NEWS Report No. DC 95-136          ACTION IN DOCKET CASE        November 28, 1995

           COMMISSION PROPOSES OPTIONAL UNIFORM RATE STRUCTURE 
                       FOR MULTIPLE FRANCHISE AREAS
                            (CS DOCKET 95-174)

     The Commission has adopted a Notice of Proposed Rulemaking ("NPRM") requesting
comment on giving cable operators the option of establishing uniform rates for similar
service packages offered throughout a region.  The NPRM seeks comment on a proposed
rate methodology that would enable a cable operator to establish a uniform rate for similar
packages of programming offered in multiple franchise areas located within the same region.

     Under the Commission's current rules, cable operators subject to rate regulation must
establish rates for basic service and cable programming services tiers based on franchise-
specific data.  Thus, an operator serving multiple franchise areas in a single geographic
region generally may be required to charge different maximum permitted rates in each
franchise area, even if each area receives an identical package of programming services. 
The Commission believes that it could be beneficial to permit operators to establish uniform
rates for uniform services offered in multiple franchise areas in a single geographic region.

     The adoption of an optional rate-setting method of uniform regional rates could result
in key benefits:

         Cable operators would be able to advertise uniform rates on a regional basis,
          lowering their marketing costs.

         Cable operators would be able to better respond to competition from
          alternative providers that may market and charge for services without regard to
          franchise area boundaries.

         Consumer confusion would be reduced.

     This NPRM will explore the proper method for establishing the optional uniform rate
structure, and related issues.

     Action by the Commission November 28, 1995, by Fourteenth Notice of Proposed
Rulemaking (FCC 95-472).  Chairman Hundt, Commissioners Quello, Barrett, Ness and
Chong.
                                  - FCC -
     News Media contact: Morgan Broman (202) 416-0852; Cable Services Bureau
contact: Larry Walke (202) 416-0800.