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CABLE TELEVISION RATE REVIEW FINDINGS SUMMARY <br /> Prepared by Centralina Council of Governments <br /> <br />Franchise: CABARRUS COUNTY <br />Cable Operator: TIME WARNER - METROLINA <br /> <br />Tier Reviewed: BASIC TIeR - 1998 <br />Number of Channels: 12 <br />Average Number of Subscribers 1998: 37,431 on entire headend including 8 communities & counties <br />Date Findings Prepared: 1-19-98 <br /> <br />SUMMARY REVIEW STATEMENT: <br /> <br /> The Basic Tier Rate has been reviewed and is ACCEPTABLE under required Federal Communications <br /> Commission guidelines. Comments follow. <br /> <br />COMMENTS AND EXPLANATIONS: <br /> <br />· Time Warner failed to provide the correct 1998 FCC Form 1240 to Centralina until 1-12-98. <br /> <br />A review of the FCC Form 1240 for the year 1998 establishes the new maximum permitted Basic tier rate at <br />$5.64 (excluding the franchise fee), compared to $5.61 in last year's revised 1240 form. The changes are <br />summarized below: <br /> <br />TI-ER 1997 1997 1998 1998 DIYFERENCE DIlZFERENCE <br /> MAXIMUM ACTUAL MAXIMUM ACTUAL BETWEEN BETWEEN 1997 <br /> RATE RATE RATE RATE 1998 ACTUAL RATE <br /> (without (without (without (without MAXIMUM AND 1998 <br /> franchise franchise franchise fee) franchise RATE AND ACTUAL RATE <br /> fee) fee) fee) 1998 ACTUAL (without <br /> RATE (without franchise fee) <br /> franchise fee) <br />Basic $5.61 $5.60 $5.64 $5.60 -$0.04 0 <br /> <br />Even though Time Warner is allowed to charge subscribers in 1998 as much as $5.64 for the 12 Basic <br />channels, they chose to set the rate $0.04 lower than that permitted through the Social Contract. <br /> <br />The actual rate set in 1998 is proposed to stay the same at $5.60. This is the only community <br />participating in the Centralina cable television administration program where the rate did not increase. <br /> <br />Centralina Council of Governments concludes that Time Warner has set its rate to be lower than the <br />maximum allowable rate as set in the Social Contract with the FCC. The Cabarrus County Franchise <br />Authority should approve the Basic Rate of $5.60 per month for the 1998 calendar year. <br /> <br />SUMMARY APPROVED BY: Sandra Albrecht Montgomery, AICP <br />TITLE: Cable Telecommunications Administrator <br /> <br /> <br />