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MI • (,E B� <br /> Lu Stevens <br /> General Manager <br /> June 22, 1982 <br /> Mr. Kenne9h Thompson <br /> Orange County Manager <br /> 106 East Margaret Lane <br /> Hillsborough, NC 27278 <br /> Dear Ken: <br /> In our investigation of home monitoring equipment suppliers, we have <br /> found that the technology for provision of home monitoring service <br /> which rely on cable for transmission has not reached a point where <br /> there is a feasible combination of reliability and affordability <br /> available. We have been unable to locate a system where home monitor- <br /> ing services are not being subsidized by the other cable subscribers. <br /> We believe that users of such services should pay for those services <br /> and should not be subsidized by other cable subscribers. <br /> Market studies show that typical home monitoring services would be <br /> desired bylfive to eight percent of the homes in a community. The <br /> most optimilatic projections we can prepare show that in Chapel Hill <br /> and Orange �County, providing these services to only 500 to 800 customers <br /> would have to be subsidized by existing cable customers for the fore- <br /> seeable future.There has ben no request for the service and no perceived demand for <br /> it. It would have to be created by marketing and, based on our ex- <br /> perience, toidate with other aspects of cable, we do not believe we <br /> can exceed the normal level of five to eight percent. <br /> There is considerable evidence that home monitoring, when it becomes <br /> feasible,-will be-combined with other interactive services such as <br /> banking, bill, paying, shop-at-home, cable games and computer communi- <br /> cations. None of these has yet been successfully market tested. <br /> Therefore, Village Cable requests that, rather than be required to build <br /> and providela service as currently specified in our franchise, a pro- <br /> cedure be devised between Orange County, the Town of Chapel Hill, and <br /> Village Cable for a continuing study of the home monitoring business <br /> Mr. Kenneth Thompson - Page Two <br /> which would provide that Village Cable would build and operate the <br /> service in a timely manner when the county, the town and Village Cable <br /> agreed on its feasibility. <br /> Should you have any questions or desire additional information, we will <br /> be pleased to provide it. <br /> Very 'yours, <br /> Lu Stevens <br /> LJS/j# <br />