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18 <br />Recommendation <br />The Consultant recommends the County: <br />Approve the FCC1240 maximum permitted BST rate and the FCC1235 "Add-on" rate <br />applications and FCC 1205 Equipment and Installation rates submitted by Time Warner <br />Cable as compliant with FCC rate regulations and approved subject to conditions. <br />Marketplace Competition <br />Cable television service rates in the United States increased more than 6 percent last year, while <br />the number of new subscribers declined said the Federal Communications Commission in the <br />Ninth Annual Video Competition Report released December 31, 2002. Meanwhile Cable TV's <br />direct-broadcast satellite principal challenger EchoStar Communications will hike monthly Dish <br />Network fees by $2 starting February 1, 200318. <br />The FCC reported that about 69 million people subscribed to television service through a cable <br />operator like the Time Warner, Charter Communications or Mediacom. Meanwhile, satellite <br />companies have expanded their reach to about 18 million customers. But cable operators signed <br />up only 250,000 new subscribers during the 12-month period ending June 2002, compared with <br />1.1 million new subscribers the year before. Satellite services added two million subscribers in <br />the same period. <br />Proceeding <br />The franchise authority must either approve or deny the operator's FCC1240 BST, FCC1235 <br />Upgrade "Add-on" charge and FCC 1205 Equipment and Installation charges by finding the rates <br />to be either reasonable, or not reasonable. This determination must be based upon a finding of <br />fact. The franchise authority should adopt the Consultant's report as its own, and the public must <br />be granted an opportunity to offer comment on the matter. It is suggested that a public comment <br />period on the matter coincide with a regular public meeting. <br />A rate order, conveying approval is attached. To be valid, the order must be executed following <br />the conclusion of: <br />a. a public meeting where the County grants interested parties an opportunity to <br />comment; and <br />18Multichannel News, Karen Brown 1/9/2003 <br />Action Audits, LLC Cable Rate, Franchise Fee, Utility Tax Auditing & Telecommunication Administration <br />101 Pocono Lane, Cary, North Carolina 27513-5316 Voice # 919.467.5392 Fax # 919.460.6868 <br />