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18 <br /> benefit of BST and CPST subscribers." <br /> Also, Time Warner agrees that"...each cable system will have a minimum bandwidth capacity of 550 <br /> MHZ,and at least 50%of Time Warner's subscribers will have access to a minimum bandwidth <br /> capacity of 750 MHZ. In the 750 MHZ systems,at least 200 MHZ is expected to be used for digital <br /> distribution." <br /> Section 10 of the Social Contract states that Time Warner must provide each franchise affected by the <br /> Social Contract with a"...progress report outlining the amount of capital investments made,the <br /> number of subscribers affected by those investments, improvements in system reliability and service, <br /> and projected expenditure and upgrades for the following year..."within 90 days following the end of <br /> the calendar year during which the Social Contract is in effect. <br /> Thus,the County can expect a report prior to March 31, 1997,from Time Warner stating exactly <br /> what the company has accomplished during the past year regarding the system upgrade. <br /> RATE ADJUSTMENTS FOR EQUIPMENT AND INSTALLATION SERVICES <br /> Regional FCC-1205 Form <br /> In addition to the rate increases for cable services,Time Warner will also adjust its rates for leased <br /> customer equipment and installation services. Pursuant to the Social Contract,Time Warner is <br /> allowed to aggregate equipment and installation costs on a regional basis. Time Warner submitted a <br /> regional FCC 1205 rate filing directly to the FCC for approval of equipment and installation service <br /> rates applicable to multiple franchises across North Carolina(Carrboro included). <br /> Though the FCC 1205 filing is not submitted directly to relevant f whise authorities,federal rules <br /> explicitly state that it is the franchise authority's responsibility to review the rates to ensure their <br /> compliance with FCC rule&°The County's consultants have requested a copy of the FCC 1205 filing <br /> submitted to the FCC by Time Warner Cable. See Tables N and O for equipment and installation <br /> service adjustments scheduled for January 1997. <br /> '"The local franchising authorities will be responsible for reviewing the rates(equipment and <br /> installation services)charged to ensure compliance with the rates approved by the Commission. If <br /> Time Warner charges rates in excess ofthose permitted by the Commission,the local franchising <br /> authority may order a refiind."Para. 37. Time Warner Cable Social Contract. Memorandum Opinion <br /> and Order. DA FCC 95-478. Released:November 30, 1995. <br /> 15 <br />