NEWS

CS-95-11        August 3, 1995

                      COMMISSION UNANIMOUSLY ADOPTS 
               CONTINENTAL CABLEVISION, INC. SOCIAL CONTRACT

     The Commission has adopted a Social Contract resolving cable television rate
complaints pending against Continental Cablevision, Inc. and requiring Continental to upgrade
its systems.  The Contract was negotiated in accordance with the Commission's authority to
consider and to adopt social contracts as alternatives to other regulatory approaches applicable
to cable television rates.  The draft Continental Social Contract was released on April 3, 1995
and the comment period closed on June 6, 1995.  Comments were received from 121 local
franchising authorities, government officials, public interest groups, and subscribers, 97 of
which supported the agreement.

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 current rate levels for all of Continental's regulated cable
      programming services tiers, and all of Continental's unregulated basic
      service tiers, whether regulated or unregulated.

      An estimated $9.5 million in subscriber in-kind refunds, of which
      approximately $6.2 million is for basic service tier and cable programming
      services tier subscribers in franchise areas where Continental has justified
      rates through cost of service showings and $3.3 million is for cable
      programming services tier subscribers in franchise areas where Continental
      has justified rates through use of the Commission's benchmark formula.  

      An opportunity for local franchising authorities to opt out of the settlement
      of basic service tier cost of service refunds within 30 days of the release of
      the Commission's order adopting the Social Contract.  Justifications for
      basic service tier rates in franchise areas where Continental has submitted
      benchmark filings are not affected by the Contract.

      Annual progress reports to the Commission and all Continental local
      franchising authorities.

      The resolution of pending rate cases is without any finding by the
      Commission of any wrongdoing by Continental.

 Commenting on the adoption of the Continental Social Contract, Cable Services
Bureau Chief Meredith J. Jones said, "I am gratified by the adoption of this Social Contract
by the Commission.  The Contract reflects a fair resolution of these rate complaints that is a
very positive step for consumers, Continental and the Commission.  Consumers can look
forward to higher quality service and rate stability.  Continental will be upgrading its systems
and moving forward."

 Several modifications have been negotiated from the proposed Social Contract.  Key
Contract modifications include:

      Continental shall initiate in-kind refunds no later than the start of the first full
      month beginning 90 days after the Commission's approval.

      Continental may reduce basic service tier rates up to an additional 5% after
      reducing the price on its basic service tier by 15% to create a lifeline basic service
      tier for a maximum reduction of 20%, where there is a disparity in basic service
      tier rates among franchise areas within a single Continental system and the
      reduction will bring about greater uniformity of basic service tier rates.

      The Commission will take the rate restructuring done to create the lifeline basic
      tier into account in any comparison of industry average cable programming
      services tier rates.

      To create the lifeline basic tier in systems where rates were justified by cost of
      service filings, the rate will be reduced from the lower of the current rate or the
      Form 1200 rate.

      Statewide or regional equipment and installation charges that the Commission
      approves pursuant to the Social Contract will be subject to enforcement by local
      franchising authorities.  If any local franchising authority finds that Continental's
      equipment and installation rates exceed those permitted by the Commission, the
      local franchising authority may order Continental to make refunds for the excess
      charges.

      Where a local franchising authority requires Continental to upgrade a system
      beyond the capacity level that Continental had otherwise proposed in accordance
      with the Social Contract, Continental will have the right to use other mechanisms
      permitted by law or regulation to recover the additional upgrade costs.  Cost
      recovery through such mechanisms will not reduce Continental's obligation to
      invest $1.35 billion under the Social Contract.

      Rate, migrated product tier and going forward adjustments which Continental has
      implemented under the Social Contract will continue to apply to cable systems
      divested by Continental through a system sale or trade.  Other rights and
      obligations will apply only if the new owner notifies the Commission that it agrees
      to be bound by the same or similar terms and conditions as those contained in the
      Social Contract.  Continental will not be relieved of its total investment
      requirement under the Social Contract by reason of these divestures.

      Any proposed modification to or termination of the Social Contract will be placed
      on public notice and served on all local franchising authorities affected by the
      proposed modification or termination.  There will be comment and reply comment
      periods for any such modification or termination.

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

                                   -FCC-