File Number EB-09-SE-009    
     In the Matter of      )                               
                               NAL/Acct. No. 200932100031  
     Comcast Corporation   )                               
                               FRN 0015401581              
                           )                               
                                                           
                           )                               


             NOTICE OF APPARENT LIABILITY FOR FORFEITURE AND ORDER

   Adopted: January 19, 2009 Released: January 19, 2009

   By the Chief, Enforcement Bureau:

   I. INTRODUCTION

    1. In this Notice of Apparent Liability for Forfeiture and Order ("NAL
       and Order"), we find that Comcast Corporation's cable system serving
       Fairfax, Vermont ("Comcast") apparently willfully violated Section
       76.1603(b)  of the Commission's Rules ("Rules"). Specifically, Comcast
       failed to provide the requisite thirty (30) days advance written
       notice to its customers, before implementing a change in rates,
       programming services or channel positions as required under the Rules.
       We conclude, pursuant to Section 503(b) of the Communications Act of
       1934, as amended ("Act"), that Comcast is apparently liable for a
       forfeiture in the amount of seven thousand five hundred dollars
       ($7,500). We also order Comcast, within ninety (90) days of this NAL
       and Order, to issue refunds to the customers affected by the change in
       rates, programming services or channel position as explained more
       fully below.

   II. BACKGROUND

    2. On July 15, 2008, the Commission received a complaint from a customer
       in Fairfax, Vermont asserting that Comcast had removed three channels
       from complainant's service. According to the complainant, this change
       was made without any notice.

   III. DISCUSSION

   A. Comcast Apparently Violated Section 76.1603(b) By Failing To Provide
   Proper Notice to its Customers.

    3. Based on the record before us, we find that Comcast apparently
       willfully violated Section 76.1603(b) by failing to notify its
       customers before implementing a change in rates, programming services
       or channel positions as required under the Rules.

    4. Section 76.1603(b) of the Rules provides, in relevant part, as
       follows:

   Customers will be notified of any changes in rates, programming services
   or channel positions as soon as possible in writing. Notice must be given
   to subscribers a minimum of thirty (30) days in advance of such changes if
   the change is within the control of the cable operator. In addition, the
   cable operator shall notify subscribers 30 days in advance of any
   significant changes in the other information required by S: 76.1602.

    5. We find that the migration of each channel referenced in the complaint
       constitutes a change in rates, programming services or channel
       positions under the Rules. We also find that the migration was a
       change within the control of the Comcast because we are unaware of
       external forces that would have required the Comcast to make such a
       change, particularly without giving 30 days notice. In our Letter of
       Inquiry issued to Comcast on October 30, 2008, we asked for a range of
       information related to the migration of channels, including evidence
       that consumers were provided with the notice required under our rules.
       Unfortunately, Comcast failed to produce any evidence on this point in
       response to our request, including any evidence that the requisite
       notice was provided of the migration that is the subject of this NAL
       and Order.

    6. Therefore, for the reasons stated above, we find that Comcast
       apparently violated Section 76.1603(b) by failing to provide its
       customers at least thirty (30) days notice of changes in rates,
       programming services or channel positions.

   B. Forfeiture Calculation

    7. Under Section 503(b)(1)(B) of the Act, any person who is determined by
       the Commission to have willfully or repeatedly failed to comply with
       any provision of the Act or any rule, regulation, or order issued by
       the Commission shall be liable to the United States for a forfeiture
       penalty. To impose such a forfeiture penalty, the Commission must
       issue a notice of apparent liability and the person against whom such
       notice has been issued must have an opportunity to show, in writing,
       why no such forfeiture penalty should be imposed. The Commission will
       then issue a forfeiture if it finds by a preponderance of the evidence
       that the person has violated the Act or a Commission rule. Based on
       the analysis set forth below, we conclude that Comcast is apparently
       liable for a forfeiture in the amount of seven thousand five hundred
       dollars ($7,500) for its willful violation of Section 76.1603(b) of
       the Rules.

    8. Under Section 503(b)(2)(A) and Section 1.80(b)(1) of the Commission's
       Rules, we may assess a cable television operator a forfeiture of up to
       $32,000 for each violation or each day of a continuing violation, up
       to a statutory maximum forfeiture of $325,000 for any single
       continuing violation. In exercising such authority, we are required to
       take into account "the nature, circumstances, extent, and gravity of
       the violation and, with respect to the violator, the degree of
       culpability, any history of prior offenses, ability to pay, and such
       other matters as justice may require."

    9. The Commission's Forfeiture Policy Statement and Section 1.80 of the
       Rules do not establish a specific base forfeiture for violation of
       Section 76.1603's notice requirements. Based on the totality of
       circumstances here and the Commission's past precedent, we find that
       $7,500 is an appropriate base forfeiture for each failure to notify
       its customers of Comcast's change in service. We apply this base
       forfeiture to the apparent violation represented by Comcast's failure
       to notify complainant of the changes in complainant's cable service.
       Accordingly, we conclude that Comcast is apparently liable for a total
       forfeiture of $7,500 for its willful violation of Section 76.1603(b)
       of the Rules.

   C. Comcast Must Issue Refunds To Customers Harmed By Its Failure To
   Provide Notice.

   10. Comcast's change in rates, programming services or channel positions
       without the required notice has harmed its customers who purchased
       services based on the reasonable assumption that Comcast would not be
       moving portions of programming from standard service tiers to digital
       cable tiers without providing the notice required under our Rules. In
       effect, Comcast's movement of programming to a digital tier without
       any reduction in subscriber fees has diminished the value of the
       programming complainant receives. The Complainant must now pay the
       same monthly rate for cable service even though complainant can view
       fewer channels.

   11. Thus, we order Comcast, within ninety (90) days of this NAL and Order,
       to issue refunds to all affected customers who did not receive the
       required notice as of the date of the programming change.
       Specifically, Comcast must provide refunds as follows:

   Comcast must refund the customer's subscriber fees of all affected
   customers who did not receive the required notice based on the diminished
   value of their service following the movement of programming without
   proper notice by $0.10 per channel moved per month and reduce
   complainant's rates on a going-forward basis accordingly until the notice
   required under our rules has been provided.

   12. In addition, we order Comcast to submit to the Bureau within 30 days
       of the issuance of refunds a report in the form of a letter advising
       the Bureau that such refunds have been paid and that affected
       subscribers ' fees have been reduced as directed.

   IV. ordering clauses

   13. Accordingly, IT IS ORDERED, pursuant to section 503(b) of the
       Communications Act of 1934, as amended, 47 U.S.C. S: 503(b)(5), and
       section 1.80 of the Commission's rules, 47 C.F.R. S: 1.80, and under
       the authority delegated by sections 0.111 and 0.311 of the
       Commission's rules,47 C.F.R. S: 0.111, 0.311, Comcast is NOTIFIED of
       its APPARENT LIABILITY FOR A FORFEITURE in the amount of Fifteen
       Thousand dollars ($15,000.00) for willful violation of Section
       76.1603(b) of the Rules.

   14. IT IS FURTHER ORDERED that, pursuant to Section 1.80 of the Rules,
       within thirty days of the release date of this Notice of Apparent
       Liability for Forfeiture and Order, Comcast SHALL PAY the full amount
       of the proposed forfeiture or SHALL FILE a written statement seeking
       reduction or cancellation of the proposed forfeiture.

   15. IT IS FURTHER ORDERED that, pursuant to sections 1, 4(i), 4(j), 601,
       and 629 of the Communications Act of 1934, as amended 47 U.S.C. S:S:
       151, 154(i), 154(j), 521, 549, Comcast must take the steps set forth
       in paragraphs 10, 11, and 12 of this Notice of Apparent Liability for
       Forfeiture and Order .

   16. Payment of the forfeiture must be made by check or similar instrument,
       payable to the order of the Federal Communications Commission. The
       payment must include the NAL/Account Number and FRN Number referenced
       above. Payment by check or money order may be mailed to Federal
       Communications Commission, P.O. Box 979088, St. Louis, MO 63197-9000.
       Payment by overnight mail may be sent to U.S. Bank - Government
       Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO
       63101. Payment by wire transfer may be made to ABA Number 021030004,
       receiving bank TREAS/NYC, and account number 27000001. For payment by
       credit card, an FCC Form 159 (Remittance Advice) must be submitted.
       When completing the FCC Form 159, enter the NAL/Account number in
       block number 23A (call sign/other ID), and enter the letters "FORF" in
       block number 24A (payment type code). Requests for full payment under
       an installment plan should be sent to: Chief Financial Officer --
       Financial Operations, 445 12th Street, S.W., Room 1-A625, Washington,
       D.C.  20554. Please contact the Financial Operations Group Help Desk
       at 1-877-480-3201 or Email: ARINQUIRIES@fcc.gov with any questions
       regarding payment procedures. Comcast will also send electronic
       notification on the date said payment is made to Kathy.Berthot@fcc.gov
       and to JoAnnLucanik@fcc.gov.

   17. The response, if any, must be mailed to the Office of the Secretary,
       Federal Communications Commission, 445 12th Street, S.W., Washington,
       D.C. 20554, ATTN: Enforcement Bureau - Spectrum Enforcement Division,
       and must include the NAL/Acct. No. referenced in the caption.

   18. The Commission will not consider reducing or canceling a forfeiture in
       response to a claim of inability to pay unless the petitioner submits:
       (1) federal tax returns for the most recent three-year period; (2)
       financial statements prepared according to generally accepted
       accounting practices; or (3) some other reliable and objective
       documentation that accurately reflects the petitioner's current
       financial status. Any claim of inability to pay must specifically
       identify the basis for the claim by reference to the financial
       documentation submitted.

   19. IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability
       for Forfeiture  and Order  shall be sent by first class mail and
       certified mail return receipt requested to Kathryn A. Zachem, Vice
       President, Regulatory and State Legislative Affairs, Comcast
       Corporation, 2001 Pennsylvania Avenue, N.W., Suite 500, Washington,
       D.C. 20006 and James L. Casserly, Counsel for Comcast Corporation,
       Wilkie Farr & Gallagher LLP, 1875 K Street, N.W., Washington, DC
       20006-1238.

   FEDERAL COMMUNICATIONS COMMISSION

   Kris Anne Monteith

   Chief, Enforcement Bureau

   47 C.F.R. S: 76.1603(b).

   47 U.S.C. S: 503(b).

   See 08-C00032437

   47 C.F.R. S: 76.1603(b).

   ComcastLetter from Kathryn S. Berthot, Chief, Spectrum Enforcement
   Division, Enforcement Bureau, Federal Communications Commission to Mary
   McManus, Comcast Corporation  (Oct. 30, 2008) ("LOI").

   47 U.S.C. S: 503(b)(1)(B); 47 C.F.R. S: 1.80(a)(1).

   47 U.S.C. S: 503(b); 47 C.F.R. S: 1.80(f).

   See, e.g., SBC Communications, Inc., Forfeiture Order, 17 FCC Rcd 7589,
   7591 (2002).

   47 U.S.C. S: 503(b)(2)(A), 47 C.F.R. S: 1.80(b)(1). The Commission has
   repeatedly amended Section 1.80(b)(1) of the Rules to increase the maximum
   forfeiture amounts, in accordance with the inflation adjustment
   requirements contained in the Debt Collection Improvement Act of 1996, 28
   U.S.C. S: 2461. Most recently, the Commission raised the maximum
   forfeitures applicable to cable operators, broadcast licensees, and
   applicants for such authority from $32,500 to $37,500 for a single
   violation, and from $325,000 to $375,000 for a continuing violation. See
   Inflation Adjustment of Maximum Forfeiture Penalties, 73 Fed. Reg. 44663,
   44664 (July 31, 2008). The new forfeiture limits will take effect
   September 2, 2008 and do not apply to this case.

   47 U.S.C. S: 503(b)(2)(E). See also 47 C.F.R. S: 1.80(b)(4), Note to
   paragraph (b)(4): Section II. Adjustment Criteria for Section 503
   Forfeitures.

   See The Commission's Forfeiture Policy Statement and Amendment of Section
   1.80 of the Rules to Incorporate the Forfeiture Guidelines, Report and
   Order, 12 FCC Rcd 17087, 17115 (1997), recon. denied, 15 FCC Rcd 303
   (1999) ("Forfeiture Policy Statement").

   The Commission has substantial discretion, however, in proposing
   forfeitures. See, e.g., InPhonic, Inc., Order of Forfeiture and Further
   Notice of Apparent Liability, 22 FCC Rcd 8689, 8699 (2007); Globcom, Inc.
   d/b/a Globcom Global Commun., Order of Forfeiture, 21 FCC Rcd 4710,
   4723-24 (2006). We may apply the base forfeiture amounts described in the
   Forfeiture Policy Statement and the Commission's rules, or we may depart
   from them altogether as the circumstances demand See 47 C.F.R.
   S:1.80(b)(4) ("The Commission and its staff may use these guidelines in
   particular cases [, and] retain the discretion to issue a higher or lower
   forfeiture than provided in the guidelines, to issue no forfeiture at all,
   or to apply alternative or additional sanctions as permitted by the
   statute.") (emphasis added).

   See also Northland Cable Television, Inc., Memorandum Opinion and Order
   and Notice of Apparent Liability for Forfeiture, 23 FCC Rcd 7865 (Media
   Bur. 2008) (proposing $20,000 forfeiture for apparent violations of
   Section 76.1603 and other rules); Northland Cable Television, Inc.,
   Memorandum Opinion and Order and Notice of Apparent Liability for
   Forfeiture, 23 FCC Rcd 7872 (Media Bur. 2008) (same).

   Thus, for example, if Comcast migrated a channel and did not provide
   proper notice for nine months, it must refund $0.90 to each affected
   customer. $0.10 is our best estimate of the relevant license fee per
   channel. We note that Comcast did not provide actual per channel license
   fees as required by the LOI. The Bureau will reconsider the appropriate
   license fee per channel should Comcast submit a petition for
   reconsideration that includes evidence that the license fees of the
   affected channels are lower than $0.10 per month.

   (...continued from previous page)

                                                              (continued....)

   Federal Communications Commission DA 09-130

                                       5

   Federal Communications Commission DA 09-130