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5 <br />-2- <br />total M R. Time Warner is charging 33-cents less than the maximum rate <br />permitted by the FCC. <br />b. Subscribers receiving only BST programming will see their BST rate increase by <br />$1.02, an increase of about 10% over the 2000 BST rate of $10.57. Time Warner <br />estimates it will have 31 BST subscribers in 2001, compared to 30 in 2000. It is <br />estimated that Time Warner will realized approximately $379 in additional BST <br />revenue in 20012 <br />C. Franchise NC-0256: Carrboro system. Subscribers in this franchise are served through <br />the Carrboro system. Time Wainer completed FCC 1240, FCC 1235 and FCC 1205 rate <br />filings for this franchise, which was most recently operated by CVI, Inc. Time Warner <br />acquired CVI in the 1990s. <br />These subscribers will be charged a Combined selected monthly rate of $11.10 for <br />the Basic Service Tier (BST) in 2001. This combined rate includes the BST charge <br />of $9.65 plus the "add-on" cost of service Network Upgrade Charge of $1.45, a <br />$12.07 total NW& The maximum permitted combined monthly rate is $10.62 for <br />Basic plus the $1.45 add-on charge. Time Warner is charging 97-cents less than <br />the maximum rate permitted by the FCC. <br />2. Subscribers receiving only SST programming will see their BST rate increase by $.90, <br />an increase of about 10.5°x6 over the 2000 BST rate of $8.75. Time Warner estimates <br />it will have 351 BST subscribers in 2001, about a 50/9 increase over last year's count <br />of 312. It is estimated that Time Warner will realized approximately $9,190 in <br />additional BST revenue in 2000 <br />D. All Systems <br />1. Mation Adjustments <br />a. In its FCC 1240 rate filing, Time Warner used an inflation factor of 3% for the <br />last three quarters of 2000 of the true up period, because that was the most <br />current rate published by the FCC when Time Warner completed its FCC 1240 <br />form. On October 4, 2000, the FCC released the official inflation figure of 2.4%, <br />which Time Warner did not include in its calculations. If Time Warner had used <br />2$1.02 x 31 subscribers * 12 months = $379. <br />3$.90 x 851 subscribers * 12 months = $9,190. <br />Action &&% LLC Franchise Fee U-Tax Aud un & Telecommunication Administration <br />101 Pocono Lane, Cary, North Carolina 27513.5316 Voice 4 919.467.5392 Fax # 919.460.6868