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7 <br /> Staff calculated a $3.72 per subscriber "adjusted monthly equipment and installation <br /> value where TWC's calculation was $3.77. The difference is attributed to rounding <br /> treatment by the algorithms used by TWC and the consultants. Regardless, the $3.39 <br /> value was entered into the FCC-1200 benchmark rate formula to determine whether if <br /> it affected program service the rates; no material differences were detected. <br /> FCC-1215: A-La-Cart Channel Offerings. <br /> OBSERVATIONS: <br /> The Company offers three a-la-carte program service, TBS, Discovery and <br /> American Movie Classics. The 3 unit combination is available for $2.17 <br /> monthly or individually at $1.30.; The•a-la-carte viewers number 355 <br /> households. The a-la-carte group-and other premium a-la-carte services are <br /> available individually to all classes of subscribers. <br /> Premium service a-la-carte programs include HBO, Cinnemax, Showtime, The <br /> Movie Channel and The Disney Channel. The monthly per service cost is <br /> $10.95. A four package combination "deal" is not available to subscribers on <br /> this system, unlike other TWC systems where channel capacity is greater. <br /> Of the a-la-carte offerings, the Company reported a financial interest in four <br /> program services, HBO, Cinemax, Turner ['IBS, CNN & TNT] and BET. <br /> Equipment requirements are a cable ready television for basic services or a <br /> converter decoder box for premium services like HBO, Showtime, and Disney. <br /> The operator reported 674 subscription units to these premium services. Note <br /> that many customers subscribe to multiple unit services, like HBO and Disney. <br /> Although no downgrade service charges are assessed, an upgrade service charge <br /> necessitating a truck roll based upon the Hourly Service Charge of$20.28. <br /> Subscribers leasing a converter to view premium and pay-per-view programs, <br /> incur a $2.00 nominal charge for service upgrades performed via computer form <br /> the office. <br /> FINDINGS: <br /> The operator's a-la-carte program service rates are consistent with the <br /> FCC-1215 reporting requirements. The rates appear reasonable in that they are <br /> consistent with similar a-la-carte offerings by other multiple system cable <br /> operators. <br />