NEWSReport No. DC 96-83            ACTION IN DOCKET CASE                September 3, 1996
                                    
            COMPLAINT BY MULTIMEDIA CABLEVISION, INC. AGAINST 
                 SOUTHWESTERN BELL DESIGNATED FOR HEARING
                          (CS DOCKET NO. 96-181)

       The Commission has designated for hearing a conduit attachment complaint filed by
Multimedia Cablevision, Inc. ("Multimedia") against Southwestern Bell Telephone Company
("SWB").  Multimedia's complaint alleges that SWB's conduit attachment rate in Wichita,
Kansas is unlawful under Section 224 of the Communications Act.  SWB denies that its
Wichita rate is unlawful and disputes Multimedia's application of the pole attachment formula
in calculating the maximum just and reasonable rate under Section 224.

       The case provided the Commission with its first opportunity to address specifically 
the methodology for determining conduit attachment rates.  Section 224 provides a basic
methodology for computing the maximum just and reasonable pole and conduit attachment
rates.  However, the Section does not specifically address a methodology for determining total
conduit space, conduit space occupied by a cable operator, and usable space in a conduit. 
Based on the record in this case, the Commission found that the actual portion of the duct
occupied by Multimedia is one-half or less and adopted a presumptive half-duct methodology. 
Thus, to determine the maximum just and reasonable rate per duct foot that can be charged
for cable attachments, the cost per foot of one duct must be determined and then divided by
one-half to produce a "half-duct convention."  

       The Commission directed both Multimedia and SWB to submit additional specific
information.  Once this information is provided, the Administrative Law Judge will determine
whether SWB charged Multimedia conduit attachment rates in excess of the maximum just
and reasonable rate.  
 
     Action by the Commission by Memorandum Opinion and Hearing
Designation Order, August 26, 1996, (FCC 96-362).  Chairman Hundt,
Commissioners Quello, Ness and Chong.

News Media Contact: Morgan Broman at (202) 418-2358
Cable Services Bureau Contact: Michael T. McMenamin at (202) 418-
7200

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