Agenda - 05-03-2005-5j - Laserfiche WebLink

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-8- Proerazmnine Cost Adjustment: TWC will collect for the projected period ~ $1.19 monthly for NC-0276a, ~ $1,21 monthly for NC-276b, and ~ $1, 31 monthly for NC-0256 per subscriber, during 2005 for anticipated BST external costs, most of which aze attributable to programming costs. Various cable operators have advised that program service providers customarily increase service fees annually. TWC attributes its programming cost changes to what it must pay for each service offered, However, this amount is relatively low compared to upper cable tier service progratruning costs, Some of the BST program services included in the BST service group offered by TWC aze obtained at little cost because they aze either "must-carry" broadcast television stations, public, government or education access channels or "shop-at-home" services. The exceptions aze WGN and News 14 Cazolina FCC Reaulator5 Fees: The Federal Communications Commission collects a "Regulatory Fee" from cable operators to fund the FCC's regulatory oversight of cable tele~rision matters, Although, remitted to the FCC by the cable operator, the regulatory fee is paid by cable television subscribers. The FCC permits cable operators to internalize or externalize the regulatory fee. The fee has risen to 70-cents and is collected incrementally (--$..06/month) from cable television subscribers, These revenues are not subject to franchise fees or other taxes and must be remitted to the federal government to compensate the FCC for the cost of operating the Media Bureau,9 An examination of the monthly bills sent to cable customers determined the fee is external to the monthly BST rate, hence it is excluded from the rate treatment process, If TWC collects the full 6-cents10 monthly, cable television subscribers will contribute around $4,517 " in regulatory fees to the Federal government during the projected period. There are 67 nullion cable television subscribers in the United States which pay the annual 70-cent regulatory fee to the Federal Government. This amounts to $46..9 million annually to fund the FCC's cable television regulatory enforcement activities. Franchise Fees: The County levies a 5% franchise fee which is "grossed up" to 5.25% on cable program services. Government Accounting Office Report: Nationally, rate hikes across most viewed cable tiers averaged 6%. However, in mazkets where there ishead-to-head wireline competition, rates are 15% to 41 % less than in those markets without competition.. GAO reportt2 noted that the cost of programming increased 34% during the past three yeazs, 9The Cabe Service Bureau was folded into the Media Buueau in a recent FCC reorganization.. 10TWC collects 5-cents monthly as observed on subscriber statements ~ ~-6453 cable customers * $ 70= $4517 ~-'GAO Report Highliehts, February 2004 at page ]