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S <br />Effects of Competition <br />One of Wall Street's top cable analysts, Morgan Stanley Dean Witter analyst Richard Bilotti, <br />recently said the nation's top MSO's may face stiff competition in selling Internet, phone and <br />digital video services due to robust DBS offerings and stranger services by telephone companies. <br />He believes that cable operators will not be able to raise prices far non-cable services by more <br />than about 3 percent a year because of strong competition. Tough competition for cable <br />customers by traditional telephone and satellite providers will cause cable operators, like TWC, <br />to bundle telephone and high speed Internet services together with cable television packages at <br />modest incremental prices. <br />Proceeding <br />The franchise authority must either approve or deny the operator's BST FCC 1240 rate request, <br />finding the rate to be either reasonable, or not reasonable. This determination must be based <br />upon a finding of fact. The franchise authority should adopt the staff report as its own and the <br />public must be granted an opportunity to offer comment on the matter; it is suggested that the <br />public comment period coincide with a regular public meeting. <br />A rate order, conveying conditional approval is attached. To be valid, the order must be executed <br />following the conclusion of: <br />a. a public meeting where the commission grants interested parties an opportunity <br />to comment; and <br />b. adoption by the commission of the report as its own - required by FCC rules <br />(requires a motion to adopt and a vote). <br />It is appropriate for public comment to be heard, as related to BST rate issues, at the time the <br />Commission meets to deliberate upon this matter. A statutory public hearing is not required. It <br />is customary to call for a public comment in these matters; the comment period maybe <br />publicized by issuing a press release to the print and electronic media, and otherwise announce <br />the call for public comment in other ways. The company must be notified of the public meeting <br />and advised to have a representative present to offer comment. <br />