BC 1995 01 17 - Laserfiche WebLink

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304 Centralina Council of Governments concludes that the rate set for the Cable Progr-mming Service Tier is within FCC guidelines and is in compliance with currently applicable FCC rules. SUMMARY APPROVED BY: Sandra Albrecht CABLE TELEVISION RATE REVIEW FINDINGS SUMMARY Centralina Council of Governments Franchise: Cabarrus County Summary Date: January 3, 1995 Cable Operator: Vision Cable of Metrolina DATE RATES INITIATED: September 1, 1993 TIER: A La Carte Packages REVIEW STATEMENT: Rates have been reviewed and are ACCEPTABLE under required Federal Communications Commission guidelines with the qualifying comments provided below. QUALIFYING COMMENTS AND EXPLANATIONS: * Under Federal Communications Commission regulations, local franchising authorities must make an initial determination about the appropriate regulatory status of "a la carte" tier offerings made by the local cable operator. In reviewing the FCC 1215 forms, a local Franchise Authority must make a decision on how to review collective offerings of "a la carte" channels. Centralina recommends that the Cabarrus County Franchise Authority elect to treat such packages as a Cable Programming Service (CPS) tier, that is regulated as a "New Product Tier" under the newest FCC rules issued 11-10-94. (The alternative methodology is complex and unnecessary for the offerings made by Vision Cable for Cabarrus County.) Under the new FCC rules issued 11-10-94, "a la carte" packages of "a la carte" channels offered prior to April 1, 1993 would be accorded unregulated treatment, or "grandfathered" as acceptable package offerings. Therefore, any packages comprised of any combination of the four (4) "a la carte" channels of HBO, Cinemax, Disney, and Showtime, are acceptable under the newest FCC rules and regulations. * On 9-1-93, Vision Cable added a Superstatton Package, consisting of WTBS, WGN, TNT, and WWOR, and Preferred Package, consisting of SportsSouth, Sci-Fi, and CMT. Three (3) of the channels in the Superstation Package were "migrated" from the Basic Tier, and one channel from the Cable Programming Service (CPS) tier, to create this new package. As for the Preferred Package, these three channels were part of a third tier, and these channels migrated from there. The new "a la carte" regulations issued 11-18-94, set entirely new rules for "a la carte" tiers, now calling them "new product tiers" For packages created between April 1, 1993 and September 30, 1994 (which is the period in which the Superstation and Preferred Packages were created), FCC ruled that Franchise Authorities may treat these existing packages as new product tiers (NPTs) even though they would not qualify under the rules established 11-10-94. Therefore, as long as only a insignificant number of channels migrated from the Basic and CPS tier (which they did) the Superstation and Preferred Packages would be acceptable under current FCC rules and regulations. In essence, the FCC, late in issuing its new "a la carte" rules, rewarded cable operators that gambled with a la carte packages, before the FCC clarified their rules. The FCC takes responsibility for their unclear rules and has not, in most cases, penalized cable operators because their rules may have been vague. Other instances may be subject to further review. Centraltna will keep Cabarrus County informed of any future "a la carte" rulings which may impact the County.