Agenda - 12-20-94 - IX-C - Laserfiche WebLink

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5 The Company does offer a second FCC regulated tier service group of channels. There is a third tier basic service. Of the 2 basic service groups, Time Warner has a financial interest in BET and TNT. The operator reported 5193 franchise subscribers on March 31, 1994. The median census income household level for the franchise area reported by the operator is $31,498. It is accepted by economists that people residing within communities where median household incomes are higher, they generally pay more for goods and services. The FCC benchmark rate service rules incorporate this phenomenon. Consequently, it is possible for one cable operator to have two different rate structures for'identical levels of service in adjoining, but economically dissimilar communities. The operator did not report any programming, franchise related, or external costs associated with the first year of rate regulation. FINDINGS: The operator's benchmark calculation for programming are consistent with the FCC-1200 benchmark requirements., The median household income reported by the US Census Bureau's 1990 File C-A census tapes for the County is $29,968 for all households. It is important to note that the FCC disallows values published in the C-A tapes. The consultants used this source as a check against the value stated by the operator. Alternately, the FCC allows the cable operator to use census data contained in File tape 3-B, which provides census income by zip code. To use this data, it must be weighted to reflect the number of subscribers in each zip code served. Using this method, TWC calculated a median household income of$31,498. The discrepancy in household income data appears on the surface to be significant, it is not. Staff recalculated the Company's benchmark using the $329,968 value, the maximum permitted cable rate calculation was not affected. [See FCC1200a]