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MOSS & BARNETT A PPOFF 10NAL AS [An ON Mr. Clyde Gouldman • Page 6 September 23, 1994 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 system wide customers subscribe to the CableValue package and 17,742 system wide customers subscribe to the CablePlus package. 4. Subscribers are given notice that fully discloses their options, as well as fully discloses the total price (including related equipment charges) associated with exercising any of these options. Attached hereto as Exhibit 5 is customer service information provided by Adelphia to all subscribers identifying the services available on the cable system and their associated prices. This customer service information appears to disclose subscriber options and the total price associated with exercising • any option. 5. An insignificant percentage or number of channels in the package has been removed from the regulated tiers. Adelphia has completely eliminated two tiers of service which were available on April 1, 1993 and has classified all 31 channels formerly on those two tiers of service as "a la carte" channels. In addition, the rates charged by Adelphia for their "a la carte" packages (CableValue and CablePlus) closely resemble the rates charged for those services when they were classified as regulated service tiers prior to April 1, 1993. For example, the a la carte package known as CableValue is currently priced at $16.45 whereas the former "Economy Service" tier present on April 1, 1993 was priced at $16.95. Likewise, the a la carte package known as CablePlus currently is priced at $21.45 whereas the former "Standard Service" tier present on April 1, 1993 was priced at $21.95. We will now analyze the ten (10) factors outlined by the FCC which weigh against allowing unregulated treatment of collective offerings of "a la carte" channels. 1. The introduction of the "a la carte" package results in avoiding rate reductions that otherwise would have been required under the FCC's rules. This is impossible for the City to determine since we are unable to 40 access all of the necessary information required to run calculations utilizing FCC Form 1200.