Report No. CS 97-10              CABLE SERVICES ACTION                   March 14, 1997

         COMMISSION ADOPTS CABLE SYSTEM UNIFORM RATE-SETTING
      METHODOLOGY TO IMPROVE MARKETING AND FOSTER COMPETITION IN
                      VIDEO PROGRAMMING MARKETS

     The Commission has adopted an order (FCC 97-86) that will permit a cable television
system operator to submit a proposal to establish uniform rates across multiple franchise areas. 
A uniform rate structure will permit an operator to advertise uniform regulated rates on a basis
broader than a franchise area.  Additionally, it will permit the operator to respond better  to
competition from alternative providers that may market and charge for services without regard to
franchise area boundaries.  This enhanced flexibility will benefit competition and lead to
improved service for consumers.

     Currently cable operators serving multiple franchise areas often have different maximum
permitted rates in each franchise area.  The revised rules will permit a cable operator to submit a
proposal for a uniform rate structure to the Commission.  The Commission will permit the
establishment of uniform rates across multiple franchise areas upon its finding that the cable
operator's proposed rate structure will be reasonable.  Under any uniform rates approach, rates
for regulated basic service tiers ("BSTs") may not exceed the BST rates that would be established
under our existing regulations; thus, BST rates will either decrease or remain the same under a
uniform rates mechanism.  Under a uniform rate structure an operator will be able to advertise
and market services offered across franchise boundaries.

     Commenting on the uniform rate order, Cable Services Bureau Chief Meredith J. Jones
said, "The ability to advertise and market rates across franchise boundaries should be a highly
useful tool for cable operators.  Operators need increased flexibility to respond to competition in
the marketplace.  This order provides that flexibility and consumers should see additional
subscription options."

     Action by the Commission March 13, 1997, by Report and Order (FCC 97-86). 
Chairman Hundt, Commissioners Quello, Ness and Chong.

                               --FCC--

News Media Contact: Morgan Broman at (202) 418-2358
Cable Services Bureau Contacts: Larry Walke and JoAnn Lucanik at (202) 418-7200