NEWSNEWSReport No. CS 95-14                    CABLE SERVICES ACTION September 12, 1995

NEWS       DEADLINE FOR "OPT OUT" PERIOD FOR CONTINENTAL SOCIAL CONTRACT
           PASSES: NO COMMUNITIES FILE TO OPT OUT OF CONTRACT BENEFITS

     Another step has been taken towards the full implementation of the Social Contract
between the Commission and Continental Cablevision, Inc.  A September 5th deadline for
communities to "opt out" of the contract has passed and none of the 72 local franchising
authorities (LFSs) that could have opted out of the Contract did so.  LFAs with pending basic
service tier (BST) cost-of-service rate cases had the right, under Section I of the Contract, to
opt out of the Contract's BST cost-of-service refund settlement provisions  and to adjudicate
any amounts owed to customers in those service areas pursuant to Commission rules.

     "I think the fact that all cost-of-service local franchising authorities have decided to
accept the basic service tier rates and refunds provided for in the Social Contract is a very
strong endorsement of the work that has been done by both the Commission and  Continental. 
As I have said before, this is a fair settlement of rate complaints and it will provide rate
stability and system upgrades," said Meredith J. Jones, Chief of the Cable Services Bureau.

Key elements of the Social Contract include:

      A Continental commitment to invest $1.35 billion during 1995-2000 to
      upgrade its domestic cable systems.

      A Continental commitment to establish lifeline basic service tiers by
      reducing rates on all its systems by 15% to 20%.  Basic rate reductions
      may be recovered on the cable programming services tier.

      Resolution of the pending cases for all of Continental's regulated cable
      programming services tiers and regulated cost-of-service BSTs, and all
      unregulated cable programming services.

      An estimated $9.5 million in subscriber in-kind refunds.

New Media contact:  Morgan Broman (202) 416-0852; Cable Services Bureau contacts: 
Jerome Fowlkes, JoAnn Lucanik and Lenworth Smith, Jr. (202) 416-0800.
                                   -FCC-