TO: |
Roger L. Stancil, Town Manager |
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FROM: |
Catherine Lazorko, Public Information Officer |
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SUBJECT: |
Consideration of Resolution Finding Time Warner Cable Basic Service Tier Rates Consistent with Federal Regulations |
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DATE: |
January 14, 2008 |
Federal regulations allow the Council to review Time Warner Cable Basic Service Tier rates to determine whether such rates are accurately calculated and consistent with applicable rules. The purpose of this memorandum is to provide information about the rates that are to become effective in January 2008.
A resolution is attached, which accepts the cable consultant’s report and finds Time Warner’s proposed rates to be accurately calculated according to FCC rules and regulations.
A public notice about this matter was published in the local newspaper, The Chapel Hill News, and a news release was issued by the Communications and Public Affairs Department.
On December 11, 2007, Time Warner Cable notified us (Attachment 1) of its rates for 2008, following its submission of FCC Forms 1240 and 1205 (Attachment 2). The rate for Basic Cable Service for Chapel Hill has remained unchanged, while the rate for Basic Cable Services for Durham will increase from $13.91 to $13.95.
The rates for Tier 2 and Digital Tier, both of which are unregulated, also have increased (Attachment 3). Chapel Hill customers receiving Basic Cable Service, Tier 2 and Digital Tier have seen an increase from $64.20 per month in 2007 to $67.22 per month in 2008. Monthly rates for Durham customers receiving the same service level will increase from $64.75 in 2007 to $68 in 2008.
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Time Warner Cable Basic Tier Rates
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|
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2008 |
|
Chapel Hill System |
$7.70 |
$7.70 |
$9.04 |
$7.67 |
$8.28 |
$9.50 |
$10.10 |
$11 |
$11.25 |
$10.60 |
$10.60 |
$9.35 |
|
Durham System (520) |
$9.63 |
$10.00 |
$10.25 |
$9.99 |
$12.39 |
$13.70 |
$13.40 |
$14.25 |
$14.30 |
$14.50 |
$14.50 |
$13.95 |
In addition to the Basic Cable Service, the Town reviews the rates on some cable equipment and installation rates. Other cable television services such as Tier 2 and Digital Tier are not subject to regulation by either local franchising authorities or the FCC. Basic Cable Service consists of approximately 22 channels of mainly broadcast stations that are received off the air and public, education and governmental access channels. Tier 2, according to Time Warner Cable, consists of approximately 52 channels for both Durham and Chapel Hill. The Digital Tier currently consists of approximately 90 video channels.
Each year, Time Warner furnishes the Town with information about rate changes, which this year we provided for review to Robert Sepe, the Town’s cablevision consultant. Dr. Sepe has reviewed the data to determine whether Time Warner calculated the updated Basic Service Tier rates in a manner consistent with Federal Communications Commission (FCC) guidelines, the Time Warner Social Contract, and the Telecommunications Act of 1996. It is the consultant’s conclusion that the Basic Service rates are accurately calculated according to the rules of the FCC (Attachment 4).
RECOMMENDATION
That the Council adopt the attached resolution, which accepts the consultant’s report and finds Time Warner’s proposed rates to be accurately calculated according to FCC rules and regulations.
ATTACHMENTS