NEWSReport No. CS 95-12    CABLE SERVICES ACTION            August 15, 1995

     COMMISSION AFFIRMS THAT COMCAST CABLEVISION'S VALUE PAK PACKAGE
                  MAY BE TREATED AS A NEW PRODUCT TIER

     The Commission has upheld a staff decision holding that the Value Pak a la carte package
offered by Comcast Cablevision, Tallahassee, FL, as it existed on November 17, 1993, may be
treated as a new product tier under the Commission's Going Forward Order.

     On September 1, 1993, the effective date of the Commission's cable rate regulations,
Comcast removed channels from otherwise rate regulated tiers to create a new package of
channels called Value Pak. The Cable Services Bureau found that the restructuring may have had
the effect of avoiding rate regulation, but it was not clear that Value Pak was not a permissible
a la carte package. As a result, the Bureau said it would not be equitable to subject Comcast to
refund liability. The Bureau determined that Comcast may treat the package as a new product
tier under the Commission's Going Forward Order.

     The City of Tallahassee, FL argued that the Bureau's decision should be reversed.

     The Commission found no reason to change the Bureau's decision.  The Commission
noted that the Bureau's decision was consistent with the Going Forward Order, which permits
cable operators to treat existing a la carte packages as new product tiers, provided that (1) the
offering was created between April 1, 1993, and September 30, 1994, (2) it involved only a
small number of channels from basic or cable programming service tiers, and (3) the operator
had reasonable grounds to believe the collective offering complied with the Commission's
requirements as of the date it was first offered.  In this case, the Commission found that the
Value Pak package created by Comcast satisfied these criteria.

     Action by the Commission August 4, 1995, by Memorandum Opinion and Order (FCC
95-341). Chairman Hundt, Commissioners Quello, Ness and Chong, with Commissioner Barrett
concurring and issuing a statement.

                                  - FCC -

     News Media contact: Rochelle Cohen at (202) 418-0500.
     Cable Services Bureau contact: Mindy S. Littell at (202) 416-0952.