Low-Price Cable Television System Rate Regulation

The Commission has adopted a Report and Order regarding low- price system rate regulation. The Report and Order makes permanent the transition relief afforded to low-price cable television systems, and establishes final rules for low-price system rate regulation. Based on data received in a cost survey conducted in the Fall of 1995, the Report and Order finds that low-price system operators have lower cash flow ratios and receive lower profit margins for their low-price systems than operators of systems already regulated under the Commission's revised benchmark approach receive for their systems. The Report and Order, therefore, states that low-price system rates are reasonable and that low-price systems will not be required to reduce their rates by the full competitive differential or any lesser amount. Low-price systems will be able to continue charging for cable services in accordance with the current rules for such systems.