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• Mr. Clyde Gouldman Page 7 September 23, 1994 2. A significant percentage or number of channels in the package were removed from regulated tiers. Adelphia's Form 1215 submission specifies that 31 channels formerly carried on two separate regulated tiers of service on April 1, 1993, have been removed and classified as "a la carte" channels. Therefore, 100% of the a la carte channels other than premium channels were removed from regulated tiers. 3. The package price is so deeply discounted when compared to the price of an individual channel or the sum of the prices of the individual channels that it does not constitute a realistic set of service choice because subscribers will not have any realistic options other than subscribing to the package. The total price for the 31 channels removed from the regulated tiers of service if purchased at the per channel rate would be $15.97. When $15.97 is added to the current basic cable rate of $8.70 the total is $24.67. In addition, a subscriber must lease from Adelphia "a sophisticated piece of electronic equipment located on the cable line outside" a subscriber's home ("CableSelect Box") if that subscriber wishes to select only a portion of the • a la carte channels available. The monthly fee for the CableSelect Box is $6.00. If, however, the subscriber chooses one of the packages (CableValue or CablePlus) of a la carte channels made available by Adelphia, the CableSelect Box is not required thereby eliminating the $6.00 monthly charge. Thus, taking into consideration the entire price paid by a subscriber, including rental of the CableSelect Box, Adelphia's package price represents a deep discount compared to the price of an individual channel. This does not constitute a realistic set of service choice because of the heavy equipment charge which subscribers face if they do not purchase the package. 4. The channels taken from regulated tiers have not traditionally been marketed "a la carte." Prior to April 1, 1993, not one of the non -premium channels currently offered on an "a la carte" basis had ever been marketed separate from a regulated service tier, nor had Adelphia marketed such channels as "a la carte" channels. 5. An entire regulated tier has been eliminated and turned into an a la carte package. As described above, Adelphia has completely eliminated two regulated tiers of service which existed prior to April 1, 1993, and converted each tier into "a la carte" channels, then created packages of those a la carte channels to be marketed to customers. • 6. The subscriber must pay a significant equipment charge to purchase an individual channel in the package.