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Time Warner will continue to charge a monthly fee to recover FCC 1235 Network Upgrade costs <br />for 2003; an amount approved several years ago. The charge is added to the BST-Selected rate to <br />create the combined rate subscribers pay. Subscribers will be charged a combined rate which <br />includes the "Add-on" and the BST rates, <br />FCC1205 Equipment & Installation Rates <br />Time Warner calculated the FCCI205 maxinmm permitted equipments and installation rates by <br />aggregating its costs on a national basis, The 2001 year costs were aggregated on a regional <br />basis. 1° Rates climbed steadily until this year when Time Warner sold a significant number of its <br />assets (cable properties) to Bright House Networks, <br />Year HSC +/- "/o <br />increase <br />?001 $28.39 <br />2002 535.83~~ 57.44 2621"/" <br />2003 537 62 51 79 5.00" <br />?004 53750 $-012 -0.32% <br />s§76.923 (c)(I) Costs of customer equipment may be aggregated, on a franchise, system, regional, or <br />company level. When submitting its equipment costs based on average charges, the cable operator must provide a <br />general description of the averaging methodology employed and a justification tlmt its nvernging methodology <br />produces reasonable equipment rates. <br />~§76 923 (c)(3) Installation costs may be aggregated, on a franchise, system, regional, or company Level <br />When submitting its installation costs based on average charges, the cable operator must provide a general <br />description of the averaging methodology employed and a justification that its averaging methodology produces <br />reasonable equipment rates <br />10T ime Warner is treated as a single company for FCC 1205 rate-making purposes T W C files n single FCC <br />t ZOS throughout the United States with over 30001ocal franchise authorities, Lk As, to establish uniform rates [br <br />equipment and installation charges <br />~tCompany-wide national aggregation -.3000 franchises <br />Action Audits, LLC Cable Rate, Franchise Fee, Utility iax Anditing & Telecommunication Administration <br />I OI Pocono Lane, Cary, North Carolina 27513-5316 Voice # 919 467 5392 Fax # 919 460.6868 <br />