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MOSS & BARNETT <br />A PROFMIONAL ASSOCIATION <br />Mr. Clyde Gouldman <br />• Page 2 <br />September 23, 1994 <br />cable operators for completion. Rather, Form 1215 includes six (6) <br />instructions which cable operators must complete regarding channels offered on <br />an individual or "a la carte" basis and packages of these channels. Attached <br />hereto as Exhibit 1 is a copy of FCC Form 1215 for the City's reference. <br />REVIEW OF ADELPHIA'S FORM 1215 <br />In reviewing Adelphia's Form 1215, attached hereto as Exhibit 2, we note <br />Adelphia responded to the first four (4) instructions referenced in the form. <br />However, Adelphia failed to respond to instructions five (5) and six (6) <br />wherein Adelphia was to provide the following: <br />5. Describe any equipment necessary to receive a la carte channels or a <br />package of a la carte channels. <br />6. Describe any upgrade or downgrade charge you assess for adding or <br />dropping an a la carte channel or a package of a la carte channels. <br />On September 15, 1994, I sent a letter to Mr. Craig A. Schmid, Adelphia's <br />Director of Rate Regulation, requesting information to assist the City in <br />understanding required equipment to receive a la carte channels as well as <br />• associated charges. A copy of my letter and Adelphia's response is attached <br />as Exhibit 3. <br />APPLICABLE FCC REGULATIONS <br />The FCC's regulations regarding "a Is carte" channels are found at 47 <br />C.F.R. Section 76.986 which provides in pertinent part: <br />Collective offerings of unregulated per -channel or <br />per -program ("a la carte") video programming shall not be <br />regulated if: <br />1. The price for the combined package does not exceed <br />the sum of the individual charges for each component <br />of service, and <br />2. The operator continues to provide the component parts <br />of the package to subscribers separately in addition <br />to the collective offering. <br />The second condition will be met only when the per -channel <br />offering provides consumers with a realistic service <br />choice. Collective offerings available on April 1, 1993 <br />shall not be regulated if subsequently offered on the same <br />terms and conditions as were in effect on that date. <br />• The City must provide notice of its decision to Adelphia and provide the <br />public notice of its decision within seven (7) days pursuant to local <br />procedural rules of public notice. Adelphia or consumers may make an <br />interlocutory appeal of the City's initial decision to the FCC within fourteen <br />