HomeMy WebLinkAboutIR 8064 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8064
&)-,ATE April 22, 1997
�nMN To the Mayor and Members of the City Council
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Subject: MARCUS CABLE "SHOWCASE TIER" RATE INCREASE
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Discussion:
On April 15, Marcus Cable informed the City of Foil Worth that it has filed necessary forms with
the Federal Communications Commission (FCC) to make an annual adjustment to its second tier
of service—the Showcase Tier—effective June 1 .
The Showcase Tier rate is regulated by the FCC. The City's regulatory powers are limited to the
basic service rate and equipment charges. Marcus proposed to reduce that basic rate from $12.67
to $11.94 in March, and the City agreed.
Below is the schedule of all regulated rates:
SERVICE OLD RATE NEW RATE CHANGE
BASIC SERVICE $ 12.67 $ 11.94,__�
REMOTE CONTROL RENTAL $ 0.13 $ 0.17
CONVERTER BOX RENTAL $ 2.55 $ 2.70
SERVICE CALL CHARGE $ 40.69 $ 19.03 -53%
SHOWCASE, IN AREAS OF
THE CURRENT SYSTEM $ 10.55 $ 14.01 +33%
SHOWCASE IN AREAS WHERE
SYSTEM HAS BEEN UPGRADED* $ 10.55 $ 20.49 +94%
*Marcus estimates 3,000 of its 68,000 customers have been upgraded.
Under the current federal laws, the City has no regulatory authority over the proposed Showcase
rates. However, if a citizen complains to the City about the rate increase once it has gone into
effect, the City may file a rate review request form with the FCC, which asks the FCC to review
the rates and to make a determination whether the new rates are fair and reasonable.
There is no regulation of premium service rates, such as those charged for HBO.
The numbers in the Marcus Cable letter do not include the franchise fee. The rates in the chart
above do include the franchise fee and would be the totals a subscriber would see on the cable bill.
PCIAL RECORD
0bf�er�rell CITY SECKTARY
City Manager FT, WOR'TH, H,
IRRI Wn RV THE ('1TV MANAGER FORT WORTH,TEXAS
........... . ......
.� Marcus Cable
April 14, 1997
Ms. Sue Winter
City of Fort Worth
401 West 2nd Avenue
Fort Worth, Texas 76102
Dear Ms, Winter:
Recently Marcus Cable mailed to you a copy of FCC Form 1240 which calculates the
basic cable rates for our community. As you may know, Marcus Cable has elected to
make an annual adjustment to our rates for basic cable service and the cable
programming service tier. Basic cable may be regulated by the franchising authority
while the cable programming service tier, marketed in our community as "Showcase",
may be regulated by the FCC. This year's adjustment goes into effect June 1, 1997
and is the result of our investments in new technology as well as increased operating
costs for programming, equipment, and other elements- The new basic rate will be
adjusted from $12.07 to $11.37. The new cable programming service/ Showcase rate
will be adjusted from $9.59 to $12.73 in the non-upgraded portions'of the City of Fort
Worth, In already upgraded sections of Fort Worth where customers now receive
access to almost 100 channels, the cable programming service rate will be $18.63 per
month. I estimate that as of June 1, approximately 3,000 of the 68,000 customers in
the City of Fort Worth will reside within these upgraded neighborhoods. The above
denoted rates are consistent with FCC rate regulation guidelines and are, by definition,
deemed to be fair and reasonable and reflective of prices charged in a competitive
market environment. Moreover, a comparison of Marcus rates to that charged by other
cable operators in the Metroplex, reveals that on a cost-per-channel basis, we continue
to be a leader in providing the best value in home video entertainment.
It is our strong belief that cable television service in our community remains an
exceptional value. Marcus Cable is investing over$108,000,000 in the greater Fort
Worth area over the next three years to ensure that we're improving and providing the
variety, choice, and quality of service demanded by our customers. Additionally, as
competition in telecommunications grows, we at Marcus Cable understand how
important it is to offer our customers the best value in home entertainment. We remain
committed to serving our customers' needs, improving the quality of service, and being
the preferred provider of multi-channel television in the Fort Worth community.
P.O. Box 2666 • Fort Worth, Texas 76113 - (817) 737-4731 Fax (817) 738-7472
Should you have any questions or would like to discuss any of Marcus Cable's plans for
the future, kindly give me a call.
V ry t ly your,
an ollins
Metroplex Regional Manager
�OFFICIAL RD
CITY SECRETARY
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