NEWSReport No. DC 95-23    ACTION IN DOCKET CASE                    February 6, 1995


               COMMISSION ENDS TRANSITION PERIOD FREEZE ON 
                SMALL CABLE  OPERATORS AND LOW-PRICE SYSTEM
                    OPERATORS ADJUSTMENTS FOR INFLATION
                          (MM DOCKET NO. 92-266)

     The Commission today adopted an order ending the transition period freeze on small
cable television system operators' and low-price system operators' adjustment of their rates for
inflation.

     In the Commission's Second Order on Reconsideration (released on March 30, 1994),
systems owned by small operators and low-price systems were allowed to reduce rates by less
than the full 17% competitive differential during a transition period to allow for a review of such
operators' prices and costs.  "Small operators" are defined as those serving 15,000 or fewer
subscribers and not affiliated with a larger operator.  "Low-price" systems" are defined as those
systems that charge relatively low prices for regulated services (under benchmark rates on March
31, 1994).  At the time of the adoption of the Second Order on Reconsideration, the Commission
decided that, since these two types of systems were not required to reduce their rates by the full
17% competitive differential, they would not be allowed to increase their transition rates to
reflect increases in inflation at that time.  

     Today's Order allows small operators and low-price systems that have taken advantage
of the  transition relief to adjust their transition rates to reflect increases in inflation without any
further delay.  The Order provides that such operators may adjust their rates to reflect the net
of inflation adjustments permitted to other operators, minus any inflation adjustments they have
already received.  The Order also provides that in the future, small operators and low-price
systems may make inflation adjustments in the same manner as other cable operators.

     Action by the Commission February 3, 1995, by Ninth Order On Reconsideration 
(FCC 95-43).

     News Media contact: Morgan Broman (202) 416-0852; Cable Services Bureau contact:
Paul D'Ari at (202) 416-0800.