NEWSReport No. CS-97- 27 CABLE SERVICES ACTION October 15, 1997 COMMISSION UNANIMOUSLY ADOPTS COMCAST SOCIAL CONTRACT The Commission has adopted a social contract with Comcast Cable Communications, Inc. The contract was negotiated pursuant to the Commission's authority to regulate cable services under Title IV of the Communications Act and in accordance with the Commission's authority to consider and adopt social contracts as an alternative to other regulatory approaches. Under terms of the contract, Comcast will upgrade and improve its systems and will provide free cable service connections, modems, and modem service to public and private schools and libraries in its franchise areas, in return for which Comcast may create migrated product tiers in those systems Comcast had not created migrated or new product tiers previously. Important elements of the Comcast social contract include: The upgrading of a substantial number of Comcast's systems by March 31, 1999. By that date, 80 percent of Comcast's subscribers will be served by a system with a capacity of at least 550 MHz. At least 60 percent of Comcast's subscribers will be served by a system with a capacity of at least 750 MHz. Systems serving at least 80 percent of Comcast's subscribers will use fiber optic technology to transport signals from system headends to neighborhood nodes. Finally, at least 80 percent of Comcast's systems will use addressability or other suitable technology to make interactive services available to subscribers and to enhance the ability of consumers to make service choices. Comcast will provide a free service connection to each public and private school located within 200 feet of Comcast's activated cable plant. Comcast will provide a service connection at cost to public and private schools beyond 200 feet of its activated cable plant. Comcast will also provide a free modem and free modem service to all connected schools within a year after Comcast makes personal computer-based internet access service via cable commercially available to residential customers. Basic and enhanced basic service, and service offered on migrated and new product tiers, will be provided to all connected public and private schools free of charge. Additional internal wiring to serve additional outlets in any school will be provided at cost. That wiring will be provided at no charge if Comcast is able to coordinate installation with other comparable electrical wiring installation being done in new or rehabilitated schools. Comcast will provide a free monthly educational program listing to each connected school. Comcast will sponsor local workshops on use of the cable modem service in each franchise area. Comcast will offer 250 public libraries a free cable modem and free unlimited cable modem service through each modem. The cable modem service will be made available within one year after Comcast makes personal computer-based internet access service via cable commercially available to residential customers. Comcast will provide a free cable service connection to the selected libraries located within its franchise areas and within 200 feet of Comcast's activated cable plant and will provide a cable service connection at cost to such libraries located within its franchise areas but beyond 200 feet of Comcast's activated plant. In limited circumstances, Comcast may move up to four existing programming services from its basic and enhanced basic tiers to a single migrated product tier on systems having a capacity of at least 550 MHz and providing 55 channels subject to rate regulation. Comcast may do so only in systems where Comcast has not created a la carte packages or which were not covered by the Comcast rate resolution adopted by the Commission on December 1, 1995. On January 1, 1998, Comcast may reclassify each migrated product tier as a new product tier. These new product tiers will be treated as all other new product tiers under the Commission's rules. Commenting on the Comcast social contract, Cable Services Bureau Chief Meredith J. Jones said, "This social contract is a very positive step for Comcast subscribers and the company. Comcast subscribers, over the next two years, will benefit from upgraded systems and the availability of new products as the company moves forward. Additionally, schools and libraries in Comcast service areas will benefit from free access to the internet." Action by the Commission, October 10, 1997, by Order (FCC 97-375). Chairman Hundt, Commissioners Quello, Ness, and Chong. -FCC- News Media contact: Morgan Broman at (202) 418-2358; Cable Services contact: Royce Dickens (418-7200).