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4 <br />On October I, 2003, Time Warner Cable submitted a FCC1240-Basic Cable Service Tier and <br />FCC 1205-Equipment and htstaflation charges to seek an upward adjustment in the rate charged <br />for basic cable television service, installation and equipment rental for the 2004 calendar year. <br />The consultant evaluated the information Time Warner Cable (TWC) submitted, requested and <br />received supplemental information and evaluated the information with respect to conformance to <br />FCC rules. The Consultant performed independent calculations to verify the proposed rate <br />structure sought.. <br />Orange County is composed of hvo federally identified cable television dishicts, NC-0276a, <br />NC0276b and a third federal district identified as NC-0256.. The smallest federal district, NC <br />02766, has 29 cable households. NC-276a has 5753 cable households. NC-0256 has 724 cable <br />households. <br />a. NC-0256 TWC subscribers will be charged a "selected" monthly rate of $1.3.00 <br />for the Basic Service Tier (BST) in 2004 which is slightly below the Maximum <br />Permitted Rate (MPR). The MPR includes the BST charge of $ 11.84 plus the <br />"Add-on" Cost of Service Network Upgrade Charge of $1.45. The "selected" <br />monthly combined rate of $1.3.00 is 29-cents less than the Maximum Pernitted <br />Combined Rate of $1.3.29, and represents a $1.26 rate hike in the "selected" <br />monthly combined rate over the prior year, <br />NC-0276a TWC subscribers will be charged a "selected" monthly rate of $12.25 <br />for the Basic Service Tier (BST) in 2004 which is slightly below the Maxinuun <br />Permitted Rate (MPR). The MPR includes the BST charge of $10..76 plus the <br />"Add-on" Cost of Service Network Upgrade Charge of $1.81. The "selected" <br />monthly combined rate of $12.25 is .32-cents less than the Maxinnnn Permitted <br />Combined Rate of $12.57, and represents a .30-cent reduction in rate in the <br />"selected" monthly combined rate compared to the prior year. <br />NC-0276b TWC subscribers will be charged a "selected" monthly rate of $14.30 <br />for the Basic Service Tier (BST) in 2004 which is slightly below the Maximum <br />Permitted Rate (MPR). The MPR includes the BST charge of $13,40 plus the <br />"Add-on" Cost of Service Network Upgrade Charge of $2.1 I . The "selected" <br />monthly combined rate of $14.30 is $1.21 less than the Maximum Pernitted <br />Combined Rate of $15.51, and represents a $1.79 rate hike in the "selected" <br />monthly combined rate over the prior year. <br />Action Audits, LLC Cable Rate, Franchise Pee, Utility Tax Auditing Sc Telecommunication Administration <br />I OI Pocono Lane, Cnry, North Carolina 27513-5316 Voice ;P 919 467 5392 Pax g 919.460.6868 <br />