NEWS
CS 95-25                     CABLE SERVICES ACTION                    November 13, 1995

                  PETITION FOR SPECIAL RELIEF GRANTED TO
                        INSIGHT COMMUNICATIONS CO.

     The Cable Services Bureau today issued an Order (DA 95-2334) granting a petition
for special relief filed by Insight Cable Communications Company, L.P. ("Insight").  The
petition sought a waiver of Commission rules to allow Insight to use the small system cost of
service rate methodology, despite its failure to meet the numerical requirements outlined in
the Sixth Report and Order and Eleventh Order on Reconsideration, MM Docket Nos. 92-
266 & 93-215, FCC 95-42, ("Small System Order"), 10 FCC Rcd 7393 (1995).

     On July 11, 1995, Insight, owner of 32 cable systems encompassing multiple
franchise areas, filed a petition for special relief.  The petition requested a waiver of
Commission rules so that Insight could establish regulated cable rates on behalf of its systems
in accordance with the small system cost of service methodology adopted in the Small System
Order. That methodology is available only to small systems, defined as systems of 15,000 or
fewer subscribers, that are owned by a small cable company, i.e., a company that serves no
more than 400,000 subscribers across all of its systems.  A small system is deemed owned
by a larger cable company if, among other things, the company owns more than a 20%
interest in the system.  Insight exceeds these thresholds in two respects: (1) although 29 of
the 32 systems meet the small system definition, the remaining three systems serve more than
15,000 subscribers each, and (2) all of the Insight systems are deemed owned by a cable
company that exceeds 400,000 subscribers by virtue of a 34% interest in Insight held by
Continental Cablevision, Inc. ("Continental"), a multiple system operator serving over three
million subscribers.

     In granting the waiver, the Bureau found that Insight's three systems that exceed the
small system limit are sufficiently similar to other systems found by the Commission to be in
need of rate relief based on an investigation of several relevant characteristics identified in
the Small System Order.  The Bureau also noted that none of the three systems, the largest of
which serves fewer than 18,000 subscribers, substantially exceeds the 15,000 subscriber
limit.  Separately, the Bureau determined that Continental's interest in Insight is purely
passive and that Insight and its systems enjoy no management or significant financial
advantage as a result of their affiliation with Continental.

     Under the waiver, Insight may establish rates for all of its systems in accordance with
the small system cost of service methodology.  In some instances, the waiver will extend to
small systems subsequently acquired by Insight.  In each of these respects, the Bureau found
that granting the petition was in the public interest and will further the intent of Congress to
minimize regulatory burdens for deserving smaller cable entities.

     Commenting on the Insight waiver, Cable Services Bureau Chief Meredith Jones said,
"This waiver is a good example of the flexibility of the regulatory process.  Insight clearly
has most of the characteristics of a small system operator and should be able to use the small
system rate methodology."

Action by the Chief, Cable Services Bureau, November 9, 1995, by Order (DA 95-2334).

News Media contact: Morgan Broman (202) 416-0852; Cable Services Bureau contact: 
Rodney McDonald (202) 416-0800.