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

Browse Search

-6- Wake County: Raleigh $1020 Wake County: Rolesville $1I 00 Wake County $1260 Wake County: Wake Forest $11.00 Wake County: Wendell $11.10 Wake County: Zebulon $10.30 Wake Forest $11..00 Wendell $11.10 Wilson $12 40 Zebulon $10.50 Average Selected Rate ~ $11.47 Rationale: The guiding principle of the Cable Act of 1992,3 is to protect subscribers from unreasonable rates by ensuring that cable rate levels aze equivalent to rates that would be charged in the presence of effective competition." Anecdotal evidence of rates examined in six matched pair markets by the GAOS where Cable Operators face true effective wireline competiton reveals that rates in these communities are between I S% and 41 % lowerb than in communities where single providers offer service "at-the-curb.." The GAO reported offered that cable operators tend to lower their rates when they face competition from another wireline provider.' The FCC's rate-making process (forms1240, 1235 & 1205) was originally designed to adjust for defacto monopoly conditions and yield a rate that would be found in the competitive wireline marketplace. 3Specifically, the 1992 Cable Act requues the Commission's regulations "shall be designed to achieve the goal of protecting subscribers of any cable system that is not subject to effective competition from rates for the basic service tier that exceed the rates that would be chazged for the basic service tier if such cable system were subject to effective competition." Communications Act, § 623(b)(I), 47 U.S.C. § 543(b)(1) 4As the FCC stated in its first rate rulemaking order: "The priority established in the Act is clearly to protect the interests of subscribers. An important focus for both basic tier and cable programming service rates, consistent udth providing system operators a fair return, is the establishment of rate levels equivalent to rates that would be charged in the presence of effective competition. The criteria to be applied in setting both basic tier and cable programming service rates include a comparison a~th `the rates for cable systems, if any, that aze subject to effective competition."'See Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992, 8 FCC Rcd 5631 at para Sand footnote 10 [April 1993 Report and Order]. SWire-Based Competition Benefefitted Consumers in Selected Mazkets, United States General Accounting Office, Febmary 2004.. 6GA0 Report Highlights, February 2004 at page I . ~G.0.0 Report, February 2004 at page30.