FCC Cable Forms

FEDERAL COMMUNICATIONS COMMISSION

FCC Cable Forms

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: This document summarizes the revised regulations that will

govern cable service rate regulations by local and federal officials.

As a result of these Commission actions, several FCC forms were

developed in order for the Commission to assess whether rates for

regulated basic cable services and rates for regulated cable

programming services are reasonable.

EFFECTIVE DATE: April 5, 1994.

FOR FURTHER INFORMATION CONTACT:

Michael Rugar at 202-416-0856. For copies of the forms, call 202-416-

0919.

SUPPLEMENTARY INFORMATION: This is a synopsis of the rate regulation

forms developed in response to actions taken in MM Docket No. 92-266,

MM Docket 92-262 and MM Docket No. 93-215, adopted February 22,

1994.\1\

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\1\Not published in the Federal Register.

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1. The Commission adopted a Second Order on Reconsideration, Fourth

Report and Order, and Fifth Notice of Proposed Rulemaking in MM Docket

No. 92-266. The Second Order on Reconsideration describes revised

regulations that will govern cable service rate regulation by local and

federal officials. These regulations will be used by cable operators to

assess whether rates for regulated basic cable services and rates for

regulated cable programming services are reasonable. Generally, the

Commission refined and improved its statistical and economic analysis

of the cable industry, and adopted a new benchmark formula which will

replace the old benchmark formula after May 15, 1994. The benchmark

formula is based on the competitive differential between rates charged

by cable systems subject to effective competition and those charged by

systems not subject to effective competition, and establishes maximum

permitted levels for regulated cable service rates. The Commission has

established a price cap mechanism to govern regulated cable service

rates on a going-forward basis. The revised regulations also include

rules governing permitted rate adjustments for changes in inflation,

and permitted rate adjustments for changes in external costs, for

instance, programming costs associated with new and existing

programming, retransmission consent fees, and taxes imposed on the

provision of cable service. The Fourth Report and Order describes

revised regulations to govern permitted rate adjustments when operators

seek to add or delete channels on regulated service tiers.

2. The Commission also adopted a Third Order on Reconsideration in

MM Docket Nos. 92-266 and 92-262 in which it, inter alia, refined the

calculations necessary to determine permitted equipment and

installation costs. The 1992 Cable Act requires equipment and

installation rates be based on actual cost. Pursuant to this Order,

cable operators must generally calculate and provide their equipment

and installation charges on several occasions: (1) When establishing

maximum initial permitted rates for regulated cable services because

Commission rules require operators to separate out equipment and

installation rates in the determination of initial regulated rates for

basic cable service, and (2) to update equipment and installation

charges on an annual basis.

3. Finally, the Commission also adopted a Report and Order and

Further Notice of Proposed Rule Making in MM Docket No. 93-215

regarding cost-based cable regulation. In that document, the Commission

adopted rules and procedures for cost of service rate showings. Under

these regulations, a cable operator may request relief from the

required reduction in rates by showing that its costs of service are

unusually high. This approach balances the interests of the cable

operators and their customers, permitting operators to recover from

customers only the reasonable costs of providing regulated services,

including operating expenses and a reasonable rate of return. The

Commission provided for reduced showings by small cable systems seeking

to justify rates based on costs. Small systems can use a form that

calls for significantly less information in cost showings than other

operators. This reduces the regulatory burden on those businesses.

4. To implement the rules adopted in MM Docket No. 92-266, the

Commission has developed the following forms.

5. FCC Form 1200, Setting Maximum Initial Permitted Rates for

Regulated Cable Services and Equipment Pursuant to Rules Adopted

February 22, 1994 (the ``First Time Filers Form''). This form is

designed to collect information sufficient to permit an operator

regulated by a local franchise authority or the FCC to calculate

figures relating to regulated revenues per subscriber as of March 31,

1994, figures relating to the benchmark as of that date, and figures

relating to the Full Reduction Rate, which reflects application of the

full 17 percent competitive differential. This form then compares these

sets of figures to derive the maximum permitted rates for regulated

cable services as of May 15, 1994. The form will be filed with local

franchising authorities (or the FCC in limited circumstances) in

response to basic service rate regulation, and with the FCC in response

to cable programming service rate complaints. OMB Control Number: 3060-

0571, estimated annual burden: 11,200 responses; 20 hours per response;

224,000 hours total annual burden.

6. FCC Form 1201, Facsimile Request. This form permits cable

operators to request assistance from the Commission in completing FCC

Form 1200. The operator may request assistance in determining the

census income figure, the revised benchmark calculation and the channel

adjustments. OMB Control Number: 3060-0597, estimated annual burden:

14,000 responses; 1 hour per response; 14,000 hours total annual

burden.

7. FCC Form 1205, Determining Costs of Regulated Cable Equipment

and Installation. This form collects information sufficient to allow a

cable operator to determine the costs associated with regulated

equipment and installation for the basic service tier and the maximum

permitted charges for such equipment. This form will be filed in

conjunction with FCC Form 1200, to update equipment and installation

charges on an annual basis. The form will be filed with local

franchising authorities (or the FCC in limited circumstances) in

response to basic service rate regulation, and with the FCC in response

to cable programming service rate complaints. OMB Control Number: 3060-

0592, estimated annual burden: 16,600 responses; 20 hours per response;

332,000 hours total annual burden.

8. FCC Form 1210, Updating Maximum Permitted Rates for Regulated

Services and Equipment. This form collects information sufficient to

allow the operator to calculate changes in external costs, addition and

deletion of channels, and inflation that have taken place since March

31, 1994. The form may be filed up to four times per year, once in each

calendar year quarter, by operators wishing to claim adjustments to

maximum permitted rates to reflect increased costs. This form must also

be filed if there is a decrease in costs and to reflect channel

deletions. The form will be filed with local franchising authorities

(or the FCC in limited circumstances) in response to basic service rate

regulation, and with the FCC in response to cable programming service

rate complaints. OMB Control Number: 3060-0595, estimated annual

burden: 33,600 responses; 10 hours per response; 336,000 hours total

annual burden.

9. FCC Form 1215, A La Carte Channel Offerings. This form is

designed to collect and compare information about channels offered on

an individual (a la carte) basis and packages of these channels offered

on April 1, 1993. This form must be filed by the cable operator in

conjunction with each FCC Form 1200 and FCC Form 1210. The form will be

filed with local franchising authorities (or the FCC in limited

circumstances) in connection with basis service rate regulation, and

with the FCC in response to cable programming service rate complaints.

OMB Control Number: 3060-0593, estimated annual burden: 44,800

responses; 1 hour per response; 44,800 hours total annual burden.

10. To implement the rules adopted in the Report and Order and

Further Notice of Proposed Rule Making in MM Docket No. 93-215, the

Commission has developed the following forms.

11. FCC Form 1220, Cost of Service Schedule. This form is designed

to be used by cable operators wishing to justify rates above levels

determined under the benchmark approach. The form will be filed with

local franchising authorities (or the FCC in limited circumstances) in

response to basic service rate regulation, and with the FCC in response

to cable programming service rate complaints. OMB Control Number: 3060-

0594, estimated annual burden: 2,100 responses; 80 hours per response;

168,000 hours total annual burden.

12. FCC Form 1225, Cost of Service Schedule For Small Systems. This

form can be used by independent small systems and by small systems

owned by a multiple system operator that services 250,000 subscribers

or less, has no system with more than 10,000 subscribers, and has an

average system size of 1,000 subscribers or less. The form will be

filed with local franchising authorities (or the FCC in limited

circumstances) in response to basic service rate regulation, and with

the FCC in response to cable programming service rate complaints. OMB

Control Number: 3060-0596, estimated annual burden: 700 responses; 60

hours per response; 42,000 hours total annual burden.

13. Note: The information collections associated with this notice

have been approved by the Office of Management and Budget for ninety

days under the emergency processing procedures contained in 5 CFR

1320.18 and assigned the OMB numbers listed above. The Commission will

resubmit these collections during this ninety day period for routine

clearance. Copies of these OMB submissions may be purchased from

International Transcription Service, Inc., 2100 M Street, NW., suite

140, Washington, DC 20037 (202) 857-3800. Comments for these

information collections are encouraged and will be accepted until June

5, 1994. Persons wishing to comment on these information collections

should contact Timothy Fain, Office of Management and Budget, room 3221

NEOB, Washington, DC 20503. Printed copies of these forms may be

obtained by calling (202) 416-0919, or by writing to Federal

Communication Commission, Cable request Form (specify form number),

P.O. Box 18238, Washington, DC 20036. They will also be available in

room 207, 2033 M Street NW., Washington, DC.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 94-8220 Filed 4-4-94; 8:45 am]

BILLING CODE 6712-01-M