News media Information (202) 418-0500
                                       Recorded listing of release and texts   
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FEDERAL COMMUNICATIONS COMMISSION
1919 M Street, N.W.
Washington, D.C. 20554

This is an unofficial announcement of Commission action.  Release of the full text of a Commission order constitutes official action.  See MCI v. FCC, 515 F.2d 385 (D.C.
Cir. 1974).



Report No.  CC-591                  COMMON CARRIER ACTION    November 22, 1994

                SNET AUTHORIZED TO EXPAND VIDEO DIALTONE TRIAL

     The Commission has granted the application of The Southern New England Telephone
Company (SNET) to conduct a technical and market trial of video dialtone services in several
towns in Connecticut for a period of one year.  The Commission found that SNET's proposal met
the video dialtone requirements of offering a basic common carrier platform with sufficient
capacity to serve multiple video programmers and would serve the public convenience and
necessity.

     In order to ensure that telephone ratepayers will not be adversely affected by the trial, the
Commission imposed several conditions and requirements on SNET.  For example, SNET must
establish subsidiary accounting records to capture the revenues, investments, and expenses
associated with the provision of video dialtone services and file copies of these records with the
Commission on a quarterly basis.  In the subsequent tariff review process, SNET will be required
to demonstrate that its video dialtone rates will recover all the direct costs of the market trial
(including incremental costs, plus a reasonable allocation of costs associated with shared plant),
and a reasonable allocation of overhead costs.

     The authorization permits SNET to pass no more than 150,000 homes with an advanced
hybrid fiber optic-coaxial network.  The trial will be conducted in a total of nine towns in two
different geographic areas in Connecticut: one area consists of the central Connecticut towns of
West Hartford (excluding homes already participating in a previously approved technical trial),
New Britain, Farmington and Hartford; the other area includes the southern communities of
Stamford, Norwalk, Darien, Westport and Fairfield.

     During the trial, SNET hopes to obtain a sample of approximately 20,000 subscribers for
the two areas combined.  SNET intends to charge only video programmers for video dialtone
service.  SNET will construct an advanced network that will initially offer approximately 80
analog channels and 200 digital channels in order to transport video programming for multiple,
unaffiliated video programmers.

     In addition to a basic video dialtone platform, SNET plans to offer a nonregulated video
gateway that will allow subscribers to select the video programming of their choice.   The
expanded trial will also test other enhanced and non-common carrier services.
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     FCC Chairman Reed E. Hundt praised the Commission's action, saying, "Through this and
other video dialtone authorizations, we will promote competition in the multichannel video
marketplace in a manner that is fair for consumers and fair for competing providers of
multichannel video services.  The Commission's video dialtone rules and policies have helped to
eliminate artificial barriers and disincentives to investment in our nation's telecommunications
infrastructure and have fostered trials such as this one."

     Action by the Commission November 18, 1994, by Order and Authorization (FCC 94-
297).  Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong, with Commissioner
Barrett issuing a separate statement.

     News Media contact:  Susan Lewis Sallet at (202) 418-0500.
     Common Carrier Bureau contact:  Donna N. Lampert at (202) 418-1580.


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