PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION 445 12TH STREET, S.W. WASHINGTON, D.C. 2055 DA 10 - 2434 News media information 202/418-0500 Fax-On-Demand 202/418-2830 Internet: http://www.fcc.gov ftp.fcc.gov MEDIA BUREAU ACTION December 29, 2010 THIRD QUARTER 2010 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 Third Quarter 2010 inflation factor for operators using FCC Form 1240 is 2.09%. The adjustment factor of 2.09% is a measure of the annualized change in prices occurring over the period from July 1, 2010 to September 30, 2010. 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 December 22, 2010 (BEA 10-62) at Table 6 (Addenda: Gross National Product). The inflation adjustment factor is calculated by dividing the GNP-PI for the Third Quarter of 2010 (111.052) by the GNP-PI for the Second Quarter of 2010 (110.478). 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 Third Quarter of 2010 should enter the inflation factor on the appropriate lines of Worksheet 1 of FCC Form 1240 as “0.0209.” 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 “1.0209.” To date, the Commission has released sixty-one quarterly inflation factors for use with FCC Form 1240. 2 The following table lists these factors beginning in 2003:1 Year Quarter Dates Covered Inflation Factor 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% 2009 Second Apr. 1, 2009 – Jun. 30, 2009 0.00% 2009 Third Jul. 1, 2009 – Sep. 30, 2009 0.41% 2009 Fourth Oct. 1, 2009 – Dec. 31, 2009 0.50% 2010 First Jan. 1, 2010 – Mar. 31, 2010 1.08% 2010 Second Apr. 1, 2010 – Jun. 30, 2010 1.91% 2010 Third Jul. 1, 2010 – Sep. 30, 2010 2.09% 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: Janice Wise (202) 418-8165 Media Bureau Contact: Jane Frenette at (202) 418-2245 TTY: (202) 418-0432 or 1 (888) 835-5322 1 For pre-2003 inflation figures see DA 06-1987 (rel. October 5, 2006), available at http://www.fcc.gov/mb/csinflat.html. --FCC--