PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION News Media Information 202 / 418-0500 445 12TH STREET, S.W. Fax-On-Demand 202 / 418-2830 WASHINGTON, D.C. 20554 Internet: http://www.fcc.gov ftp.fcc.gov DA 09-1500 July 2, 2009 MEDIA BUREAU ACTION FIRST QUARTER 2009 INFLATION ADJUSTMENT FIGURES FOR CABLE OPERATORS USING FCC FORM 1240 NOW AVAILABLE As described in the instructions for FCC Form 1240, cable operators may adjust the non-external cost portion of their rates for inflation based on quarterly figures released by the Federal Communications Commission. The First Quarter 2009 inflation factor for operators using FCC Form 1240 is 2.76%. The adjustment factor of 2.76% is a measure of the annualized change in prices occurring over the period from January 1, 2009 to March 31, 2009. All adjustments are based on changes in the Gross National Product Price Index (GNP-PI) published by the United States Department of Commerce, Bureau of Economic Analysis (BEA). The Media Bureau obtained the chain-type price indices from the BEA news release dated June 25, 2009 (BEA 09-29) at Table 6 (Addenda: Gross National Product). The inflation adjustment factor is calculated by dividing the GNP-PI for the First Quarter of 2009 (124.129) by the GNP-PI for the Fourth Quarter of 2008 (123.286). The result of this calculation is converted from a quarterly change measurement factor to an annual change measurement factor by raising it to the fourth power. Operators calculating the Inflation Factor for a True-Up Period which includes some portion of the First Quarter of 2009 should enter the inflation factor on the appropriate lines of Worksheet 1 of FCC Form 1240 as “0.0276.” Operators using this factor for calculating the Projected Period Inflation Segment of FCC Form 1240 should enter this number on Line C3 (January 1996 version), or Line C5 (July 1996 version) as “1.0276.” 2 To date, the Commission has released fifty-five quarterly inflation factors for use with FCC Form 1240. The following table lists these factors beginning in 2002:1 Year Quarter Dates Covered Inflation Factor 2002 First Jan. 1, 2002 – Mar. 31, 2002 1.21% 2002 Second Apr. 1, 2002 – June 30, 2002 1.24% 2002 Third Jul. 1, 2002 – Sep. 30, 2002 1.02% 2002 Fourth Oct. 1, 2002 – Dec. 31, 2002 1.78% 2003 First Jan. 1, 2003 – Mar. 31, 2003 2.39% 2003 Second Apr. 1, 2003 – Jun. 30, 2003 1.00% 2003 Third Jul. 1, 2003 – Sep. 30, 2003 1.66% 2003 Fourth Oct.1, 2003 – Dec. 31, 2003 1.50% 2004 First Jan. 1, 2004 – Mar. 31, 2004 2.84% 2004 Second Apr. 1, 2004 – Jun. 30, 2004 3.23% 2004 Third Jul. 1, 2004 – Sep. 30, 2004 1.43% 2004 Fourth Oct. 1, 2004 – Dec. 31, 2004 2.26% 2005 First Jan. 1, 2005 – Mar. 31, 2005 2.89% 2005 Second Apr. 1, 2005 – Jun. 30, 2005 2.57% 2005 Third Jul. 1, 2005 – Sep. 30, 2005 3.31% 2005 Fourth Oct. 1, 2005 - Dec. 31, 2005 3.47% 2006 First Jan. 1, 2006 - Mar. 31, 2006 3.12% 2006 Second Apr. 1, 2006 - Jun. 30, 2006 3.31% 2006 Third July 1, 2006 – Sep. 30, 2006 1.89% 2006 Fourth Oct. 1, 2006 – Dec. 31, 2006 1.67% 2007 First Jan. 1, 2007 – Mar. 31, 2007 4.17% 2007 Second Apr. 1, 2007 – Jun. 30, 2007 2.65% 2007 Third Jul. 1, 2007 – Sep. 30, 2007 1.03% 2007 Fourth Oct. 1, 2007 – Dec. 31, 2007 2.45% 2008 First Jan. 1, 2008 – Mar. 31, 2008 2.68% 2008 Second Apr.1, 2008 – Jun. 30, 2008 1.11% 2008 Third Jul. 1, 2008 – Sep. 30, 2008 3.92% 2008 Fourth Oct. 1, 2008 – Dec. 31, 2008 0.55% 2009 First Jan.1, 2009 – Mar. 31, 2009 2.76% The Commission releases a new quarterly inflation factor for operators using FCC Form 1240 four times each year. The inflation factor for a given quarter is usually released between three and four months after the end of the quarter, depending on the schedule of the Department of Commerce. The release of a new factor is posted on the Commission's Internet site at: http://www.fcc.gov/mb/csinflat.html. Media Contact: David Fiske at (202) 418-0513 Media Bureau Contact: Jane Frenette at (202) 418-2245 TTY: (202) 418-0432 0r 1 (888) 835-5322 --FCC-- 1 For pre-2002 inflation figures see DA 06-1987 (rel. October 5, 2006), available at http://www.fcc.gov/mb/csinflat.html.