NEWS Report No. CS 95-21 CABLE SERVICES ACTION October 30, 1995 COMMISSION ACCEPTS FOR COMMENT A PROPOSED RESOLUTION OF CABLE RATE COMPLAINTS INVOLVING TCI COMMUNICATIONS, INC. The Commission has accepted for comment a proposed resolution of cable rate complaints involving TCI Communications, Inc., a subsidiary of Tele-Communications Inc. ("TCI"), that will, if finally adopted by the Commission, resolve nearly 2,000 pending cable television rate complaints filed since September of 1993 against TCI. The proposal provides $1.90 in refunds to all subscribers in franchise areas regulated as of September 15, 1995. Currently there are approximately 4.6 million TCI subscribers in such areas. Thus, based on current TCI subscriber totals, the aggregate refund would be approximately $8.7 million. Comments from complainants and affected local franchising authorities on the proposed resolution are due by November 29, 1995. Key elements of the proposed resolution include:  TCI agrees to credit to each subscriber in an affected franchise area an amount of $1.90.  TCI will not file any additional FCC Form 1220 cost-of-service rate justifications prior to May 15, 1996 in respect to franchise areas in which a complaint was filed prior to September 15, 1995. TCI will be able to avail itself of other mechanisms under the Commission's rules to recover costs, including abbreviated cost-of-service filings covering upgrades and incentive upgrades.  The Commission will find that TCI's cable programming service tier rates on September 15, 1995 comply with federal regulations.  Consistent with the Commission's rules for rate regulated tiers, in the future TCI will be entitled to increase its prices for its regulated tiers to include increases in external costs and inflation adjustments. (over) - 2 -  TCI may move a maximum of any four regulated services to a single migrated product tier on each of its franchises. TCI will set the initial rate for the migrated product tier at the same level, on a per channel basis, as is set for the regulated tiers. TCI may add new services to the migrated product tier and may increase the price of the tier up to $.20 plus the amount of the program license fee for each new service added.  This action does not constitute an admission by TCI of any violation, or failure to conform to, any law, rule, or policy. The proposal would resolve 1,983 rate complaints pending against TCI. Of that total, 1,370 were filed in the period September 1, 1993 to May 14, 1994, and 613 were filed from May 15, 1994 to the present. Commenting on the proposed resolution of the TCI rate complaints, Cable Services Bureau Chief Meredith J. Jones said, "This proposal resolves nearly 2,000 rate complaints involving over four and a half million subscribers. Affected consumers will receive good value in the form of refunds. I am also pleased that this proposal returns value to subscribers quickly and will allow the nation's largest multiple system operator to move forward with its business plans." Action by the Commission, October 27, 1995, by Order (FCC-95-442). Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong. - FCC - News Media contact: Morgan Broman (202) 416-0852; Cable Services Bureau contacts: William Agee and Joann Lucanik (202) 416-0800.