*Pages 1--17 from Microsoft Word - 9015.doc* Federal Communications Commission DA 01- 1219 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of Implementation of Section 3 of the Cable Television Consumer Protection and Competition Act of 1992 Statistical Report on Average Rates for Basic Service, Cable Programming Services and Equipment ) ) ) ) ) ) ) ) ) MM Docket No. 92- 266 ORDER Adopted: May 15, 2001 Released: May 17, 2001 Responses Due: July 21, 2001 By the Chief, Cable Services Bureau: 1. On October 5, 1992, Congress enacted the Cable Television Consumer Protection and Competition Act of 1992 (" 1992 Cable Act"). 1 Section 623( k) of the Communications Act, as amended, requires the Commission to publish annually statistical reports on the average rates for basic cable service, cable programming service, and equipment for systems that are subject to effective competition and for systems not subject to effective competition. 2 2. In Section 623( k) of the Communications Act, Congress directed the Commission to prepare annual statistical reports on average prices "for basic cable service and other programming, and for converter boxes, remote control units, and other equipment" of systems subject to competition and systems not subject to competition. Under this provision, the report must compare rates of competitive systems with rates of noncompetitive systems. 3 This information will be used to monitor cable prices and determine 1 Cable Television Consumer Protection and Competition Act of 1992, Pub. L. No. 102- 385, 106 Stat. 1460 (1992), 47 U. S. C. § 534 (1992) (" 1992 Cable Act"). The 1992 Cable Act amends Title 6 of the Communications Act of 1934, as amended, 47 U. S. C. § 521 et seq. (" Communications Act"). 2 Communications Act, § 623( k), 47 U. S. C. § 543( k). 3 Section 623( k) provides: "The Commission shall annually publish statistical reports on the average rates for basic cable service and other cable programming, and for converter boxes, remote control units, and other equipment of -- (1) cable systems that the Commission has found are subject to effective competition under subsection (a)( 2) [of Section 623 of the Communications Act], compared with (2) cable systems that the Commission has found are not subject to such effective competition. 1 Federal Communications Commission DA 01- 1219 2 whether the rates charged for basic and cable programming services by cable systems not subject to effective competition are reasonable compared to the rates charged by systems subject to effective competition. 4 3. To implement the requirements of Section 623( k), the Commission is directing certain cable operators to respond to a price survey questionnaire designed to solicit information concerning rates for basic and cable programming services, and equipment used to receive such services. A copy of this questionnaire is attached to this Order as an Appendix. 4. We are mindful of the need to limit administrative burdens associated with this price survey. We anticipate that the burdens faced by responding cable operators should be quite limited as the information requested is of the type that should be readily available to operators without additional calculation. Suggestions for reducing the burden may be sent to the Commission. 5 5. The survey asks questions about an operator's monthly charge for the basic service tier (BST) and cable programming services tiers (CPSTs), the monthly charge for equipment lease, and the charge for service installation. In addition to monthly charges, the survey asks for the number of subscribers taking each tier of service, the type of equipment leased, and information on the channels in each tier. The survey also seeks information concerning cable system capacity and revenue. The survey requires cable operators to provide each of these pieces of information as of July 1, 2001 and July l, 2000 in most questions. A limited amount of information is required as of July 1, 1999. The survey also seeks information that would explain the causes of any changes in monthly charges during the 12- month periods ending July 1, 2001 and July 1, 2000. 6. This survey form will be sent to cable operators to obtain the necessary information on a franchise basis. To effectuate comparisons between competitive and noncompetitive franchise areas, data will be collected from each group. A random sample of 266 cable franchises will be selected from the group of franchises where the Commission has made a finding of effective competition. A random sample of 476 cable franchises will be selected from the group of franchises not subject to effective competition. 7. The cable operators selected in our sampling must complete and return the questionnaire no later than July 21, 2001, in accordance with the instructions in the Appendix to this Order. A questionnaire is required for each franchise that incorporates a specific community selected for the survey. If more than one community is selected from any cable system, then that cable operator should complete a separate questionnaire for each of the Community Unit Identifications (CUIDs). All data submitted in response to this survey will be considered part of the public record and will be provided upon request without identifying information. 8. The survey questionnaire may be downloaded from the Commission's Internet site, in accordance with the instructions in the Appendix to the Order. A diskette, which contains the survey questionnaire and instructions, may also be purchased from ITS (International Transcription Service) at (202) 857- 3800. 4 Communications Act, §§ 623( b)( 1) and 623( c)( 2)( B). 47 U. S. C. §§ 543( b)( 1) and 543( c)( 2)( B). 5 For further information, see the notice contained in the Appendix to this Order, regarding the Privacy Act and Paperwork Reduction Act. 2 Federal Communications Commission DA 01- 1219 3 9. Whether or not cable operators obtain the survey either via Internet or from ITS, we strongly encourage operators to file on diskette, to make the completion and processing of the survey questionnaires more efficient. Operators should mail to the Commission a diskette and one paper copy for each selected CUID. For those operators who cannot file on diskette, a paper filing will be accepted. If filing on paper, an original and one copy of the completed questionnaire must be mailed. Regardless of the method selected for filing, mail the completed diskettes and paper copies to the Cable Services Bureau, Attention: Price Survey, Federal Communications Commission, Washington, DC 20554. Responses must be received no later than July 21, 2001. 10. Accordingly, IT IS ORDERED, pursuant to Section 3 of the 1992 Cable Act (Section 623( k) of the Communications Act of 1934, 47 U. S. C. Section 543( k), and Section 4( i) of the Communications Act of 1934, as amended, 47 U. S. C. Section 154( i)), that cable systems subject to the price survey requirements described herein shall complete and return the questionnaire set forth in the attached Appendix no later than July 21, 2001. FEDERAL COMMUNICATIONS COMMISSION Deborah A. Lathen Chief, Cable Services Bureau 3 Federal Communications Commission DA 01- 1219 4 Appendix 2001 Cable Price Survey FCC NOTICE TO INDIVIDUALS REQUIRED BY THE PRIVACY ACT AND THE PAPERWORK REDUCTION ACT The solicitation of information in this form is authorized by Section 623( K) of the Communications Act, as amended. The Commission will use the information provided in this form to compare prices charged for basic cable service, cable programming services, and equipment by cable operators that are subject to effective competition with those not subject to effective competition. This form has been approved by the Office of Management and Budget, under OMB control number 3060- 0647 (expires 04/ 30/ 2003). Public reporting burden for this information is estimated to average 8 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and entering the data needed, and completing and reviewing the questionnaire. Suggestions for reducing the burden may be included on the note page contained in the questionnaire. Alternatively, send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden, to the Federal Communications Commission, Records Management Division, Washington, DC, 20554. (Do not send completed survey questionnaires to this address). The above notice is required by the Privacy Act of 1974, P. L. 93- 579, 12/ 31/ 75, 5 U. S. C. 522a( e)( 3) and the Paperwork Reduction Act of 1995, 104- 13, 05/ 22/ 95, 47 U. S. C. 3507. 4 Federal Communications Commission DA 01- 1219 5 INSTRUCTIONS FOR FCC ANNUAL CABLE INDUSTRY PRICE SURVEY General Information: Complete the attached questionnaire to the best of your ability. Please read these instructions before completing the survey form. In addition, refer to footnotes in the questionnaire for specific guidance to answering questions. This is important to ensure that all operators use the same definitions for each question. Unless otherwise instructed, limit information to the franchise that includes the indicated community, even if the system serves other franchises. A questionnaire must be completed for each community unit identification (CUID) that is listed in the attachment to the letter accompanying this questionnaire. The survey assumes that there is only one CUID for each franchise. Occasionally, this assumption is incorrect and the franchise contains more than one CUID. In this case, complete this survey for the entire franchise and not just the CUID area. Background: The Cable Television Competition and Consumer Protection Act of 1992 (the 1992 Cable Act) requires that the Commission publish an annual statistical report on average rates for basic cable service, cable programming service, and equipment. The report must compare the prices charged by cable systems subject to effective competition with those that are not subject to effective competition. This survey is intended to collect the data needed to fulfill that statutory requirement. The survey form is being sent to cable operators serving selected communities, to obtain the necessary information on a franchise basis. The survey asks questions about an operator's monthly charge for the basic service tier (BST) and cable programming services tiers (CPSTs), the monthly charge for equipment lease, and the charge for service installation. In addition, the survey asks for the number of subscribers taking each tier of service, type of equipment leased, and information on the channels in each tier. The survey also seeks information on cable system capacity and revenue. The survey requires cable operators to provide each of these pieces of information as of July 1, 2001 and July 1, 2000 in most questions. A very limited amount of information is required as of July 1, 1999. The survey also seeks information that would explain the causes of any changes in monthly charges during the 12- month periods ending July 1, 2001 and July 1, 2000. Basic Service Tier (BST) is the package of channels (or tier) that includes local television stations: broadcast stations (such as affiliates of ABC, CBS, NBC, Fox, WB, UPN and independent stations); public, educational and governmental (PEG) channels; and other local stations (such as commercial leased access). In addition, the BST sometimes includes a few satellite channels such as TBS. Cable Programming Services Tier (CPST) is any package or tier of channels other than the BST or programming offered as pay- per- program or pay- per- channel. Responding Official: This survey should be completed by a company official familiar with the services offered by the cable system and the rates charged. How to download the survey from the Commissions’ Internet web site: In order to expedite the processing of survey submissions, the Commission strongly encourages operators to download the survey questionnaire from the Commission’s Internet site. The questionnaire is available as both a Microsoft (Excel 97 & 5. 0/ 95) workbook and Lotus 1- 2- 3 (Release 9. 5) workbook. If you have earlier versions of these programs, or wish to use other compatible software, or have questions regarding the use of Excel or Lotus 1- 2- 3 software, please contact the Cable Services Bureau at (202) 418- 7200. 5 Federal Communications Commission DA 01- 1219 6 How to return the survey to the Commission: Save the completed questionnaire( s) to a 3-½ inch diskette, under the name of the CUID for which the survey is being completed. Mail your completed diskette to the Cable Services Bureau, Attention: Price Survey, Federal Communications Commission, Washington, DC 20554. Responses must be received no later than July 21, 2001. For those without access to a computer, we will accept a paper filing of the completed questionnaire including the original and one copy. Confidentiality: All data submitted in response to this survey will be considered part of the public record and will be provided upon request without identifying information. If You Need Help: If you have any questions regarding either the content of the questionnaire or the method of filing, please call the FCC's Cable Services Bureau at (202) 418- 7200, Monday through Friday, 9: 00 a. m. to 5: 30 p. m. Eastern Standard Time, for assistance. 6 Federal Communications Commission DA 01- 1219 7 Federal Communications Commission Approved by OMB 3060- 0647 Washington, DC 20554 Expiration Date 04/ 30/ 2003 2001 FCC ANNUAL CABLE PRICE SURVEY Note: Save this file under the CUID code on line A01 for which this survey is being completed. A. Operator Information Community A01 Cable community Identification (CUID)…………………… A02 Community name…………………………… A03 County……………………………………… A04 State (2- letter abbreviation)…………………………………………………. Enter "y" for yes or "n" for no: A05 Has the FCC made a finding of "effective competition" for this community?. A06 Is your basic service tier charge subject to local regulation?……………….. System A07 Cable system name………………… A08 System street address……………… A09 City, state and Zip Code…………… Enter "y" for yes or "n" for no: A10 Is this system affiliated with a multiple system operator (MSO)?…..………. A10a If yes, enter the number of MSO subscribers……….……………………… A11 Is this system part of a MSO cluster? * …………………………………….. * Two or more systems that are not only in close geographic proximity but that are integrated & share management, personnel, marketing, and/ or technical facilities. Parent Entity A12 Ultimate parent entity name………… A13 Name of survey contact person……. A14 Telephone number of contact person……………………….. Certification I certify that I have examined this report and all statements of fact therein are true, complete and correct to the best of my knowledge, information, and belief, and are made in good faith. Willful false statements made on this form are punishable by fine and/ or imprisonment (US Code Title 18, Section 1001), and/ or forfeiture (US Code, Title 47, Section 503). Signature Date Printed Name Title 7 Federal Communications Commission DA 01- 1219 8 B. Community and System Information Households & subscribers July 1, 2000 July 1, 2001 B01 Households...……...……………….. Community…………. B02 System……………… B03 Households passed…………………. Community…………. B04 System……………… B05 Cable service subscribers………….. Community…………. B06 System……………… B07 DBS subscribers (estimate) 1 ………. Community…………. B08 System……………… System capacity & activated video channels 2 July 1, 2000 July 1, 2001 B09 System capacity, in MHz (e. g., 750) ...…...……………… B10 Number of channels in the analog channel lineup 3 ………… B11 No. of 6- MHz channels devoted to digital service 4 ………… B12 Number of video channels in the digital channel lineup 5 …… Advanced services within the system July 1, 2000 July 1, 2001 B13 Do you offer digital video service? (" y" for yes or "n" for no). B14 Number of subscribers in digital video service system- wide.. B15 Do you offer Internet access? (" y" or "n")………………….. B16 Number of subscribers to internet service system- wide ..….. B17 Do you offer telephony over the cable system? (" y" or "n")… B18 Number of subscribers to telephony service system- wide .… for the 12 months ending Annual system revenues July 1, 2000 July 1, 2001 B19 Cable programming (non- premium, premium, pay- per- view).. B20 Customer equipment (set- top boxes & remote controls)…… B21 Internet……….…………………………………………….. B22 Telephony……...…………………………………………… B23 Advertising…………………………………….…………… B24 Other……………………………………………………….. B25 Total of B19- B24 * …………………………………………. * If you are working in Excel or Lotus, this total is automatically calculated. 1 If unknown, estimate the percent of community & system households subscribing to direct broadcast satellite (DBS) and multiply, respectively, by lines B01 and B02. 2 If capacity is being upgraded, report capacity available to the majority of subscribers in the system. The number of channels on line B10 & line B12 should be identified in the channel lineup in Section D. Refer to the instructions in Section D for further guidance. 3 Count non- premium, premium, & pay- per- view, but not audio/ music or digital channels. 4 e. g. , if 50 digital video channels are being transmitted over ten 6- Mhz channels, enter 10. 5 Do not count audio/ music or the analog channels already counted in B10. 8 Federal Communications Commission DA 01- 1219 9 C. Charges for Installation, Equipment, and Programming The 1992 Cable Act defines the "basic cable service" tier (BST) as the tier that includes the retransmission of local broadcast signals and the "cable programming service" tier (CPST) as any other tier that offers video programs other than video programs offered on the BST or on a per channel or per program basis. Report the prices applicable to the majority of subscribers in the community identified in A01. Information is also sought on the number of subscribers in the community for services. For a system of two or more communities, if records are not maintained for certain services at the community level, make an estimate for that community based on subscribers for that service system- wide. Installation charge (non- promotional) July 1, 2000 July 1, 2001 C01 Unwired home installation………………………………….. C02 Pre- wired home installation………………………………… C03 Reconnection of service……………………………………. Monthly charge for a set- top box and remote control July 1, 2000 July 1, 2001 C04 Charge for analog addressable set- top box & remote control. C05 If you left C4 blank, enter "NA" & explain on note page…………………… C06 Is a set- top box necessary to receive the BST? (" y" for yes or "n" for no)….. C07 No. of subscribers in the community leasing an analog addressable set- top.... Note: C07 should not exceed community subscribers reported in B05. ---- -C08 Charge for a digital set- top box & remote control………….. Basic cable service (BST) July 1, 2000 July 1, 2001 C09 Monthly charge for BST…………………………………… C10 Number of channels received on the BST 6 …….………….. C11 Number of subscribers in the community who take BST ..… Major CPST (CPST1) 7 July 1, 2000 July 1, 2001 C12 Monthly charge for CPST1 ..………………………………. C13 Number of channels received on CPST1 6 ………………… C14 No. of subscribers in the community who take CPST1…….. 6 Do not include premium, pay- per- view, and audio/ music programming. 7 CPST1 refers to the major CPST and typically meets two criteria: (1) offers the largest number of channels and (2) has the most subscribers among the CPST tiers. In some cases, however, a "mini- tier" with considerably fewer channels may have the most subscribers among CPSTs (if more than one CPST is offered). In that case, the mini- tier should not be reported CPST1. In that event, it should be reported as CPST2 (see questions C25- C27). 9 Federal Communications Commission DA 01- 1219 10 Combined charge for BST and CPST1 July 1, 1999 July 1, 2000 July 1, 2001 C15 BST + CPST1 charge 8 …………………….. Note: C15 equals C09 + C12. ----- ----- ---- -C16 12- month change in the monthly charge……..…………….. Note: C16 equals differences in amounts on line C15. ----- ---- -Best estimate of allocation of changes shown on C16 attributable to: July 1, 2000 July 1, 2001 C17 Program licenses (or copyright fees) for existing programs… C18 Licenses for programs added during the previous 12 months.. C19 Headend, distribution facility, and equipment upgrades…….. C20 General inflation, not included elsewhere…………………… C21 Other cost increases or decreases…………………………. C22 Non- cost related changes………………………………….. C23 Total of C17- C22 *……………………...…………………. Note: C23 must equal C16. ----- ---- -Combined BST and CPST1 channels July 1, 1999 July 1, 2000 July 1, 2001 C24 BST + CPST1 channels 8 ………………….. Note: C24 equals C10 + C13. ----- ----- ---- -" Mini" or other analog tier (CPST2) 9 July 1, 2000 July 1, 2001 C25 Monthly charge for CPST2 ..……………………………… C26 Number of video channels received on CPST2 10 ………… C27 Number of subscribers in the community who take CPST2… Major digital tier July 1, 2000 July 1, 2001 C28 Monthly charge for this digital tier/ package………………… C29 Number of video channels received for the price in C28 11 … C30 Number of subscribers in community who take this tier……. * If you are working in Excel or Lotus, this total is automatically calculated. 8 Also report the comparable figure for July 1, 1999. 9 CPST2 may refer to a "mini- tier" with considerably fewer channels than CPST1, or may refer to the next largest analog CPST with fewer subscribers than CPST1. Report either the "mini- tier" or the second analog CPST, if offered, whichever has the next largest number of subscribers compared to CPST1. See, also, Footnote 7. 10 Do not include premium, pay- per- view and audio/ music channels. 11 Do not include pay- per- view or audio/ music channels. Include premium channels only if embedded in this digital tier and included in the monthly charge reported on line C28. 10 Federal Communications Commission DA 01- 1219 11 D. Video Channel Lineup, July 1 st of 2000 & 2001 Instructions Channel Lineup List the channel names for all non- premium, premium, and pay- per- view channels. Do not include audio/ music channels. All channels counted on lines B10 (analog) and B12 (digital) should be included. List broadcast channels according to affiliation (e. g. , NBC, PAX, etc.). If it is a shared channel, list only one channel name (the one with the most viewers). If a channel name is applicable to multiple channels, list that name as many times as there are channels. For example, list two commercial leased access channels as leased access 1 and leased access 2 on different lines. Similarly, list iN Demand (35 pay- per- view channels) on different lines as iN Demand 1, iN Demand 2, iN Demand 3, etc. Category Identify whether the channel is: local broadcast (b), commercial leased access (L), public access (p), educational access (e), governmental access (g), other type of local channel (o), or satellite/ non- local (s). Tier or Type Enter BST, CPST1, or CPST2 if the channel is included in the tiers reported on lines C10, C13, or C26, respectively. Identify all others channels as either other analog (other), digital, or HDTV. Added or Removed (during the 12 months preceding July 1, 2001) a) enter "a" if the program was added (i. e. , if it was not in the July 1, 2000 lineup). b) enter "b" if the program was removed (i. e. , if it was not in the July 1, 2001 lineup). c) leave blank if it was in the channel lineup as of July 1st of both years. 11 Federal Communications Commission DA 01- 1219 12 Tier or a = added Channel Lineup Category Type b = removed D001 D002 Category D003 b = broadcast (local) D004 L = leased access D005 p = public access D006 e = educational access D007 g = government access D008 o = other local channel D009 s = satellite / non- local D010 D011 Tier / Type D012 bst = basic service tier D013 cpst1 = major CPST D014 cpst2 = mini or other CPST D015 other = other analog D016 digital = digital program D017 hdtv = high- definition TV D018 D019 D020 D021 D022 Category D023 b = broadcast (local) D024 L = leased access D025 p = public access D026 e = educational access D027 g = government access D028 o = other local channel D029 s = satellite / non- local D030 D031 Tier / Type D032 bst = basic service tier D033 cpst1 = major CPST D034 cpst2 = mini or other CPST D035 other = other analog D036 digital = digital program D037 hdtv = high- definition TV D038 D039 D040 12 Federal Communications Commission DA 01- 1219 13 Tier or a = added Channel Lineup Category Type b = removed D041 D042 Category D043 b = broadcast (local) D044 L = leased access D045 p = public access D046 e = educational access D047 g = government access D048 o = other local channel D049 s = satellite / non- local D050 D051 Tier / Type D052 bst = basic service tier D053 cpst1 = major CPST D054 cpst2 = mini or other CPST D055 other = other analog D056 digital = digital program D057 D058 D059 D060 D061 D062 Category D063 b = broadcast (local) D064 L = leased access D065 p = public access D066 e = educational access D067 g = government access D068 o = other local channel D069 s = satellite / non- local D070 D071 Tier / Type D072 bst = basic service tier D073 cpst1 = major CPST D074 cpst2 = mini or other CPST D075 other = other analog D076 digital = digital program D077 D078 D079 D080 13 Federal Communications Commission DA 01- 1219 14 Tier or a = added Channel Lineup Category Type b = removed D081 D082 Category D083 b = broadcast (local) D084 L = leased access D085 p = public access D086 e = educational access D087 g = government access D088 o = other local channel D089 s = satellite / non- local D090 D091 Tier / Type D092 bst = basic service tier D093 cpst1 = major CPST D094 cpst2 = mini or other CPST D095 other = other analog D096 digital = digital program D097 D098 D099 D100 D101 D102 Category D103 b = broadcast (local) D104 L = leased access D105 p = public access D106 e = educational access D107 g = government access D108 o = other local channel D109 s = satellite / non- local D110 D111 Tier / Type D112 bst = basic service tier D113 cpst1 = major CPST D114 cpst2 = mini or other CPST D115 other = other analog D116 digital = digital program D117 D118 D119 D120 14 Federal Communications Commission DA 01- 1219 15 Tier or a = added Channel Lineup Category Type b = removed D121 D122 Category D123 b = broadcast (local) D124 L = leased access D125 p = public access D126 e = educational access D127 g = government access D128 o = other local channel D129 s = satellite / non- local D130 D131 Tier / Type D132 bst = basic service tier D133 cpst1 = major CPST D134 cpst2 = mini or other CPST D135 other = other analog D136 digital = digital program D137 D138 D139 D140 D141 D142 Category D143 b = broadcast (local) D144 L = leased access D145 p = public access D146 e = educational access D147 g = government access D148 o = other local channel D149 s = satellite / non- local D150 D151 Tier / Type D152 bst = basic service tier D153 cpst1 = major CPST D154 cpst2 = mini or other CPST D155 other = other analog D156 digital = digital program D157 D158 D159 D160 15 Federal Communications Commission DA 01- 1219 16 Tier or a = added Channel Lineup Category Type b = removed D161 D162 Category D163 b = broadcast (local) D164 L = leased access D165 p = public access D166 e = educational access D167 g = government access D168 o = other local channel D169 s = satellite / non- local D170 D171 Tier / Type D172 bst = basic service tier D173 cpst1 = major CPST D174 cpst2 = mini or other CPST D175 other = other analog D176 digital = digital program D177 D178 D179 D180 D181 D182 Category D183 b = broadcast (local) D184 L = leased access D185 p = public access D186 e = educational access D187 g = government access D188 o = other local channel D189 s = satellite / non- local D190 D191 Tier / Type D192 bst = basic service tier D193 cpst1 = major CPST D194 cpst2 = mini or other CPST D195 other = other analog D196 digital = digital program D197 D198 D199 D200 16 Federal Communications Commission DA 01- 1219 17 Enter notes, if any, regarding answers, and comments or suggestions regarding this survey. Notes 17