Federal Communications Commission DA 21-356 DA 21-356 Released: March 29, 2021 MEDIA BUREAU ACTION FOURTH QUARTER 2020 INFLATION ADJUSTMENT FIGURES FOR CABLE OPERATORS USING FCC RATE REGULATION FORM 1240 NOW AVAILABLE This Public Notice is applicable to rate-regulated cable operators that use FCC Forms to justify their cable rates. Pursuant to 47 CFR § 76.922(d)(2) and § 76.922(e)(2) of the Commission’s rules, cable operators may adjust the non-external cost portion of their rates for inflation. Cable operators adjusting the non-external cost portion of their rates for inflation should follow the instructions provided with the applicable FCC Form. All inflation adjustment figures 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 indexes from the BEA news release dated March 25, 2021 (BEA 21-11) at Table 1.7.4 (Price Indexes for Gross Domestic Product, Gross National Product, and Net National Product) Line 4 (Gross National Product). Table 1.7.4 can be found at this link: https://apps.bea.gov/iTable/iTable.cfm?reqid=19&step=3&isuri=1&1921=survey&1903=42 Operators filing FCC Form 1240 may make an adjustment based on quarterly figures. The fourth quarter 2020 inflation factor for operators using FCC Form 1240 is 2.04%. The adjustment factor of 2.04% is a measure of the annualized change in prices occurring over the period from October 1, 2020 to December 31, 2020. The inflation adjustment factor is calculated by dividing the GNP-PI for the fourth quarter of 2020 (114.375) by the GNP-PI for the third quarter of 2020 (113.800). 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 that includes some portion of the fourth quarter of 2020 should enter the inflation factor on the appropriate lines of Worksheet 1 of FCC Form 1240 as “0.0204.” 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 “1.0204.” To date, the Commission has released ninety-eight quarterly inflation factors for use with FCC Form 1240. The following table lists these factors beginning in 2017. For pre-2017 inflation figures see DA 17-646, 32 FCC Rcd 5479 (rel. July 5, 2017), available at https://www.fcc.gov/general/inflation-updates-forms-1210-and-1240. Year Quarter Dates Covered Inflation Factor 2017 First Jan. 1, 2017 – Mar. 31, 2017 1.96% 2017 Second Apr. 1, 2017 – Jun. 30, 2017 1.01% 2017 Third Jul. 1, 2017 – Sep. 30, 2017 2.09% 2017 Fourth Oct. 1, 2017 – Dec. 31, 2017 2.33% 2018 First Jan. 1, 2018 – Mar. 31, 2018 2.20% 2018 Second Apr. 1, 2018 – Jun. 30, 2018 3.04% 2018 Third Jul. 1, 2018 – Sep. 30, 2018 1.81% 2018 Fourth Oct. 1, 2018 – Dec. 31, 2018 1.68% 2019 First Jan. 1, 2019 – Mar. 31, 2019 0.90% 2019 Second Apr. 1, 2019 – Jun. 30, 2019 2.42% 2019 Third Jul. 1, 2019 – Sep. 30, 2019 1.81% 2019 Fourth Oct. 1, 2019 – Dec. 31, 2019 1.28% 2020 First Jan. 1, 2020 – Mar. 31, 2020 1.41% 2020 Second Apr. 1, 2020 – Jun. 30, 2020 -1.82% 2020 Third Jul. 1, 2020 – Sep. 30, 2020 3.51% 2020 Fourth Oct. 1, 2020 – Dec. 31, 2020 2.04% 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: https://www.fcc.gov/general/inflation-updates-forms-1210-and-1240. Media Contact: Janice Wise at (202) 418-8165 Media Bureau Contact: Kevin Green at (202) 418-2127 TTY: (202) 418-0432 or 1 (888) 835-5322 --FCC-- 2