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Report and Order, and Fifth Notice of Proposed Rulemaking, MM Docket 92-266, II c "A La Carte" Packages). The City renders . the below Findings of Fact regarding the five (5) factors the FCC has identified which, if present, would suggest that the rates for the "a la carte" offerings should not be regulated. 1. The operator had offered (or begun to explore offering) "a la carte" packages consisting of non -premium channels prior to rate regulation. In March of 1993, Adelphia sent to all of its customers a notice of rate change wherein Adelphia increased many of its charges for what were then known as satellite service, economy service and standard service and decreased the charge for expanded satellite service and certain equipment charges. Adelphia did not offer any non -premium channels on an "a la carte" basis at that time. The FCC's rate regulations were adopted on April 1, 1993. These rate regulations were originally to take effect June 21, 1993, however the FCC delayed the effective date until September 1, 1993. Based on the foregoing, no "a la carte" packages consisting of non -premium channels were offered prior to April 1, 1993, the date specified within the FCC's regulations as the beginning of rate regulation. (See 47 C.F.R. § 76.986.) 2. The operator has conducted market research that suggest introducing an "a la carte" package would be • profitable, other than as a means of evading rate regulation. • Adelphia has submitted no market research or other information as part of its Form 1215 submission to the City suggesting that "a la carte" packages would be profitable. Further, the City has received no other information from Adelphia which includes market research or otherwise statistically supports creation of "a la carte" packages other than as a means of evading rate regulation. 3. A subscriber is free to select which channels will be included in the package. A subscriber may select the channels they wish to include in the service they receive from Adelphia. However, Adelphia has created a "CableValue" package and a "CablePlus" package of a la carte channels which result in lower overall monthly rates for the channels included in those packages. Subscribers are unable to choose which channels to be included in the CableValue package or the CablePlus package. When reviewing the number of subscribers which take advantage of selecting channels individually as opposed to purchasing the packages offered by Adelphia, in no case do more than 33 subscribers select a given "a la carte" programming service which was formerly part of a regulated tier of service. Rather, 24,117 -'-