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Home My WebLink About1993 TCI CablevisionWe're taking television into tomorrow sM~l TCI Cablevision of Treasure Valley HAND DELIVERED December 1, 1993 City of Meridian Attn: Mayor Grant Kingsford 33 E. Idaho Meridian, ID 83642 Dear Mayor Kingsford: .~~~:~,' t~~C ~ 4 ~ Enclosed is our check in the amount of $28,537.87 in payment of the franchise fee for the period of October 1, 1992 to September 30, 1993. This amount represents 3 percent of gross subscribers income and was calculated as follows: 4th Quarter $ 6,529.76 1st Quarter $ 6,920.04 2nd Quarter $ 7,343.92 3rd Quarter $ 7,744.15 Total Amount Due $28,537.87 Please acknowledge receipt of this payment by signing and returning the enclosed copy of this letter. If you have any questions please don't hesitate to call. Sincerely, Wayne H. Watson General Manager Received By Date ~~ 1~~g3 WHW/bb/whw0ldec.l Boise Office 8400 Westpark Street P.O. Box 44 Boise, Idaho 83744 (208) 377-2491 FAX (208) 375-7500 An Equal Opportunity Employer CITY OF MERIDIAN MARCH 1993 TCI Cablevision of Treasure Valley We're taking television into tomorrow. GROWTH Service Area Expansion 1992 1993: Total Number of Pr}ojects .................104 250 Miles of New Cable Installed..... ..64 laQ New Homes Passed ..........:....... .....4,528 5,650 Miles of System Rebui[t :...................28 40 Subscriber Growth 60,000 50,000 40,000 30,000 20,000 10,000 0 ~~ Thirteen-Year Growth Com parison 1979 ' 1992 Households Served..,......., ........... ...1,000 54,900 Number of Channels ............ .... ..........19 37 Mies of Cable Installed ......... ... ..........15 ' 1,374 Employees .................................... .......50 115 Homes Passed ................................. ...5,585 107,366 80 81 82 t3:3 84 tS, tS6 ts/ tSts ay Yv ~ ~ ~c '` 1992 IN REVIEW # Merger o nUe to TCI Cablevislon of Treasure Valley effective AuguDst 17,1992991. Name ch g # Expanded customer service telephone hours. Monday-Friday 8 a.m. to 8 p.m. Saturday 8 a.m. to 5 p.m. # New Services Added - V1SN /ACTS - Prime Sports Northwest - Encore - Digital Music Express # Competitive Market - MMDS - SMATV - DBS - Telephone Companies - CATV # 1992 Cable Act - October 1992 -FCC has six months to rule on rebroadcast provisions. Delayed. - December 1992 -Cable companies begin itemizing franchise fees St taxes on subscriber bills. - FCC begins study of sports migrating to pay TV. exclusive ~ranchisesse additional cable franchises and no longer grant - Cities may operate a cable system in competition with exiting operator. - 30-day notice requirement to offer previews of services with R or NC 17 ratings. - 30~ay notice of channel reassignments or programming changes. - February 1993 -New standards for decency on access cable channels. - Apri11993 -FCC determines communities with effective cable competition. - FCC sets rules to ensure rates for basic service (local broadcast, independent, - educational and governmental stations) in communities without competition are "reasonable:' - FCC determines if city, county or state should have the power to regulate - rates in a community. - 30-days notice requirement of any basic rate increases. - -New standards for installation, lease and monthly lease of equipment (converters and remote control]. - FCC can require rollbacks of unreasonable rates and demand refunds. -Guidelines on customer service go into effect - October 1993 -FCC issues report on average price of cable programming and equipment. - April 1994 -FCC submits first annual report to Congress on competition in program delivery. - October 1995 -FCC gives final report to Congress on sports migration. FINANCIAL INFORMATION . Expenses Adminutrna6odn , 8~ _. Programmin~ .................................................32°/a 21~ (Basic, Premium, ay-Per-View) General Administration .............................21°/a 2~ Franchise 8T Copyright Fees .....................18% Salaries, Wages, Benefits, Taxes ................29°/a (all figures fn tfrousands) - 4,000 3,500 _ 3,000 2,500 2,000 - 1,500 1,000 - 500 Programming Revenues .... Basic Service .................................................... 71.5% Miscellaneous ................................................. .5.2% Advertising Sales ........................................... 2.8% _" Pay-Per-View ................................................... 1.5% Premium Service ............................................ 18.8% Primestar ........................................................... .2% 32~ Franchise & Copyright Fees Salaries, Wages, Bene6h, Taxes Pro~ramminy (Basic, Premwm, Pay-Per-Yew) ~~>>` 1991 ~ 1992 Primestar Pay-Per-View Purchases Advertising ~ 8 8~ Soles ~ Premium Service Subscriptions Basic Service Capital 8iC Plant Maintenance Capital investment in facility and new plant in 1992 was over $1.3 million. Maintenance on existing _ plant in 1992 was approximately $120,000. General Franchis Salaries Administration & Copyrig~t Wag s, Fees Bene~ts CUSTOMER SERVICE Employee Training Ail TCl employees complete a customer service course call 'The Customer _ 1st" as a starting point for professional development. `The Customer 1st" is an attitude and philosophy that reflects our way of doing business. Ongoing testing and certification through the Society of Cable Television - Engineers and the National Cable Television Institute is critical for our employees to remain knowledgeable about technical operations and to provide professional installation and maintenance services quickly and effl- _ ciently. Dedication to Customer Service TCI continues to increase its staff to meet customer service levels and growth demands. We expanded our service hours Monday through Saturday. And we're expanding our Regional Telephone Service Center to - offer 24 hour service without automated equipment. ,~o no w ~w., goo O .~ a. ~ 90 w -( EMPLOYEE GROWTH ~- 11J ............................................................. fi~ ._~ i I ~6 r Jan. 1988 Dec. 1988 Dec. 1989 Dec. 1990 Dec. 1992 YEAR Proven Performance 1992 Average '~ Telephone Service Response Rate .......................................................97% _ '~ Average Hold Time ....................................................................30 seconds '~ Technical Assistance Within 24 Hours ..........................................100% # Reliability of Cable Service ................................................................99.9% COMMUNITY INVOLVEMENT - Civic Duties ~ Provide gratis cable service to civic and governmental offices throughout the area. # Participated in MDA "Cable Cares" program. # Donated company and employee funds and resources to United Way. Education # Provide gratis cable service to over 70 schools in Ada and Canyon Counties. - # Supply elementary schools with a personal computer information service called XPress XChange. ~ TCI and C-SPAN national grant awarded to Centennial High School (TV, VCR, equipment cart # Underwriting of 20 area schools to see the Idaho Theater for Youth production of "Moss Gown:' # In 1992, initiated an ongoing Scholarship for Academic Excellence program. - Local Origination Programming '~ Sports -High school football and basketball, racquetball tournament, Boise Hawks, - Ski Scene, Jeff Caves' "One on One." '~ Political -One-percent Initiative city council meetings, local election candidates forum. '~ Public Service -Paint the Town, Cystic Fibrosis Auction. _ '~ Cable 8L You -Programs to help customers gain perspective on cable television issues. '~ Resource -Available for constituent communications - PROGRAMMING In 1992, TCI Cablevision of Treasure Valley added three new programming services to its channel line-up: Prime Sports Northwest, VISN/ACTS, and Encore. We also introduced a revolutionary home stereo _ service: Digital Music Express (DMX]. 1993 began with TCI providing more service options by offering a no-frills, low-cost cable package. In _ order to provide this option, we reconfigured our two existing levels of service: Basic and Expanded Basic. It was necessary to relocate eight channels to provide for this entry-level basic service. BASIC KBCI, Prevue Guide, KAID, KIVI, KTVB TBS, WGN, TCI I0, C-SPAN [I, C~PAN 1,' KTRV EXPANDED BASIC The Discovery Cha'nnei, ESPN, TNT, USA, CNN, American Movie Classics, QVC Prime Sports Northwest, VISN/ACTS, The Family Channel, Nickelodeon, MTV, VH-],'Nashville Network, Lifetime, Weather Channel, CNN Headline News, CNBC, ABZE, Unvision ~ 1992 Rates ~ Basic ..........................$10.40 Expanded .................$1 I.05 Combined ...............$21.45 1993 Rates (Effective May 1993] Basic .......................$10.40 Expanded .............$11.50 Combined............$21.90 While TCI Cablevision remains one of the best entertainment values available, like any business, we face - increases in our operating expenses, including taxes, insurance and utilities. Many of our costs are unique to the cable industry, such as programming copyrights and distribution equipment. To accom- modate our cost increases, it is necessary for us to make a modest adjustment to our rates for certain _ services. PREMIUM SERVICES Service Option 1992 Rate Effective May '93 Change l Premium Channel# ......................................................................$10.95..........................$11.25.......................................30¢ 2 Premium Channels ......................................................................$18.90..........................$18.90.......................................N/C 3 Premium Channels ......................................................................$26.85..........................$26.85 ......................................N/C - 4 Premium Channels .....................................................................$29.95..........................$29.95.......................................N/C Encore .................................................................................................$ 1.50..........................$ 1.50.......................................N / C - Encore w/another Premium Channel ......................................$ 1.00..........................$ 1.00.......................................N / C Ail 5 Premium Channels~ ...........................................................$30.95..........................$30.95.......................................N/C # Premium channel price has not increased since 1988. O Complimentary Remote Control no longer offered. OPTIONAL SERVICES Service 1992 Rate Effective May '93 - Pay-Per-mew Equipment ..................................................................$ 3.50...........................................................$ 3.50 Digital Music Express ........................................................................$12.95...........................................................$ 9.95 - (service 8C equipment) Cable Guide ....................................................................................... $ 1.25........................................................... $ 1.25 (or;9.9S annually) (or;9.9S annually) SERVICE WORK RATES - See attached addendum - RATE ADJUSTMENT CUSTOMER COMMUNICATION # Press Release _ # Customer Letter March 29 # Billing Message on May Statements - # "Cable 8t You" April Program sM~) TCI Cablevision of Treasure Valley FOR IMMEDIATE RELEASE March 29, 1993 CONTACT: WAYNE WATSON TCI CABLEVISION OF TREASURE VALLEY (208)377-2491 We're taking television into tomorrow *TCI CABLEVISION OF TREASURE VALLEY ANNOUNCES MODEST RATE CHANGE* Rate Adjustment to Cover Rising Cost of Programming and to Reep - Pace with Regional Inflation Factors (Boise, ID) -- TCI Cablevision of Treasure Valley, which provides cable television service to Ada and Canyon counties, announced today it will modify monthly cable TV subscription rates effective in May to keep pace with operating cost increases and programming supplier increases. "Basic Service" will not be affected, and remains $10.40 for 10 channels. "Expanded Service" will increase $.45 per month from - $11.05 to $11.50 for a combined price of $21.90 or a modest adjustment of 2%. Single premium services (HBO, Showtime, Disney or Cinemax) will increase from $10.95 to $11.25 or 3%, however, multi-pay or discounted packages will remain unchanged. The adjustments are - consistent with the Company's policy to maintain Basic rates at or below the rate of inflation. "Despite our best efforts to reduce internal expenses, Boise Office 8400 Westpark Street P.O. Box 44 Boise, Idaho 83744 (208) 377-2491 FAX (208) 375-7500 An Equal Opportunity Employer Rate Change--page two - we still have to cope with higher costs from external factors. These costs include rising utility rates, taxes and increased operating expenses every business has to pay plus many unique to our business," said Wayne Watson, General Manager of TCI Cablevision of Treasure Valley. "We also believe it is vital to help our employees cope with inflation by continuing to provide competitive wages." ~'" "The 1993 rate adjustment also reflects the increased fees we pay for the popular programs our customer want to see. Cable networks pass along a portion of their expense for these programs _ to TCI Cablevision. To maintain the level of service our customer expect, we need to raise our rates to cover these cost increases." "As many of our customer may know, on October 5, 1992 Congress passed legislation which, among other things, provides for FCC oversight of "Basic" cable television rates. This provision becomes effective April 1993," Watson added. "We, of course, intend to comply with all regulatory procedures resulting from the legislation, and feel that these rate adjustments are within the intent of the legislation." The upcoming price adjustment, according to Watson, is consistent with provisions of the new cable legislation. City and county officials have been notified of this decision by the cable - company. Rate Change--page three This increase is small compared to programming fee hikes of more than 30% in the last four years. Programming fees alone represent roughly 30% of the customer's monthly bill. This is the fastest growing cable expense area. An important example of cable's efforts to reduce the impact of rate increases is the move toward "unbundling" traditional basic and pay package options which began three years ago. Known - initially as "Plus Service" and now as "Expanded Basic", this optional level of service includes ESPN, TNT, CNN and USA that have been actively acquiring and producing new programs and are therefore unable to assure cable operators that their rates will stay at or below the cost of inflation. As part of the upcoming rate adjustment, TCI Cablevision's "Expanded Basic" rate will go up 45 cents to $11.50 per month. In addition to the programming costs that are passed on to TCI Cablevision by network programmers, the cable operator has increased the number of viewer options during 1992 to provide greater value to the monthly subscription package. Since January of last year, the following cable services have been added to the menu: Prime Sports Northwest, VISN and Encore. "Nothing compares with cable when it comes to delivering hundreds of movies, specialty channels and premier events," said _ Watson. "There are few, if any, entertainment options that can beat cable's value at fractions of a penny per show." -' TCI Cablevision of Treasure Valley serves 55,000 households throughout the Treasure Valley. # # # We're taking television into tomorrow. SM~j TCI Cablevision of 1 Treasure Valley March 29, 1993 Dear TCI Customer: TCI Cablevision is one of the best entertainment values money can buy. We've worked hard to keep cable service as economical as possible, and we will continue to do so. Like any business, we face increases in operating expenses, including taxes, insurance _ and utilities. Many of the expenses we incur are unique to the cable industry. Costs related to programming, copyrights, and equipment make up the majority of your cable bill. To accommodate our increased cost of doing business, it is necessary to make some modest adjustments to the cost of services you receive. Effective May 1, 1993, the following new rates will appear on your cable bill: _ BASIC SERVICE (10 Channels) $10.40 per month EXPANDED BASIC (20 Channels) $11.50 per month -" BASIC/EXPANDED COMBINED $21.90 per month SINGLE PREMIUM CHANNEL $11.25 per month The above services are the only ones affected by our new _ rates. They do not include taxes or franchise fees, which vary according to the level of your service. Congress recently adopted legislation which extends greater regulation over cable television rates. The Federal Communications Commission is expected to adopt rate regulation guidelines and rules by April, 1993. Based on current information, we believe the _ rate adjustments we are taking are consistent with the provisions of the new law. We regret we cannot yet answer all your questions on the new legislation until the FCC acts. We are committed to complying with the new rules and doing all we can to make cable television programming and services even better. Boise Office 8400 Westpark Street P.O. Box 44 Boise, Idaho 83744 (208) 377-2491 FAX (208) 375-7500 An Equal Opportunity Employer In February, you received a new channel line-up card reflecting changes that became effective March 17. Equipment - necessary to move Cinemax to channel 21 has been delayed. You can continue to en~ov Cinemax on channel 18 and CNN on channel 21. We anticipate complet our channel realignment in early April, at that time Cinemax will move to channel 21 and CNN will move to channel 18. Everyone at TCI is dedicated to providing superior customer '- service and exceptional value for your entertainment investment. We truly appreciate having you as a customer, and we encourage you to call us with your questions or comments. Respectfully, Wayne H. Watson WHW/bb _ ~~~~~ TCI Cablevision of Treasure Valley March 29, 1993 Dear TCI Customer: We're taking television into tomorrow. TCI Cablevision is one of the best entertainment values money can buy. We've worked hard to keep cable service as economical as possible, and we will continue to do so. Like any business, we face increases in operating expenses, including taxes, insurance and utilities. Many of the expenses we incur are unique to the cable industry. Costs related to programming, copyrights, and equipment make up the majority of your cable bill. '-" To accommodate our increased cost of doing business, it is necessary to make some modest adjustments to the cost of services you receive. Effective May 1, 1993, the following new rates will - appear on your cable bill: _ BASIC SERVICE (10 Channels) $10.40 per month EXPANDED BASIC (20 Channels) $11.50 per month "" BASIC/EXPANDED COMBINED $21.90 per month SINGLE PREMIUM CHANNEL $11.25 per month REMOTE CONTROL $ 3.50 per month The above services are the only ones affected by our new rates. They do not include taxes or franchise fees, which vary according to the level of your service. Your complimentary remote control service is no longer offered, effective with your May billing. _ Congress recently adopted legislation which extends greater regulation over cable television rates. The Federal Communications Commission is expected to adopt rate regulation guidelines and rules by April, 1993. Based on current information, we believe the rate adjustments we are taking are consistent with the provisions of the new law. We regret we cannot yet answer all your questions on the new legislation until the FCC acts. We are committed to complying with the new rules and doing all we can to make cable television _ programming and services even better. Boise Office 8400 Westpark Street P.O. Box 44 Boise, Idaho 83744 (208) 377-2491 FAX (208) 375-7500 An Equal Opportunity Employer - In February, you received a new channel line-up card reflecting changes that became effective March 17. Equipment necessary to move Cinemax to channel 21 has been delayed. You can ... continue to en~oy Cinemax on channel 18 and CNN on channel 21. We anticipate completing our channel realignment in early April, at that time Cinemax will move to channel 21 and CNN will move to channel 18. Everyone at TCI is dedicated to providing superior customer service and exceptional value for your entertainment investment. We truly appreciate having you as a customer, and we encourage you to call us with your questions or comments. _ Respectfully, Wayne H. Watson WHW/bb DLK/3-3-93 SERVICE WORK CHARGE CODES ID Installation 40.00 w.~,w.~ - IS Installation 30.00 *IE Direct Sales Install 10.00 II Installation 40.00 *EZ Non-Standard Install OPEN IA Activate Existing AO 30.00 - ~ Install New AO 40.00 *IC Installation 9.99 - *IG Installation 9.95 *IH Installation (Half-Off) 19.95 *I~' Installation 5.00 IV Install VCR 24.95 - RC Reconnect 30.00 RO Reconnect 30 00 . ~5.~,~5.~ - RM Reconnect/with Outlet Move 40.00 RL Move TV outlet 40.00 .... *RD Reconnect 9.99 *IF Direct Sales Reconnect 10.00 - IP Pay Install 24.95 IJ Addl. Outlet Install 10.00 - *HC Half Off Pay Install 12.45 CA A/B Switch Install 24.95 "' ~ Counter Change of Service 10.00 IU DMX Install 40.00 - ~' Add DMX 24.95 - * Rates are for special promotions ONLY -please check the current cam paign before using. ~ECE~'~J~L~ AUG 2 5 1993 CIT4' ~~ IN£~y~~A~d FRANCHISE AUTHORITY _ PRESENTATION AUGUST 1993 TCI Cablevision of Treasure Valley We're taking television into tomorrow. We're taking television into tomorrow 3M~ ~ TCI Cablevision of Treasure Valley August 23, 1993 - To comply with federal regulations under the 1992 Cable Act, we will be making some changes in our channel line-up and fees for service. These - changes will take effect on September 1, 1993. The Federal Cable Act of 1992 is a complex issue. As a result of the federal rate formula, some portions of a customer's bill may decrease while others may increase. The greatest savings will be experienced by those customers with current equipment fees (converter box and/or remote). Each bill is unique - due to the combination of services and equipment. In addition, to accommodate the government's formula and must-carry rules, - we will also be making some changes in the channel line-up. Here are the changes we are going to make on service effective September 1 S, 1993: h~ New Channel # Current Channel # WGN 3 9 KHDT g Lifetime 16 31 QVC 17 2 3 Weather Channel 18 3 2 - CNBC/VISN 19 34/25 TNT 23 16 USA 25 17 - AMC 31 19 CNN 32 18 - Prevue Guide 34 3 Boise Office 8400 Westpark Street P.O. Box 44 Boise, Idaho 83744 (208) 377-2491 FAX (208) 375-7500 An Equal Opportunity Employer Here are the changes we are making on rates, effective September 1, 1993: _ ~-~ Current Ada County Canyon County Basic Service $10.40 $ 9.77 $ 9.74 Expanded Basic 11.05 11.17 11.14 Sin_~le Premi ~m ~P~;ces HBO 11.25 12.20 12.20 Cinemax 11.2 5 12.20 12.20 Showtime 11.2 5 12.2 0 12.2 0 Disney 11.2 5 11.2 5 11.2 5 Encore 1.50 1.75 1.75 We realize that the speed with which these changes have come may be _ frustrating to customers. Please remember that we are complying with complex federal regulations in the timeframe they have given us. We are doing our best to inform our customers through newspaper ads, public service _ announcements, news releases, and mailed notices. In addition, there may be some further local broadcast programming changes necessary. Under the cable act, local broadcasters may deny us permission to carry their programming on the cable system. TCI will continue to carry local broadcast stations as long as they allow us to do so. We will continue to keep you informed of any new developments. In the meantime, if you have any questions, please call me at 3 77-2491. Sincerely, c~ ~ Wayne H. Watson General Manager cc: File MEEI~IG AGINDA _ August 25, 1993 t f f t Introductions Overview FCC Rules and Regulations Fiber Rebuild Project Open Forum Closing ov~vlEw f TCI Cablevision of Treasure Valley • Revenue loss approximately S600,000 annually. '~ • Difficulty with franchise fee forecasts. f Customer Impact • Some customers will see rate relief and some customers will see an _ increase. • Benchmark rates and calculations. • Premium service rates. - - Increase for single premium customers. - Multiple premium service packages unchanged. • Channel reallocations. • Customer communications. f Cable television is still a discretionary service. COMPEITTIVE MARKET OVERVIEW + Entertainment and Information Market • Discretionary income .. • Not an essential service _ + Competitive Entrants to Multichannel Video Delivery • MMDS: Northwest Cable TV • Big Sky Communications - - SMATV: Satellite Master Antenna Television - Cable television system operator - • Boise -Ada Cable • DBS: C-band delivery and high-powered delivery • Echo Star - • Telcos _ + Non-Exclusive Agreement • Only requesting level playing field + Public Policy Issues - • Qualifications: technical and financial • Service to greater community area: "Universal Service" • Process and procedures to grant multiple franchises - + Video Telephone, and Computer Technology are Converging FCC RULES AND REGULATIONS + Benchmark Rates and Service Rates ~~~ ~~ ~ _ Ada Canyon ~~ Canyon Programming -- Basic S 10.40 S 10.40 S 9.77 $ 9.74 -' Expanded Basic 11.05 11.05 11.17 11.14 Premiums -- _ HBO/Cinemax/ Showtime a la carte 11.25 11.25 12.20 12.20 Disney a la carte 11.2 5 11.2 5 _ 11.2 5 11.2 5 Encore a la carte 1.50 1.50 1.75 1.75 _ Equipment -- Remote 3.50 3.50 .11 .11 Standard Converter --- --- ,87 ,87 _ Addressable Converter --- --- 1.50 1.50 Service Work -- _ New Installation S40.00 $45.90 Reconnect 30.00 22.95 Additional Outlets 3 0.00 2 2.9 5 _ Additional Outlets w/ Installation FREE 7.65 Upgrade 24.95 15.30 Technical Calls FREE/24.95 FREE/30.60 hr. Hourly Service Charge N/A 30.60 The above rates comply with the new FCC benchmark formula. Franchise authority certification is optional. + FCC Customer Service Standards -Effective July 1, 1993 FCC -- Open "normal" business hours. Includes evening hours or some - weekend hours. Ctinrent TCI Performance -- 8 a.m to 6 p.m weekdays; 8 a.m. to 5 p.m. - Saturdays. FCC -- Local, toll free, or collect call access 24 hours a day, seven days a week Current TCI Performance -- Twenty-four hours per day, seven days per week FCC -- Trained representatives answer phones during "normal business hours." Current TCI Performance -- Ongoing training sessions. FCC -- Under "normal operating conditions," telephone answer time by a CSR is not to exceed 30 seconds after connection is made. Must be met _ 90% of the time; busy signal less than 3% of the time. Current TCI Performance -- Average hold time 14 seconds; calls answered _ within 30 seconds: 91%; busy signal 1% or less. FCC -- Performance within seven business days after order (if located no more than 125 feet from distribution system). Current TCI Performance -- Average install window: 4.5 days. - Service Interruptions FCC -- (Loss of picture or sound on one or more channels.) Work to - begin no later than 24 hours after problem is known. Current TCI Performance -- Service calls completed within 24 hours: - 10096. Install a_n_d Service Apx~oi_ntment,~ FCC -- Offer appointment times or a four-hour window. Ctinzent TCI Performance -- Three-hour appointment window. FCC -- Fully itemized Respond to subscriber complaints within 30 days. C~rent TCI Performance -- Historical compliance with billing. Complaints resolved in 72 hours. FCC -- Written information provided at the time of installation and annually written information must be provided on: • Products and service _ • Prices and programming options • Install and service maintenance policies • Instructions on how to use service _ • Billing and complaint procedures Ct~tent TCI Performance -- Installation kits and annual billing insert. FCC -- Must give 30 days advance written notice of changes in rate, programming services, channel positions. C~rent TCI Performance -- Letters to subscribers and billing inserts when applicable. • Employee Training • All TCI employees complete a customer service course called "The Customer First" as a starting point for professional development. _ • Technical personnel participate in ongoing testing and certification through the Society of Cable Television Engineers and through the _ National Cable Television Institute. + Dedication to Customer Service • • • + Fran • • TCI continues to increase its staff to meet customer service levels and growth demands. We have expanded our service hours Monday through Saturday. A Regional Service Center was developed to personalize customer service 24 hours a day, 365 days a year. ~hise Authority Billing Notations Per FCC Rules and Regulations, Section 79.952, Subpart N. Refer customer inquiries to TCI. _ - Will notify on disposition, if requested. • Customer complaint procedures. - Customer Contact Personnel - Management Personnel • Objective is to solve upon contact; however, if research needed, then solution or position within 72 hours. + Channel Realignment "' TCI's channel line-up will change as a result of a "must-carry" request from KHDT Channel 9, and to adjust the Basic and Expanded service _ packages. + Broadcast Retransmission Consent • Section 325 of 1992 Cable Act provides that no cable television system or other multi-channel video provider will be allowed to retransmit the signal of a broadcast station unless: (1) the express authority of the origination station has been obtained; or (2) the originating station has asserted its "must-carry" rights as _ set forth in the 1992 Cable Act. • Negotiations are progressing and expect all to grant _ retransmission consent. • Channel 9 ICHDT has selected must-carry. + Customer Notifications (see examples included in this packet) • Customer letters, sample included - • Channel card with service rates. • News release. • Newspaper advertisement. • Cross-channel announcements. • Fiber Optics Conversion • Measuring system ("walk out") begins fall of 1993. • System covers over 1,500 miles, passing more than 113,000 homes in Ada and Canyon Counties. _ • Over S40 million, two-year project. • Will provide over 200 new jobs. • Minimum disturbance during construction, using "trenchless" installation techniques. • TCI will keep customers notified of progress. "' - Neighborhood association meetings - Media announcements • Cable subscribers will benefit: _ - More reliable service - Better picture quality - Capacity for future products TCI CABLEVISION MANAGII~~TT Jeff Cooper Steve Hawley Dave Rehder Barb Robertson Wayne Watson Bruce Wetter All TCI Cablevision mana; Channel 10 Manager Operations Manager Plant Manager Human Resource Coordinator General Manager Ad Sales Manager Bement can be reached at 377-2491. SAMPLES TCI Cablevision of sM,' Treasure Valley FOR Il~Il~~D]ATE RELEASE: Contact: Wayne H. Watson (208) 377-2491 Change is Coming to Your Cable Service Effective September 1, 1993 (Boise, Idaho, August 20, 1993) -- TCI Cablevision of Treasure Valley announced today that it will be making modifications to its cable service and rates effective September 1 to comply with recently released government regulations. _ "As a result of the federal rate formula, some portions of a customer's bill may decrease while others may increase," said Wayne H. Watson, TCI's general manager. "In most communities the greatest savings will be experienced by _ those customers with current equipment fees (converter box and/or remote)," said Watson. _ However, as each bill is unique due to the combination of services and equipment, it is not possible to give specifics that will fit each customer's situation. Under the 1992 Cable Act, cable system rates and services are expected to reach certain 'benchmarks" by September 1*. To meet those benchmarks, TCI - Cablevision will make the following rate and channel changes: County Basic Service Expanded Basic CURRENT MONTHLY CHARGE RATES Ada County Canyon $10.40 $ 9.77 11.05 11.17 $ 9.74 11.14 Boise Office 8400 Westpark St. Boise, ID 83704 (208) 377-2491 Fax (208) 375-7500 An Equal Opportunity Employer CHANNEL REAI~GNMENT: WGN 3 - IHiDT 9 Lifetime 16 QVC 17 Weather Channel 18 CNBC/VISN 19 TNT 23 - USA 25 AMC 31 CNN 32 - Prevue Guide 34 _ These service and rate changes aze the latest in a series of moves cable television companies aze making to comply with the 1992 Cable Act passed by Congress last October. The Federal Communications Commission (FCC) is _ responsible for developing the regulations necessary to enact the law. In addition, there maybe some further local broadcast programming changes _ necessary. Under the cable act, local broadcasters may deny cable television companies permission to carry their programming on the cable system. TCI will continue to carry local broadcast stations as long as they allow them to do so. The rates established by the FCC Basic and Expanded Basic service in Idaho are, - in most cases, very consistent with new federal standazds. '7n 1994, we will begin converting our cable system to fiber optics. This will - provide more reliable, better quality cable service, as well as open the door to exciting new information and technological advances in the future," Watson added. *Mid-month billing will be retroactive to September 1. - ### T sr. TCI Cablevision of Idaho, Inc. We're taking television info tomorro-v. SAMPLE LETTER TO CUSTOMERS CHANGE IS COMING TO YOUR CABLE SERVICE COMPLIANCE TO FEDERAL REGULATION Tlie Federal Cable Act of 1992 is a complex issue. Effective September 1, 1993, TCI will adjust your Basic and Expanded programming rates, along with equipment fees, to comply - with the federal law. In most cases, rates in Idaho were consistent with new federal standards. - RATE C);-iANGE~ As a result of the federal rate formula, some portions of your bill will decrease while outer '- portions will increase. In most communities the greatest savings will be experienced by those customers who currently pay equipment fees (converter box and/or remote). As each bill is unique due to the combination of services and equipment, please refer to the enclosed - channel/rate card to determine your new rates. The federal law also requires that all fees and equipment charges, including franchise fees, be identified as separate line items on billing statements. Depending on the date bills are sent, some customers may see these - changes on their September bill; others will see changes on their October bill retroactive to September 1, 1993: Some premium channel rates will increase. Again, please refer to the enclosed rate card. CIiANNEL CIiANGE It is also necessary for us to move some channels in order to adjust the Basic aid Expanded programming packages. For your convenience, a new channel line-up yard is enclosed. _ There may be some further local broadcast programming changes necessary in the future. According to the federal law, local broadcast TV stations must grant their "retransmission consent" in order for us to continue to carry them on our cable system. Many broadcasters _ Dave demanded payment in return for this "retransmission consent;' but we refuse to allow you to pay extra for TV others may receive for free. We want to carry these broadcast TV stations as long as we are permitted to do so, and without any additional cost to you -our _ customer. Tliat is why we will continue to negotiate with these stations down to the last minute. If we don't receive the broadcast TV stations' consent before October 6, federal law will require us to discontinue carriage of those stations. TCI'S COMMI11yIENT - As we strive to comply with this new federal law, we'll do our best to keep yvu informed. TCI is committed to providing the best in programming and service. - 7'liank you for clioosit~g TCI. We appreciate your business. _ PRODUCTS 8r SERVICES PRICE LIST ITEM MONri1lY CHARGE DAIS ADA CO. CANYON CO EFFECTIVE ... Bosic Service S 9.77 Expanded Basic 1 1 17 S 9.74 9/93 . 1 1.14 9/93 Premium Channels -- Ii80 - 12.20 Slrowlime 12 20 12.20 12 20 1 I /93 . Disney Channel 11.25 Cinemax . 11.25 11 /93 11/93 12.20 Encore 1.75 17.20 1.75 I 1 /93 11/93 ,~,~ Premium Pock°°es )HBO, Cinemax, S~iowlime Disne ) , y Any 2 Premium Channels 18.85 Any 3 Premium Cha l 18.85 9/93 nne s 26.85 ,~, All 4 Premium Channels 29 95 26.85 9/93 . 4 Premium Channels + Encore 30.95 29.95 30.95 9/93 9/93 Add Encore - to another Premium Channel I.00 1.00 9/93 O~stional Services Digilo Music Express 9.95 9.95 9/93 the Coble Guide 1.25 „~ (or 69.95 annual subscri ti 1.25 9/93 p on) Standard Converter .87 Addressable Conve t .87 9/93 r er I.50 Remote Control 1 I I.50 9/93 . o -Per-View .11 9/93 Cost Per Movie: 63.99 (Special Evenh Priced Separately) INSTAU.ATION 8 REPAIR FEES ... EHecKve September 1, 1993 Unwired Home Insfallotion Iwir6in 125' of e.isring cook pbnrl ........ Reston/Reconnect Home Insfalloli 45.90 on,,,,,,,,,,,,,,, Additional Outlets al Time of Initial Insfallolio ,,• 2 n ...................... Additional Connection Requiring Seporole Insfallolion........... Relocate Outlet .. 7.65 22.95 .........:....... ............ Counter - Clwnge of Service ..................... 22.95 ......................... Upgrade/Downgrade ~ptionol Services (non•oddressoblel... Connect VCR of lime of Initial Installation 15.30 ................... Connect VCR Requiring Separate Inslollalion .............. ~~•~~~~~~ Install DMX of lime of Initial (nshrllafion 7.65 1 ........... InsMll DMX Requiring Separole Insfallolion ...... Purchase A/B Switch ..................... .................. ... 7.65 15.30 ................. Install A/B Switch of Time of Initial Installati ~~~~•~~~ ~~ 5.00 on.,..,..,,,,, Install A/B Swikh Requiring Separate Installation .................. Administrative Fee For )ale P 15.30 ayment .............. Rehrrred-Check Fee .,..,..... ............. hourly Service Ch .................... .............. 5.00 15 00 arge ...................... ............. Canmer 'nl and ...... .................... . 30.60 SAMPLE CHANNEL LINE-UP CARD Effective September 1993 13 14 15 >:1 >1 <~ 2 2 23 Discover HBO ESPN TNT 24 Prime Sports 25 USA 26 Family Channel 27 Nickelodeon 28 MTV 29 VH-1 30 TNN 31 AMC 32 CNN 33 CNN Deadline News 34 Prevue Guide 35 A8rE 36 Univisiorl 37 REQUEST I 38 REQUEST II Basic Service 5h'aded A~~ Expanded Basfc -White Areo Premium 8r Pay-Per-View Services - BOXES "' abrne will be charged atnlherhourly clfxsrge and other services not listed 375-8288 454-3061 Pr'ces do not in44ludo harxhise Fees « tuxes except where denofgd. Boise Nampo/Caldwell All priceyy ore suhiect f4 change. Expanded Basic and Premium channels require the purchase of Bosic Service. ... 7lrese prices ar Formulated by using the Ilourly Service Char a (tISC) os ~ TC I Ca b l ev i s i o n o f pre}cribed by f~e Federal Commur rcafion Comr~issior~ Formu~cis muhiplied y the rneroge time For each installation aclivify bused upon hrsforic data. Treasure Va I ley SAMPLE _ NEWSPAPER AD ..~ ..a i ... """""--'-- "-"' ' __'1 ' f (_. I ~ (:~Il~lcvisirlll c/f / ...I~"~~ \ ' lieaslrrc V~Illcy ; i 11crc f~kinR fclcrisinn into /nrrrnrrrnt; , , , , , , r i 1 ~ , , ~ , ~ , ~ (Elredive Sapl„mber 1 i ~ . 19;1) ~ , ~ ~ , , ~ r HATE CHANCES AS 1 rrC11I1 of (Ile redCl.ll IIIC rO11tlULl, somC Ixtrllons or your bill may decrease while others may Inarasr. In most conununlUcs the greatest ctvhrgs will be experienced by those customers wit equipment tees (convener box and/or rcmole( As each hill Is unique due to the comhlnatlon of s viers and equipment, It k not posdhle to glue speclllcs That will rlt rash arsbmrr's sllnallon. 1?epenllrrg rnr the date your hills are sent, some custrnners may see these changes on (heir Septemb 6111; othrts will sec changes on Ihelr October bill backdated to September 1, 1993. CHANNEL CHANGES /1t lhr $arnC (hne, we are ntoving some channels around to adjust the Aaslc and Expanded pr grannning packages. We have t-Ird to keep these changes to a minimum. For your convenience, w have cnclnsed a channel Ilcthrg and rate Carr) rot clnngrs efrecllve September 1, 1993. /1ddltlonally, tlrere may be srnnc further local hroadcttt prograrnming changes necescary, Linder the rtblr ncr, aprremnds whh local hroadcaslers need to he rr.tched In order for us to cauy their programming, TCI will continue to carry local broadcast stations as long as they allow us to do so. TCI'S COMMITMENT Please rrmenrber we are complying whh complex federal regulations and will do our hest to keep you lofrnnud as clnngrs occur. At 1CI we are commhtcrl In provlrling you with Ihr hest pro_ granunlrrp, and service valor pnsslblc. Our foremost concern Is for you, our arslomrr. 'I hank you for being our customer. We applEdate your business. r~ i ~ COMPl1ANCE TO iEDEHAI REGUlAT10N , rr rrdcral Cable /pct of 1992 Is a cnnq,lrx Iscuc. Ellcctlvc Srptrmhrr 1, 199:5, 1CI will hr ~ a~llusllnp. your Raslc and fxpandar propramming tarts, along with equipment lets, to rnmp1Y whh the ~ r frrlrral Ltw, ~ , ~ , ~ , ~ , ~ r ~ , , ~ r ~ ~ ~ , ~ r ~ , ~ , ~ , ~ rise call us !/ you have any quesllons. X75-8288 X54-3061 1 Boise Nanl~~a/Calclwell 1~C1 C~~blevision of lre~sul~e Valle 1 ~ ~ N'c re !akin fclc-'isi y R rnr infra hmrorrole ' , ' , , , , , , ~ r ~ , ~ , h ' ~ ' , cr- ~ , , ~ , ~ rc ~ ; r ~ , , , , , , , o- ~ , e ~ ' r ~ , , , r , c , c , ~ ~ , , , , , r , r r , , , r , , , , , r r , , , , , , , , , , , , , _; CUTOFF DATES IN THE 1992 ACT July 19, 1985 Each must-carry station may choose to be placed on -' the channel on which it was carried on this date. March 29, 1990 No must-carry education station carried on this date may be dropped without its consent. _ Carriage of a must-carry educational station on any channel other than the channel on which it was carried on this date is considered "repositioning." FCC rules in place on this date define "reference point," "Grade B Service Contour," and non-commercial _ status of educational stations. No program service carried on this date needs to be dropped by a system with 12 or fewer channels in order to carry its one mandatory ETV signal A 13-36 channel system which increases its usable activated channel capacity to more than 36 channels on or after this date shall carry the signal of each qualified local non-commercial educational station requesting carriage (subject to other provisions). June 1, 1990 Exclusive programming contracts entered into on or before this date are grandfathered for wired areas. FCC's EEO policies in effect on this day are used to redefine job categories. June 26, 1990 Systems may continue to accept payments from commercial must-carried under agreements entered into prior to this date. June 30, 1990 The largest 160 MSAs used in determining LPTV carriage rights are established by OMB's determination as of this date. July 1, 1990 A franchising authority may continue to regulate basic rates during the term of a rate regulation agreement - made before this date where there was not effective competition under FCC rules in effect on this date. No programming provided over a cable system on this date may qualify as minority or educational - programming which satisfies leased access obligations. January 1, 1991 FCC rules in effect on this date define "city of license reference point" for commercial stations. The syndex, network non-duplication, and sports _ blackout rules in effect on this date define the extent to which cherry-picking is allowed. - May 1, 1991 A broadcast ,station's ADI is determined under rules in effect on this date. Superstations retransmitted to HSDs or cable headends on this date are exempt from retransmission consent. January 1, 1992 Each commercial must-carry station may choose to be placed on the channel on which it was carried on this - date. September 1, 1992 The FCC's broadcast and EEO regulations and forms in - effect on this date may not be revised except as indicated in the 1992 Act. TIlVIII~TE FOR M'LEMENTATION, RULEMAI~Il~TGS & REPORTS October 5, 1992 Date of Enactment November S, 1992 FCC commenced rulemakings on: _ 1. Must-Carry/Retransmission Consent 2. Home Wiring _ 3. Indecent Programming on Public and Leased Access _ December 4, 1992 Act becomes generally effective December 10, 1992 FCC commended rulemakir~gs on: 1. Rate Regulation, Tier Buy Through, Leased Access Rates _ 2. Customer Service Standards 3. Program Access and Carriage Arrangements 4. Cable and Broadcast EEO - 5. Ownership and Anti-Trafficking February 2, 1993 FCC must adopt rules for: Home Wiring Indecent Programming on Leased Access April 3, 1993 FCC must adopt rules for. Rate Regulations Must-Carry/Retransmission Consent (including update of TV list) Leased Access Rates Program Access Consumer Protection/Service _ Indecent Programmming on Public Access _ July 1, 1993 Sports Migration Report Due (final report due one year later) _ July 2, 1993 FCC must adopt rules for. Home Shopping Stations _ Cable EEO September 1, 1993 Effective date for FCC benchmark rates _ October 1, 1993 FCC deadline for cable operators to meet benchmark rates and rate regulations _ October 5, 1993 FCC must adopt rules for: Annual Financial Disclosure Horizontal Integration Vertical Integration Cable/Production Integration Technical Standards Carriage Agreements (affiliate contracts) -' Retransmission consent goes into effect FCC must report to Congress on Interface/Equipment Compatibility (rules within 180 days thereafter) _ April 5, 1994 FCC must report to Congress on Status of Competition in the Delivery of Video Programming _ October 5, 1995 FCC must report to Congress on Status of Broadcast EEO _ *Some items and/or dates may have been revised by the FCC. ... 36 Munlt:hannel Newt Auputt 9,1993 _~------------------------------------------------------I - FCC Rate Rules: Questions and Answers I CC Form 393 is to be used to cal- [ ~ culate permissible rates for regu- lated cable television service of- '^ I ferings. This form was initially re- I leased as an attachment to the Report I and Order in Docket 92-266, FCC 93- used for service and maintenance of [ equipment. The instructions do not I contain any procedures For adjust- ing these expenses for known and certain changes Ural may be only I artiall reflected i th t 1 1177, released May 3, 1993. On May 119 1993 i d f l d Instructions indicates that system d " No other items should be included. prior to the time the operator tour- p y n e ac ua re- salts over the last 12 months. For I , , a rev se orm was re ease . I On June I I, 1993, a further revised ata may be used i< all relevant lac- tors' are identical and the local flan- These were the categories the Ctxnmis- sion included in the cable rate survey plettx the form: e.g., the fiscal year ending Dec. 31, 1992, or is it the example, if a wage agreement was I signed in the final month of the 12 I I version was printed in the Federal I Register (58 Fed. Reg. 32674) incon- chasing authority approves. three relevant factors are listed: program which was used to develop the bench- marks against which current rates will most recently completed fiscal year prior to Sept. 30,1992, e.g., the fis- month period, the instructions do [ not indicate whether actual labor I ( nection with the Office of Manage- service and equipment rates, than- be compared. Accordingly, in order to cal year ending Dec. 31, 1991? costs shouts be increased to account I I menl and Budget Review under the net Ilne-ups, and franchise fees. Is ensure a propercomparison, the same A: The "preceding fiscal year" for these costs as it they had been I Paperwork Reduction Act. The FCC staff has solicited technical questions I this list exhaustive? It not, what are the other relevant factors? categories must be used in Line 104. We anticipate that in most cases, the means the most recently completed fiscal year prior to the time the oper- I incurred over all 12 months. How should such charges be treated? I with regard to filling out Form 393. The following answers respond to the A: The three factors listed must all be identical before system data maybe operator will not have additional cat- egories of equipment beyond those ator completes the form (in the exam- pie given, Dec. 31 1992). A: Generally, we require that annu- I alized fi ures be used but if d f d I questions we received. To the extent ( related issues may have beer( raised in used. Moreover, the local franchising authority for basic rates (or the FCC listed in the Instructions to Line 104. However, if the operator does in fact , 13. Q: Worksheet 3. Systems with g , e ine changes have occurred over the past I 12 months the operator may use a I petitions for reconsideration, these ao- I savers provide interim guidance to ca- for either basic a cable programming services rates) has the discretion to de- provide equipment that is trot included in the Line 104 instmetions, those ad- above benchmark rates must re- move their equipment costs from a , partial year average that reBects those actual changes. Such calculations I ~ hie operators, Intel govemrnents and ( cable subscribers until rcconsiderstion (ermine whether there src other role- vam (actors that would preclude use of dilional items msy be included on Schedule C to the Equipment Work- rule based on Sept. 30, 1992 roles, while systems whose rates are at or should be accompanied by an ex- I planatory statement however I is completed. ~ system data. If you wish to use system data for certain franchise areas, you sheet. This is because the Schedule C cntegories are to be used In calculate below the benchmark will remove their equlpmenl costs from their , , I I 17. Q: Schedule B. Suppose nn I Form 393 Perl 1: Cover Sheet should submit such data on FCC Form the costs of equipment actually pro- current rates. What is the impact of operator leases an item of capital I ( 1. Q: Form 393, Cover Sheet. I 393 and attach an explanation. The lo- cal franchising authority (or, where ap- vided to subscribers, even if revenues for that equipment were not included requiring the removal of equlpmenl costs from subscriber rates that equipment, such as s truck from a I third party. is any portion (e.g in- I How should the franchise tee cotta- I lotions [or both program service propriate, the Commission) will then be able to explain why the use of s s- in Worksheet 1, Line 104. may reflect slightly different lime i d i ., serest, amortization) of the lease I 1 and equipment rates be handled? y rem data is not appropriate. 9. Q: Instructions Por Worksheet per o s ( .e., Initial date of regale- lion or Sept. 30, 1992)? payment allowed on Schedule B? I A: The cost of leasing equipment I I A: The Cover Sheet to Form 393 in- I stmcts cable operators to allocate the i f 4. Q: What date should be used 1, Line 104. When can a repreaen- tative month be used end under A: Because equipment costs are es- timated using an average month tom- may be included in the rates for equip- I men( installation and maintenance. I I appropr ate ranchise tees to each cep- I orate tier and equipmatt rate. Although for determining the number ofsub- scribers on Worksheet 1, I.Ine 103? what dreumstances with respell to calculating monthly equipment rev- paced from annualized data, those costs do not track a articular date Equipment used under a capital or ti- I i l h I franchise fees may be itemized by ca- I ble operators, Commission rules re- A: The operator should use the number of subscribers as of the date enue? A: If there would be no material p . Thus, it is anticipated that there will be no practical difference in re lt b nanc ng ease s ould be included at I book value net of accumulated amor- I i i S h I quire that they be included in the pro- that the form is being completed. difference in result from using arep- su e- cause operators removing equipment t zat on on c edules A and C. The rental expense for equipment used un- I gram service or equipment rate. The I franchise fee isWction thus was in- ( eluded to aid both o erators and l l S. Q: How should bulk acrnunts b t t d f resentative month rather than the past fiscal year, and if the local franchise costs from rates bated upon current or Sep[. 30, 1992 cable programming der operating leases should be includ- I ell on Schedule B. I p oca I franchising authorities in determining e rea e or purposes of rounting fhe ntrmber otsubscribers oe Work- authority (or, where applicable, the FCC) finds it acceptable, the operator rates. If there is something unusual about the "representative month;' op- 18. Q: Part HI 1[an o erator has I what the total subscriber bill will be. I At the same time, however, fran- hi f sheet 1, Llne 103? A: The number of subscribers may use a representative month. The operator should attach a brief state- erstors should take that into acernrnt in their calculations and submit a justi- . p capitalized maintenance expense as- I satiated with installation costs can I I c x ees were rrot included when cal- I culating benchmark rates and are not should be attributed to bulk acwunts as if they paid the regular subscriber men( to Form 393 explaining why it is appropriate in that system's case fication. , the depreciated expense and return I I relevant when determining a system's I maximum permissible rate. Rather, rate. Thus, for example, if the tier of service costs E10 and a 200-unit apart- . 10. A: Worksheet 1, Llne 123. Form 393 Part II: Equipment acrd Insfalladon Char es Worksheet associated with that past capitalized I expense be (ndudcd in equipment I t ? those fees are separated out of the men( building is billed 5500, then the The information given in Line 123 g cos s A: No. Equipment and installation I computations and are only added back rn after the reasonable rates for pro- I i operator would add 50 to the number of regulaz subscribers irrcluded in Line is data not yet available in the Sur- vey of Current Business. The most 14. Q: Schedules A and C, Col- umn G. Should the federal tax ex- rates should only reflect directly assn- I elated costs incurred by the operator I gram serv ces and equipment have I been calculated. There apparently is a !03 (5500/SIO = 50 subxribtxa). recent (i.e., March) Snrvey o[ Cur- t B i pence be calculated by applying the in providing them to their current cus- I variety of methods for calculating f hi 6. Q: Should revenues from `gate " ren us ness gives 121.9 as the 3rd Quarter 1992 GNP-PI and 122.9 as federal tax rate to a pre-tax or after- tax return on investment? comers. [ I I ranc se fees and a potentially wide I range of service and equipment rates tees be included on Worksheet 1, Line 1047 the 4th Quarter. What numbers should be used? How arc future ad- A: The federal tax expense should be calculated based u on a re-I nx re- The following technical correc- [ li h l b I that any one operator may offer, both I of which make it difficult to allocate A: No. Only the revenue sources listed in the Instrucdons for Line 104 justments In the GNP-PI numbers going to be included? p p . turn on investment. Our instmctions f l l ons ave a so een made and are I reflected in the version of the farm I franchise fees as the Cover Sheet rc- should be included. A: The GNP-PI numbers used by or ca cu ating taxes have thus been revised to allow for the inclusion of printed in the Federal Register. ~ I quires. In view of the confusion that lbe franchise fee iswction sheet has I 7. Q: Worksheet 1, Litre 104. Can the Commission were obtained from a May 6, 1993 Commerce Department the "grossed-up" tax amount in Col- umn G. The rate applied to amounts in 1. Instructions fa Worksheet 2. The I second sentence now reads a f ll I caused and the fact that such fees arc I not part of the permissible rate cotta- equipment revenue allonted on the system level be a6ocated on the Iran- press release. This press released con- rains the most recent revi i t h Column Fshould be agrossed-up rate hi h s o ows: '7f your September 30, 1991 rate was I I lotions, the inswaions has been delet- I ell from the Cover Sheet and o erators chase level based on the subscriber rati ( i il t P I I s ons o t e CNP-PI. These numbers are different w c would be Tax Rate/(I -Tax Rate). For a Federal tax rate of .34, the also above the benchmark, your max- I imam permitted rate will be your p I rKed not allocate franchise fees as part os s m ar o art I , Slep G)? A. Operators may allocate equip- from the preliminary estimates pub- lashed in the most recent Survey of grossed-up rate would be .515 (cotta- laced as 34/[ I- 34j) September 30, 1992 rate, reduced 10 I h I of Form 393. These changes will be I reBected in tbe Cover Sheet to the of- men( revenues to the franchises within a system based on relative numbers of Current Business, released in March of this yeaz. The most recent (as of the . . , 15 Q: Schedules A and C C l percent or to t e benchmark, whicbev- [ er reduction is less." (Additional word I i i i li I facial version of Form 393 that will be I distributed by the Commission for use subscribers if this allocation approach is acceptable to the local franchising completion date of the form) GNP-PI numbers available to the public should . o , - umn D. If an operator currently a s n t d ti i s n ta cs J I 2. Inswctions preceding Workxbeet I I by cable operators. authorities involved. An operator also be used for these calculations. Thus, p y o axes an an c pates no fu- lure tax liability, and would pay no 5 (the instructions on the worksheet rt- I self). The sentences should have been I Form 393 Part II: Baste Tier & bl ( C P may use other reasonable allocation methods, subject to approve by the lo- if preliminary estimates are the most recent figures available, they should taxes even without accelerated tax depreciation, does the operator en- amended to read as follows: "Work- I sheet 5 should be completed if Line I a e rogramming Service I Charges cal franchising auttrority or, where rel- avant the Commi i be used, ((the Commerce Depattrnent ter zero in Column D? 121 E is different than Line 220E. If I I , ss on. then publicly announces revised A: The provision for taxes is de- Line 121E is the same as Line 220E I 2. Q: Instructions for Worksheet 1 Li 101 H 8. Q: Instructions for Worksheet numbers (through a press release or otherwise), the revised numbers signed to provide a fair after-ta~c return on investment for the business entity. , go to Line 600 and enter Line 402." I 3. Worksheet 5 The words "or [ , 1 ne . ow are new tiers of ( service that are introduced during I, Line 104. The irtsfnrctiorts list sev- en categories of equipment and in- should be used. if the entity has no income tax obtiga- i . Worksheet 3 (Line 304)" have been I I the freeze period to be treated? A: All tiers of servi ff d t h stallation services. Is this list meant b h 11. Q: On Worksheet 1, Line 125, l on, as is the case for sole proprietor- ships, for partnerships, and for Sub- deleted from Line 5(m. The instroc- I lions for Worksheet 5, Line 500 have ce o ere a t e I time the form is completed should be I i to e ex austive? If there are other items of customer equipment listed does the reference to most recent quarter mean a fiscal or calendar chapter S capaations, that the amount would be zero in Column D. For tor- I also been amended accordingly. I 4 Ste A Line 2 on th P rt III I ncluded, regardless of when they I were introduced. Thus, if a new tier of I re l t d i i on Part III, Schedule C, should they be included? Alternatively, if tlrls 9st quarter? A: A calendar quarter should be porations with income tax obligations, the arttount irtclucled in Column D is to . p , e a n- sWCtion sheet. The first sentence has ( been amended to mad: "Enter the e I gu a e serv ce was ntroduced dur- I ing the freeze period, it should be in- is exhaustive, are these the only item( that should be listed on Schell- used for these purposes. be bated on the "grossed-up" statutory p r- centage of the casts and expenses entered ( I eluded on Worksheet I . uk C? 12 Q: Instrnctiorts for Worksheet rates, not the tax rate actually paid. in Lice 1 tltat is used For the maintenance I I I 3. Q: Instructions for Worksheet A: The categories of equipment and installation services described in the In- 2, Line 204. What is meant by the "preceding fiscal year"7 Is this the 16. Q: Schedule Brequires alist- ing of annual operating ex enses of customer equipment and customer in- I stallations used to receive the basic ser- [ vi ti h t " 11, Llne 101. The footnote to the sWctions to Line !04 are exhaustive. most recently rnmpleted Bscal year p , excluding depreciation, that are ce er ar rou nndri-der equipmeru. I (Additional words are in italics ) L-------------------------- ------------- ------------- . - ~