Federal Communications Corn.mission DA 96-1570 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of Tele-Media Company of the Mid-South Small System Filing to Support Cable Programming Services Rate Adopted: September 18, 1996 ) ) ) CUID No. V A0256 Town of Colonial Beach ) ) ) ) ) ORDER Released: September 23, 1996 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider two complaints filed with the Federal Communications Commission ("Commission") regarding the rate that Tele-Media ~ompany of the Mid-South ("Tele-Media") was charging for its cable programming services tier ("CPST") in the franchise area referenced above.1 On December 15, 1995, Tele-Media filed with the Commission FCC Form 1230, seeking to justify its CPST rate through the simplified small system cost of service procedures under the Commission's Small System Order.2 In this Order we grant Tele-Media's request for small system relief under the Small System Order and, based on our review of Tele­ Media's FCC Form 1230 filing, deny the pending CPST complaints and find the CPST rate to be not unreasonable. 2. Under the Cable Television Consumer Protection and Competition Act of 1992, and the Commission's rules implementing it, 47 C.F.R. Part 76, Subpart N, the Commission must review a cable operator's rates for its CPST upon the filing of a valid complaint.3 The filing of . a valid complaint triggers an obligation on behalf of the cable operator to file a justification of its CPST rates. Under the Commission's rules, an operator may attempt to justify its rates through a benchmark showing, a cost of service showing, or a small system cost of service 1 The first valid complaint received by the Commission for the above referenced CUID was on February 3, 1994. 2 Sixth Report and Order and Eleventh Order on Reconsideration, MM Docket Nos. 92-266 & 93-215, IO FCC Red 7393 (1995)("Small System Order"). Tele-Media initially filed FCC Form 1220 on July 12, 1994. That filing is superseded by the later-filed FCC Form 1230. ·' Pub. L. No. 102-385, §§ 3, 9, 14, 106 Stat. 1460 (1992) ("1992 Cable Act"); Communications Act, § 623(c), as amended, 47 U.S.C. § 543(c) (1993). 11629 Federal Communications Commission DA 96-1570 showing. In any case, the operator has the burden of demonstrating that its CPST rates are not unreasonable.4 3. The Commission's original rate regulations took effect on September 1, 1993. The Commission subsequently revised its rate regulations effective May 15, 1994.5 In a further effort to offer small cable companies administrative relief from rate regulation, the Commission amended the definition of small cable companies and small systems and introduced a simplified form of small system rate relief in the Small System Order. Cable systems serving 15,000 or fewer subscribers, and owned by a company having 400,000 or fewer subscribers, may elect to use the new small cable system rate mechanism in lieu of other Commission rate processes, provided the Commission has not reached a final resolution on the rate complaints filed against the system. Operators attempting to justify their rates through small system relief must file FCC Form 1230. FCC Form 1230 requires that the Operator Selected Per Subscriber Monthly Programming Rate Per Channel (FCC Form 1230, Line Al 1) not exceed the Per Subscriber, Per Channel Monthly Programming Costs (FCC Form 1230, Line A6).6 If the maximum rate established on FCC Form 1230 does not exceed $1.24 per channel, the rate shall be presumed reasonable. 4. On December 15, 1995, Tele-Media filed FCC Form 1230 seeking to justify its CPST rate in the above-referenced community through the simplifed small system cost of service procedures under the Commission's Small System Order. We find that Tele-Media is a company with fewer than 400,000 total subscribers and that the system in question serves fewer than 15,000 subscribers, making it eligible for small system relief. Further, Tele-Media's filing shows that its actual rate per channel for regulated cable service (FCC Form 1230, Line All) in the franchise area does not exceed its per subscriber, per channel monthly prognimming costs (FCC Form 1230, Line A6) and the Maximum Permitted Rate (FCC Form 1230, Line AlO) does not exceed $1.24. We, therefore, find the rate in the above-referenced community to be not unreasonable. 7 5. Accordingly, IT IS ORDERED, pursuant to section 0.321 of the Commission's rules, 47 C.F.R. § 0.321, that Tele-Media's request for small system relief IS GRANTED. • 47 C.F.R §§ 76.956(b) and 76.934. s Third Recon. Order, 9 FCC Red at 4338. 6 See instructions for Line All, FCC Form 1230, page 3. 7 This finding is based solely on the representation·s of the operator. Should information come to our attention that these representations were materially inaccurate, we reserve the right to take appropriate action. This Order is not to be construed as a finding that we have accepted as correct any specific entry, explanation or argument made by any party to this proceeding not specifically addressed herein. 11630 Federal Communications Commission DA 96-1570 6. IT IS FURTHER ORDERED that the CPST rate charged by Tele-Media in the above-referenced CUID number during the period under review IS JUSTIFIED. 7. IT IS FURTHER ORDERED that the complaints against the CPST rate charged by Tele-Media during the period under review with respect to the above-referenced CUID numbers ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau 11631