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10 <br />Subscribers <br />Carrboro System NC-0256 <br />Time Warner states that its average subscnbership during 1997 (the true up period) was 1021. It <br />anticipates approximately 1,115 average subscribers during 1998 (the projected period, an <br />increase of 94 subscribers. Subscribers receiving "Only" Basic Service in 1997 numbered 56, <br />and is projected to increase to 114 during 1998. <br />Subscribers . <br />Chapel Hill System NC-0276 <br />Time Wainer states that its average subscnbership during 1997 (the true up period) was 5710. It <br />anticipates approximately 5901 average subscribers during 1998 (the projected period), as <br />increase of 191 subscribers. Subscribers receiving "Only" Basic Service in 1997 numbered 558, <br />and is projected to increase to 658 during 1998. The number of CPST or Tier Z subscribers in <br />1997 was 5152 which was projected to increase to 5243 in 1998. Similarly, the number of <br />Standard Service or Tian 3 subscribers in 1997 was 4975 which is expected to grow to 4956 in <br />1998. <br />Cable System Upgrade Costs <br />Pursuant to the Social Contract, Time Warner is allowed to assess each CPST subscriber in 1998 <br />$3.00 monthly to recover estimated costs associated with a cable system upgrade. This <br />assessment is levied only on the CPST tier and will increase by $1.00 for each of the five years <br />of the Social Contract. Thus, in the third year of the Social Contract, the operator will collect <br />$3.00 per subscriber tech month in the third year, etc. <br />By the cad of the Social Contract on December 31, 2000, it is estimated that Time Warner will <br />have collected approximately $1,170,532.08 to fund its rebuild of the cable system(s) within <br />Orange County (see the following Table for estimated annual revenue collected). <br />.- <br />lnnuary l3, 1998D:\WPDOCS\T1000\ORANGE\12401(998i0RGE-cO.RPT <br />