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73 <br /> <br /> Mr. Fisher stated that Adelphia needs to do what makes the most sense for the <br />company, but they would be willing to listen to all considerations. <br /> <br /> Ms. Daugherty stated that she did not understand why the cost of service road would <br />be necessary. <br /> <br /> IVlr. Fisher stated that cost of service would effectively be rolling rates back, noting that <br />there are many costs for Adelphia including system upgrades, new programming, and a new <br />phone system, and it would make it difficult to offer new competitive offerings to deal with <br />competitors in the area. <br /> <br /> Ms. Slaughter questioned why Adelphia saw rates rolling back. Ms. Slaughter stated <br />that she thought the question before Council is whether the a la carte offerings fit the <br />criterion of the FCC. <br /> <br /> Mr. Fisher stated that if Council declares Adelphia's a la carte offerings not to be <br />legitimate, the current basic 17 channels offered for $8.95 (sic - the current rate is $8.70 with <br />the current benchmark according to Adelphia's form 1200 at $8.55) could, under the cost of <br />service raise to $12.00, and the 50 channels a la carte, currently priced at $18.00, could <br />increase to $24.00 or $28.00. <br /> <br /> Responding to a question from Mr. Toscano, Mr. Fisher stated that ifAdelphia <br />appealed and lost, they would refile form 1200 and would then be forced into a decision on <br />whether to go to either cost of service or benchmark. Were Council to reject the proposed <br />resolution, Adelphia could effectively stay where it is with regard to rates. <br /> <br /> Mr. Toscano stated that it currently costs $6.00 per month for customers to rent the <br />box required to get the a la carte channels, and that cost, plus the cost of the a la carte <br />channels, realistically makes it too expensive for consumers to use. Mr. Toscano suggested <br />that Adelphia either cut out the cost for the box or charge a minimal fee, such as $1.00, and <br />let people buy whatever channels they want. <br /> <br /> Mr. Fisher stated that Adelphia representatives are prepared to meet with City officials <br />on Friday morning to privately negotiate and, any and all options that would put Adelphia in <br />the best possible poskion would be considered. <br /> <br /> Rev. Edwards, referring to Mr. Fisher's cormnent that approving the resolution would <br />be forcing Adelphia to make a decision, asked if it is fair or true to say that Adelphia could <br />stay where they are if they wanted to, even if it were not financially the best for Adelphia? <br /> <br /> Mr. Fisher stated that he did not know enough about the financial situation to answer <br />the question. Mr. Fisher stated that if Adelphia refiled under benchmarks it would not <br />support the existing rates so Adelphia would be forced to file under cost of service. Mr. <br />Fisher stated that Adelphia's rates could stay where they are but in doing so, the company <br />might lose the right to go to cost of service. Mr. Fisher stated that rates in other cities would <br />also go down as well if they went down locally. <br /> <br /> Rev. Edwards stated that he understood that it is important for Adelphia to maintain a <br />high level of technology in order to maintain good service. <br /> <br />Mr. Fisher stated that cable television is a very capital intensive business. <br /> <br /> Mr. Hendrix stated that the issue people have difficulty with is, if Adelphia is a <br />profitable business at the current rates, why would they have to increase up to the cost of <br />service. <br /> <br /> Mr. Fisher stated that Adelphia is currently not profitable though they are showing <br />revenue growth. <br /> <br /> <br />