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1 <br /> 9 <br /> $2.22, from $17.01 to $19.23. Time Warner is charging a rate below the MPR. <br /> Table C <br /> Rate Comparison <br /> 1996 and 1997 Cable Rates <br /> Carrboro System,NC-0256 <br /> Service 1996 1997 Change Type <br /> BST $8.71 $8:81 $0.14 MAX <br /> BST $8.54 $8.65 $0.11 SELECTED <br /> Standard $17.01 $19.23 $2.22 MAX <br /> Standard $16.64 $18.95 $2.31 SELECTED <br /> Subscribers <br /> As of September 30, 1996,there was a total of approximately 958 Time Wainer subscribers served from <br /> the Carrboro(CVI)headend. Approximately 920 were Standard Service subscribers,and 38 subscribers <br /> received only the Basic Service tier. Time Warner estimates that these figures will change in 1997: <br /> Standard Service, 930; Basic Service only,40. <br /> It is important to note that the former, 1996 CVI/Alert cable rates included a portion of the County's <br /> franchise fee. In 1997 cable statemmi%Time Warner will itemize the County's franchise fee as a separate <br /> item-similar to how original Time Warner systems have itemized franchise fees on cable statements. <br /> Analysis of Cable Service Rate Increases <br /> External Costs <br /> The cable service rate adjustments reflect multiple external cost elements. An external cost is an <br /> expense a cable operator incurs during the normal course of business and may be included in rate <br /> calculations. <br /> External cost categarla dude:costs of complying with franchise requirements, including costs of <br /> providing publii-o";ational,and goveaunerntal access channels;retransmission consent fees and <br /> copyright feea>' ed far the carriage of broadcast signals; other programming costs;FCC regulatory <br /> fees;and costs Osooiated,with channel additions and deletions. <br /> Time Warner's FCC 1240 rate adjustments reflect the following external cost elements: <br /> 1)External costs for true up period; <br /> 2)External costs for projected period; <br /> 3)Projected cable system upgrade costs(applied to upper cable tier only)-per Social Contract; <br /> 4)Inflation from true up period; <br /> 5)Inflation for projected period; <br /> 6 <br />