Agenda - 04-01-2003-9b - Laserfiche WebLink

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~~ a hard disconnection (Schedule D(E), average time to perform a tier change, and the average time to perform an "apartment" installation (Schedule D(F)). It is the Consultant's opinion that regional FCC Form 1205 filings makbe idsee sebetwe n dvisions of rate base/rate of return regulation. A regional filing limits cross su where regional economic and geographic differences are significant. The concept of cross- subsidy in a company FCC 1205 filing is important because resultant equipment and installation rates are dependent on underlying regional costs. The unintended consequence of the FCC's decision tc ~' anc fil ng is the resulting cross ~ consolidate their balance sheets for the purpose of a p Y subsidization problem. "Super" MSOs serve diverse ge gran~FCC 1205 filingrcosts are shifted they aggregate their balance sheets to create a single co p y from high cost centers to low-cost areas creating rate increases which exceed the CPI. FCC §76.92315 requires the cable operator to provide a general des~p roduces reasonablegates methodology employed and to justify that its averaging methodolo p when it submits its FCC1205 rate filing. Without campeltheg`reasonableness°' testts~Reasonable proposed $37.62 FCC1205 rate does not appear to s fy is defined being as neither immoderate nor excessive, but equitable and fair.lb Time Warner contends, in its appeal of the SmithfieldH iew of BSOTrratesh In ` acatuallty both'Time accuracy is the fundamental guideline governing the r Warner and the FCC have chosen to ignore the actual gs to ensurecrelasonable rates,9(~e., rates Act and the Commission's rate regulation rules which i _ one would see in a competitive market). Spee11992 Cable Atl) required the Commis is on to Protection and Competition Act of 1992 (`th unreasonable rates by ensuring "prescribe rate regulations that protect subscribers from paying that basic service tier and related services and equipment do not exceed rates that would be charged in the presence of effective competition. is declares, in part, an operator electing to aggregate and average Company-wide FCC §76.923 (c)(3) methodolo and justify that its expenses and installation time must provide a general description of the averaging gY averaging methodology produces reasonable rates. 16Black's Law Dictionary, Sixth Edition. 17The law specifies that the Commissiect t of f ct escomperi'tionefro~merates for the basgoservi ertier thag subscribers of any cable system that is not subs exceed the rates that would be charged for the basic service tier if such cable system were subject to effective § 623(b)(1), 47 U.S.C. § 543(b)(1). competition. Communications Act, Action Audits, LLC Cable Rate, Franchise Fee, Utili Tax Auditin & Telecommunication Administration 101 Pocono Lane, Cary, North Carolina 27513-5316 Voice # 919.467.5392 Fax # 919.460.6868