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ABSTRACT
THE DESIGN AND UTILIZATION OF A SIMULATION GAME

FOR PLANNING COMMUNITY CABLE
TELEVISION POLICY

BY

William Albert Anderson

On March 31, 1972, the Federal Communications Commission
established new rules for the further growth and development
of cable television in the United States. One of the most
important new rulings was that cable television franchises
could now be granted by communities within the top one hundred
television markets. These highly populated areas offer the
cable franchise holder a potentially lucrative market.

Since March 1972, local communities have been under
intense pressure from cable owners to grant cable television
franchises without carefully examining the long range effects
of the franchise. Local communities, who stand to be the
most affected by the failure of cable to meet its potential,
have neither the data nor analysis upon which to base their
claims in the cable television decisionmaking process.

One means by which local communities can experience the
problems of cable television decisionmaking prior to the

actual granting of a franchise is by a learning device known

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as a simulation game. This device is a learning context
where the participant responds within the simulation game as
if he were in the actual system of interaction being simu-
lated. The interaction is governed by rules similar to the
actual system and combines the competitive aspects of gaming
with the reality replication of simulation to allow the par—
ticipant a personal glimpse of how it "feels" to be in the
dynamics of the actual system.

A simulation game was systematically designed and field
tested for use with those community members interested in
developing local cable television policy. The objectives of
the game are as follows:

1. Teach participants a systematic process for deter-
mining cable television policy in their local

community.

2. Make participants aware of some of the options
available to their communities on various cable
television issues.

3. Give participants a glimpse of how it "feels"
to participate in the dynamics of determining
cable television decisions.

Participants became citizens of a hypothetical community

involved in cable television planning and were confronted

With a variety of decisions with multiple options. The goal

0f the citizens was to create the "best" possible cable policy

iflfl7 the community using group interaction. Participants were
givGfla immediate feedback on the consequences of their deci-

sion s .

,1; evaluation i

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An evaluation instrument was constructed to assess how
well the simulation met its established objectives. In the
two field test situations, participants responded positively
toward the objectives and the majority stated they felt

better equipped to enter "real world" cable decisionmakingo

in Part1

DE“E

THE DESIGN AND UTILIZATION OF A SIMULATION GAME
FOR PLANNING COMMUNITY CABLE

TELEVISION POLICY

BY

William Albert Anderson

A THESIS

Submitted to
Michigan State University
in partial fulfillment of the requirements
for the degree of

MASTER OF ARTS

Department of Television and Radio

1973

.W
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WILLIAM ALBERT ANDERSON

Copyright by

1973

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Television arr}

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“wigan State

5' '
.ne requirerte:

Accepted by the faculty of the Department of
Television and Radio, College of Communication Arts,
Michigan State University, in partial fulfillment of

the requirements for the Master of Arts degree.

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ACKNOWLEDGMENTS

Grateful appreciation is made to Dr. Thomas Baldwin
who served as the advisor for this thesis. His suggestions
and standards are appreciated now more than evero

Appreciation is also extended to Mr. Russell Sindt for
his many contributions of time and material, and to my wife,

Sherry, for her help, patience and support in completing
this effort.

 

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TABLE OF CONTENTS

LIST OF TABLES. .

LIST OF FIGURES .

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I. INTRODUCTION TO THE PROBLEM . . . . . . .

Statement of the Problem . . . . . . .
Explanation of the Treatment . . . . .
Design of the Treatment. . . . . . . .

II. CABLE TELEVISION

PLANNING EXERCISE. . . 0

Participant Instructions . . . . . . .
1:

Decision
Decision
Decision
Decision
Decision

Phase
Decision

Point
Point
Point
Point
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Organization Phase.
Examination Phase .
Legislation Phase .
Operator Selection

0 O O 0 0 O O O O O

Supervision Phase .

III. FEEDBACK AND EVALUATION DATA. . . . . . .

Evaluation Procedure . . . . . . . . .

Evaluation Results

0 O 0 O O O O O O O

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Evaluation of Feedback and Recommendations

BIBLIOGRAPHY . . o

IJST OF REFERENCES

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TABLE Page

1. A Comparison of Five Instructional Media. . . 6

2. Field Test I Evaluation of the Cable Tele-
vision Planning Exercise. . . . . . . . . . . 224

3. Field Test II Evaluation of the Cable Telee
vision Planning Exercise. . . . . . . . . . . 226

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1. Ten Setp Instruction DevelOpment Model . . . . 8

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CHAPTER I

INTRODUCTION TO THE PROBLEM

Cable television in the United States presently stands
at a threshold: a threshold of transformation from a method
of improving broadcast television reception to a genuine
telecommunications system with profound implications for our
entire society. Behind lies some twenty years of operational
experience in smaller isolated communities where television
signals were either poor or nonexistent. Ahead, because of
recent technological advancements and a Federal Communica-
tions Commission ruling, lies the harsh reality of formulating
local metropolitan cable television policy which will dew
liver as many of the "potentials" of cable television as are
technologically and economically feasible.

This thesis addresses the problem of that threshold and
the writerUS research into a possible means of assisting
netrOpolican communities in developing effective local cable

television policy. Contained in this introductory chapter

are:

l A statement of the problem

. An explanation of the treatment

2
3 The design of the treatment

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back and ewaluation of the feedback in field test situations

of the treatment°

gtatement of the Problem

On March 31, 1972, the FCC put into effect its gable

 

Television Report and Order which ended a six year freeze on
the deve10pment of cable television systems in major metro-
politan areas. "It asserted the FCC’s authority to regulate
cable develOpmenty laid down a number of firm requirements
and restrictions? and at the same time permitted considerable
latitude to communities in drawing up the terms of their
franchisesc."l It expressly encouraged communities to inno-
vate, while reserving the authority to approve or disapprove

many of their proposed actions°

Specifically the new regulations for cable systems in
the nation”s top one hundred television markets require that
the systems meet the following minimal provisions:

~Provide at least a twenty (20) channel capacity
nCapacity for two-way cable services that require
return signals from the subscriber

“Local programming (cablecasting) if the system
has more than 3500 subscribers

-A channel for educational programming

-Public access to a cable channel

-A channel for municipal services

-Channels available for lease to pay TV and other
services

Walter So Baer, Cable Television: ~"A Handbook for

Egpisionwmaking (SantaLMonicay California: Rand Corpofationy
1973)] Po iii.

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The multiple system cable television owners (called
M5033)? with their many years of cable television experience
in smaller communities, have recognized that even with the
new FCC regulations, the metrOpolitan communities offer a
potentially lucrative investment and are exerting intense
pressure on metrOpolitan communities to start issuing permits
(franchises) to construct cable television systemso Many of
these metropolitan communities lack the comprehensive knowlm
edge of a complex cable technology and have begun to issue
cable franchises without examining the long range implicam
tions of these actionso "Decisions made today will fix the
pattern of cable television for the next decades° Yet those
who stand to be most affected by the failure of cable to
meet its potential have been given neither data nor analysis
upon which to base their claims in the cable television
decisionmaking processo"2 And; unfortunately, some decisions
were made in certain communities which were later regretted°

Therefore, for those municipalities about to enter into
discussions on cable television? the writer has identified
the following problems as those which should be resolved
before the actual decisionmaking begins:

10 The identification of a systematic process for
determining local cable television decisions°

 

2Yale Review of Law and Social Action, The Cable Fable
(New Haven, Connecticut: Yale University Press, 1972), p0
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20 A knowledge of cable technology so local decision-
makers are aware of the options available to themo

30 A referent situation in negotiating with cable
operators in the dynamics of cable policy decision-
making.

The introduction of cable television to a municipal
setting brings a host of political, social, economicy legal
and technological problems along with its many advantageso
If the community has mastered the above problems before enter-
ing into decisionmaking, that community will more than likely
be able to offer its citizens a better quality cable communi_
cations system than if it sat back and simply reacted to the
requests and prOposals of operatorso The question of how to

provide local communities with these prerequisites is dealt

with in the next section of this chapter,

Explanation of the Treatment

 

One means by which local communities can master the
aforementioned knowledges and skills is by a learning device

known as simulation gamipgo It is an attempt to combine two

 

basically simple ideas:

10 Simulation: simulations are simplified realityw-
the essefiEe of physical or social systems of inter—
actionso Simulations attempt to replicate essential
aspects of reality so that reality may be understood
and/or controlledo Reality is replicated to the
degree that the simulation designer selects essential
elements from reality°

2o gaming: games are competitive interactions among
participants to achieve pre-specified goals° These
interactions may feature cooperation within groups,
but competition either among individuals or groups
distinguishes gamingo

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For local communities about to enter into cable decision-
making, a simulation game can, in a very short period of
time, provide participants with a low-risk structure of real;
ity for which they must make decisions about particular
aspects of local cable policyo Participant decisions are not
irrevocable commitments (as in the "real world") and the
simulation provides immediate feedback as to the consequences
of those decisionso After participating in a properly de-
signed simulation game dealing with the identified prerequiw
site skills and knowledges, the local community member will
have a referent situation of cable decisionmaking and will
hopefully be able to apply experiences and behaviors learned
in the game to an actual situationo
As a learning device, a simulation game offers some very
strong advantages over other alternative methodso These
advantages are summarized in Table 10
After reviewing the problems to be solved and the p03“
sible methods of solution, the writer decided to utilize the
simulation gaming methodo The simulation game provides
advantages such as economy of time, adaptability, active
learner role, and a higher learner interest over other methods
of learning° However, one crucial point must be remembered:
the game is only as successful as the designer selects the
'essential elements, from reality and applies them in a 1earn~

11R; contexto The final section of this chapter will detail

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the systematic developmental steps taken by the writer to

prepare the first prototype of the simulation game°

Design of the Treatment

Fortunately or unfortunately, depending upon one”s
point of View, there does not exist a manual on the design
of stimulation games. Several authors such as Abt, Boocock,
Glazier, Horn, Stoll, Twelker and Zuckerman have contributed
valuable research, but most admit there is no one way to
design a similation game that will meet each designeris
needs. Most of the above authors suggest following a sys-
tematic developmental process which includes the development
and field testing of a prototypeo This writer decided to
select the ten step instructional development model designed

by Vernon S° Gerlach and Donald P° Ely in their text Teaching

 

and Media, a Systematic Approach.3 Figure 1 presents their
sequential develOpmental stepso The writer will briefly
describe how the model was used to design the simulation game

contained in Chapter II of this thesis.

Step 1: Specification of Content
The analysis of the thesis problem determined the para“
meters of the game contento The problems of lack of knowledge

of a systematic process for determining cable decisions, the

 

3Vernon S. Gerlach, and Donald Po Ely, Teaching and
Media, A Systematic Approach (Englewood Cliffs, New Jersey:
Prentice Hall, Inc., 1971), p. 130

 

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lack of knowledge of cable technology, and the lack of a

referent situation in dealing with cable operators in the

dynamics of decisionmaking were identified and subsequently

became the Specified content area for the simulation game.

 

 

Step 2: Specification of Objectives

The content areas specified in gpgp l were translated

into the following objectives for the game:

A. The participants will be able to explain a system-
atic process for determining cable television
policy in their local community.

B. The participants will be introduced to some of the
options available to their communities on various
cable television issues.

C. The participants will be given a glimpse of how
it "feels" to participate in the dynamics of
determining cable television decisions.

Step 3: Measurement of Entering Behaviors

The measurement of entering behaviors for a simulation
game designed for local community members is difficult.
From personal observations and discussions with others who
have worked with community groups, it was discovered that a
wide range of abilities exist with respect to cable tele—
vision. Most, however, had at least a basic knowledge of

what cable was and how it worked, so an arbitrary decision

was made to assume that participants in the simulation game

would be able to describe to someone else how cable worked

and some of the services it could deliver.

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10

Depending upon the audience, the entry behavior could
be controlled to some degree in game situations by providing
introductary literature on cable television before the

playing sessions.

Step 4: Determination of Strategy

One of the basic tenets in constructing a simulation is
to design a selected reality that will replicate as close as
possible the actual system being simulated. Because many of
the citizens interested in local cable policy will no doubt
have a direct or indirect role in the determination of cable
policy for their community, it was decided that the closest
approximation of that reality was to design a hypothetical
municipality and have game participants make cable policy
decisions for that community. Participants are given an
introduction to important community facts such as population,
geographical features, major industries, educational resources,
present television service, etc., and are then asked.to
respond to a number of decision points utilizing the informa-
tion they are given plus community factors.

The goal of the simulation game is to achieve the "best"
possible cable television policy for the community. The
decision points are designed to represent actual problems
that may occur at various stages of cable development in the
community. In general, the simulation game follows the five

step procedure suggested by the Cable Television Information

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11

Center in their publication A Suggested Procedure: An

 

Approach to Local Authorization of Cable Television.4 Their
five steps include an organization phase, a study phase, a
legislation phase, an applicant selection phase, and a super-
vision and enforcement phase to cable decisionmaking.

Another strategy included in the simulation game was to
provide participants immediate feedback on the results of
their decision. After they had written their decision, they
were provided an explanation sheet which gave the "correct"

answer and the reasons why.

Step 5: Organization of Groups

 

One vital element of gaming is the competition among
groups. For the writer’s simulation game, participants were
divided into at least two competing groups. It was decided
for efficiency that group size should be no bigger than five
members. The groups competed against one another to see who
could score the most points; points were awarded for correct
decisions on the decision point, correct explanations of the

decision, and for group economy in purchasing consultant

reports.

Step 6: Allocation of Time

Time was allocated to replicate some of the "real world"

 

4Cable Television Information Center, A Suggested‘PrOw

Cédgre: An Approach to Local Authorization of Cable Teleu
VlSlOn (Washington, D. C.: The Urban Institute, 1973), p. 5.

 

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12

time constraints of formulating cable television policy.
Groups were given specific time limits to arrive at decisions
for the various decision points. The purpose was to make the
participants aware that they may not have all the time they
need in a "real world" situation and to force them to allo-
cate responsibility to best economize the allocated time.

Time was used in another sense in the design of the
simulation game. The writer recognized that game participants
would more than likely have demands on their time, so the game
was designed to be completed within two to three hours. This
would allow the game to be used by community groups in an

evening or by students in one or two class meetings.

Step 7: Allocation of Space

 

Space was not an essential variable in the design of the
game as long as the groups could be separated enough not to
be overheard. The groups should have a table and chairs where

they can examine the many inputs given to them on paper.

Step 8: Selection of Resources

 

In the very early stages of development, the writer ob~
tained numerous references on cable television from a variety
of sources. The aim was to analyze the positions taken on
cable television by various interest groups such as city
officials, minorities, local broadcasters, political acti-
vists, etc. A bibliography of those references used is

contained at the end of this thesis.

 

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The writer recognized, however, that these references
were incomplete. To find out exactly how cable decisions
are made, one must become involved in an actual decision-
making process. The writer was fortunate to have a friend
who was serving as city attorney for a metropolitan commun-
ity involved in cable decisionmaking. Through extensive
interviews, access to city cable files, and actual observa-
tions of community members, the writer was able to obtain a
first hand knowledge of how at least one community made its
decisions.

The combining of the procedures suggested in the litera-
ture with a real-life experience led to the development of

the decision points in the writer’s simulation game.

Step 9: Evaluation of Performance

 

At various stages of development, prototypes were tested
with students and interested community members. After work-
ing through the decision points, participants were asked to
evaluate their experiences by completing an Opinion question-
naire. Complete evaluation results are contained in Chapter

III.

Step 10: Analysis of Feedback

 

After each of the two major field tests of the game, the
results were analyzed and appropriate revisions of the proto~

type were made. These data are also contained in Chapter III.

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14

A simulation game can probably always be in a state of
revision. As it is used with each new group new ideas can
be discovered and built-in to the game design to improve
it next time. The Cable Television Planning Exercise, the
writer's simulation game shown in Chapter II, should not be
considered completedo Over time, as new regulatory developw
ments and technological advances occur? the simulation game
will no doubt be revised to provide participants with a

"real” situation to assist them in achieving the gamegs

specified objectives°

 

CABLE

CHAPTER II

CABLE TELEVISION PLANNING EXERCISE

15

16

Cable Television

Planning Exercise

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Dear Citizen:

As you know there has recently been increased interest in
the development of cable television service for the resi-
dents of the City of Belmont Springs. Several city
officials have been approached by representatives of groups
from both the public and private sectors. I believe it
would be in the best interest of the city if you and other
citizens interested in cable television would meet in the
very near future to form a plan of action for the orderly
development of cable television service for our city.
Other city officials will be participating in the process
as well, but we are most interested in citizen input.

Cable television, it is my understanding, can provide many
new municipal communications functions as well as improve
existing broadcast signals. From my discussions with other
mayors, I would suggest that our city proceed carefully,
for the decisions we make within the next few weeks and
months will determine the quality and quantity of cable
television service for our fellow residents for years to
come.

Please keep me informed of the group's efforts. I will look
forward to hearing from you in the future.

Sincerely,

Harlan L. Adams, Mayor
City of Belmont Springs

624 SOUTH CREIGHTON AVENUE
(899) 451 - 6123

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18

INSTRUCTIONS TO PARTICIPANTS

 

Introduction:

 

Welcome, you are about to participate in an exercise
which simulates some of the problems, decisions, and negoti-
ations metropolitan communities must resolve in determining
local cable television policy° These actions will be vitally
important because cable has evolved from a method for improv-
ing rural television reception to a genuine urban communica-
tions system with profound implications for our entire
society. Because of recently changed Federal Communications
Commission rules, most metrOpolitan areas have yet to con-
struct cable television systems, and there is intense pres-
sure on these cities to start issuing cable franchises without
examining the long range implications of these actions.
Decisions made today will create the structure for cable
television through the 1980's. And unfortunately, because a
generally unorganized public has had to work with a well-
organized cable television industry, some decisions were made

in certain communities which were later regretted.

Purpose of the Exercise:
The Cable Television Planning Exercise is intended to:
1. Teach participants (you) a systematic process for

determining cable television policy in your community.

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able to the
issues.

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Make participants aware of some of the options avail-
able to their communities on various cable television
issues.

Give participants a glimpse of how it "feels" to
participate in the dynamics of determining cable

television decisions.

Procedure of the Exercise:

 

1.

Before beginning the exercise, participants will
divide into two or more equally-sized groups and take
a place at one end of the room so they are away from
the other group(s). Groups will be competing against
each other, so there should be no discussion between
the groups.

The exercise will be conducted by a Game Overall
Director (G.O.D.), whose responsibility is to begin
the exercise, provide groups with necessary materials,
answer questions and interpret exercise rules. The
decisions of the G.O.D. are final and binding at all
times. When in doubt, seek the G.O.D.'s help.

Play begins when groups are given Decision Point sheets
by the G.O.D. Each sheet has a short scenario which
provides background information for the decision.
Groups are then asked to analyze the situation with

the information they have, arrive at a decision, and

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20

enter that decision on the sheet. There are time
limits on each Decision Point, so groups must Operate
efficiently.

4. During certain Decision Points, the G.O.D. will pro-
vide each group with additional input data which may
or may not be applicable to the issues being discussed.
Also, groups will have the opportunity to purchase
studies, surveys, and reports to assist them in
decision-making at various stages in the exercise.
Complete procedural details will be provided.

5. The G.O.D. will keep groups informed of the time re-
maining. At the end of the time allowed for a
Decision Point, the G.O.D. will issue Decision
Explanation Sheets which have the "right" decision
plus an explanation of the decision. This sheet will
also explain the points to be entered on the group's
scorecard.

6. At the end of each Decision Point there will be a
short debriefing session to answer any question that
may have arisen during the playing session. After the
debriefing, groups will move on to the next Decision

Point.

‘Xour Group's Objective in the Exercise:
Your group's objective during the exercise is to make

appropriate cable television policy decisions for the City of

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21

Belmont Springs. The "winning" group will be the one with the

most apprOpriate decisions.

A Word About Simulation:

 

The Cable Television Planning Exercise is a learning

device which is generally referred to as a simulation game.

 

It is an attempt to combine two basically simple ideas:

1. Simulation: simulations are simplified reality-—the

 

essence of physical or social systems of interaction.
Simulations attempt to replicate essential aspects

of reality so that reality may be better understood
and/or controlled. Reality is replicated to the
degree that the simulation designer selects essential
elements from reality.

2. Gaming: games are competitive interactions among
participants to achieve pre-specified goals. These
interactions may feature cooperation within groups,
but competition either among individuals or groups
distinguishes gaming.

For local communities about to enter into cable tele-
vision decision-making, a simulation game immerses partici-
pants into a selected low-risk structure of reality and
confronts them with problems from the "real world" for which
the participants have neither a backlog of experience or
knowledge upon which to base their actions. Participant

actions are not irrevocable commitments (as in the "real

*""-' groups a

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22

world") and the simulation provides immediate feedback as to
the consequences of those actions.

In short, the C.T.P.E. is an attempt to give local com-
munity groups a glimpse of how the "real world" of cable
television decision-making operates ahead of time in hopes
that they can transfer experiences and behaviors obtained in

the game to their actual situation.

A Word About Decision-making:

The City of Belmont Springs, the city under examination
in this exercise is, in fact, an actual metropolitan area
somewhere in the United States. This city was selected be-
cause it has demonstrated what most agree to be a model
approach to decision-making. It is, however, only one commun-
ity, and some of the specific decisions reached in this
exercise may not be directly applicable to other communities.

Unfortunately, there are few concrete "right" answers to
many of the issues involved in cable decision-making, and an
appropriate decision for one community may be the least

desirable alternative for another area.

GOOD LUCK and HAPPY PLANNING

 

COMMUNITY
PROFILE

 

 

   
 
  

Belmont Sprin
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trains in the 5"
tacit? lies in t'."
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24

GENERAL

Belmont Springs is a rapidly developing community of
100,000 population located near the foothills of the Big Range
Mountains in the south-central portion of the United States.
The city lies in the western section of the greater Norwalk
metropolitan area. The total population of Norwalk, Belmont
Springs and other surrounding communities is 1,227,529,
according to 1970 census figures.

The city's easterly boundary is adjacent to the City of
Norwalk and extends as far as 6 miles to the west while her
extreme north and south boundaries are 7.5 miles apart.
Although the official altitude of the city is 5,100 feet above
sea level, within 15 miles of the city the mountains rise to
over 10,000 feet.

Belmont Springs enjoys an annual mean temperature of 55
degrees with summer temperatures generally not exceeding the
low 90's during the day contrasted with a cool mountain breeze
at night lowering temperatures into the 60's and 70's. The
annual precipitation is 12.89 inches.

ECONOMIC

 

The city offers numerous types of economic actibity:
light industries; retail and service businesses serving the
immediate community, and warehouses serving smaller communi-
ties in the smaller surrounding areas; education services at
all levels, including the James A. Garfield Community College,
the state's largest; construction; and a growing tourist and
resort industry.

There are approximately 35,000 persons employed in the
City of Belmont Springs. The city is a relatively high income
area with a high percentage of affluent families. In 1972, 30%
of Belmont Springs families had incomes over $15,000 per year,
and 55% had incomes over $10,000 per year. Ten per cent of
the city's population, mostly urban Chicanos living in city
administrative Service Area 1, had incomes of less than $7,000
per year.

GOVERNMENT

 

Belmont Springs is a fully incorporated city utilizing
the City Manager form of government. There are seven council-
men and a mayor, who presides at all council meetings.

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25

The city has been divided into seven separate administra-
tive Service Areas in an effort to simplify the delivery of
municipal services and to be more representative of, and more
responsive to, the citizens residing within the city. The
activities of all municipal departments and federally funded
projects are planned, coordinated and administered through
this Service Area system.

The criteria used for establishing these areas were man-
made barriers, natural boundaries, neighborhoods, community
organizations, and existing agency boundaries. One of the
crucial problems in developing these infrastructures is the
lack of a local communications medium through which to involve
the residents of each particular Service Area in community
development programs.

SCHOOLS

Belmont Springs is a part of the nationally renowned
Lincoln County school system with two of the district's high
schools in the city and three others adjacent to the city
serving the students from within the city boundaries.
Achievement test scores of the public school students are
generally well above national norms.

The city is also the home of the James A. Garfield Com-
munity College, one of the state's newest and largest post-
secpndary institutions serving the greater Lincoln County area.
Other colleges are an area supported technical college and two
private colleges.

HOSPITALS

 

There are four medical hospitals in the greater Belmont
Springs area. In addition, two community health centers are
in operation at strategic locations within the city.

URBAN PROBLEMS

 

There are many urban problems which must be solved if
Belmont Springs is to remain an attractive, prosperous sub-
urban community. A significant portion of the city has been
developed within the past ten years. With that rapid growth
comes the problem of extending city services equally to all

is is true wit.
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26

Service Areas. At present, the city suffers from a lack of
an adequate public tranSportation system.

As is true with many metropolitan areas, there is an
alarming increase in the rate of drug addiction and drug re-
lated crime. Efforts to combat the problem have been
initiated, but results have been disappointing.

The city's Chicano population has become increasingly
militant over the past few years claiming that the City Planner
and other city officials are initiating a conscious effort to
drive them from the city. The Chicanos have resided in Service
Area 1 for a number of years, and Belmont Springs has grown-up
around them.

MISCELLANEOUS

 

The greater Norwalk area comprises the 35th largest tele-
vision market in the United States, and is served by three
major networks, one independent U.H.F/ channel, and one public
broadcasting (educational) channel, all of which originate
within the Norwalk city limits.

A significant geographical feature is the foothills of
the Big Range Mountains which separate the Chelsea Hills sub-
division (Service Area 7) from the rest of the city. Because
of this natural barrier, television reception is sevhrely
restricted and the residents have long been deprived of the
quality and full selection of television service available to
the rest of the city.

 

 

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TEAM INSTRUCIIONS

In order to facilitate your group's activity during the
playing sessions, you need to do two things in the next

five minutes:

 

1. Choose a group chairperson.

This chairperson will be the spokesperson for
your group. Other responsibilities include read-
ing Decision Point sheets and organizing discussion.

 

2. Choose a group recorder.

The recorder will document all team decisions,
perform messenger activities with the G.O.D., and
tally points earned on the scorecard.

DO THIS RIGHT NOW!

 

.0-

In order to facilitate your group's activity during the
playing sessions, you need to do two things in the next

five minutes:

 

1. Choose a group chairperson.

This chairperson will be the spokesperson for
your group. Other responsibilities include read—
ing Decision Point sheets and organizing discussion.

 

2. Choose a group recorder.

The recorder will document all team decisions,
perform messenger activities with the G.O.D., and
tally points earned on the scorecard.

DO THIS RIGHT NOW!

 

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The

31

DECISION POINT #1

 

Situation:

 

The first meeting of citizens interested in cable tele—

vision for Belmont Springs is presently taking place. There

are

The

for

our

eleven people at the meeting and discussion is lively.
task, as identified by Mayor Adams, is to "form a plan
the orderly deve10pment of cable television service for

city". So far, five major components in the policy

determining process have been identified:

1. Legislation Phase: the city makes and
formalizes its decisions about cable tele—
vision through the drafting and enacting of
a city ordinance.

2. Organization Phase: selecting a mechanism
to gather information on which to base cable
television decisions.

3. Operator Selection Phase: the process of
choosing who will Operate the cable tele-
vision system within the city.

4. Supervision Phase: establishing a structure
to monitor the performance of the cable
operator.

5. Examination Phase: as assessment of commun-
ity characteristics, economic implications
and regulatory options.

 

 

 

 

The problem now facing the group is deciding in what

order to place each of the five components to ensure an

orderly process.

The Task:

 

In your discussion group, decide upon the sequence of

phases which would provide Belmont Springs with the most

l
I

L
I
i
I:
n
’
L.
i

q "‘vv..-

 

::is:l'~' developmer

4

 

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...: “usrgn.
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32

orderly develOpment of cable television service. Have the

Group Recorder enter the group's decision by writing the

 

prOper sequence in the space provided.

The Decision:

 

Write the name of each phase in the proper sequence:

 

 

 

 

When this has been completed, you may request Decision

 

Explanation Sheet #1 from your G.O.D.

 

 

l. O
2. E
‘1 Y
J. i
4.(
‘ 5. '

I; YOL
5931118:

 

.
“»

33

DECISION EXPLANATION SHEET #1

 

The Decision:

 

The sequence which would probably provide the most
orderly development of cable television service for Belmont
Springs is as follows:

Organization Phase
Examination Phase
Legislation Phase
Operator Selection Phase
Supervision Phase

LJ'IDWNl-J
o o O

 

If your group had all of the above in the exact
sequence, enter points next to DecisiOn
Point #1 on your scorecard. Congratulations,
you are off to a good start. Read the explana-
tion given below.

 

 

 

 

 

 

If your group did not have the proper sequence,
enter points next to Decision Point #1 on
your scorecard. Don't worry, you will have
plenty of opportunities to override this
decision. Read carefully the explanation given
below.

 

 

 

 

The Explanation:

I The sequence given above is similar to models suggested
by both the Rand Corporation and the Cable Television
Information Center for cable television decisionmaking at
the local level. Naturally, before any legislation can take
place, city officials must have information upon which to

base their decisions. The Organization Phase provides the

 

::::e:‘1res to co

s:::'ie:1 as well
Lsszes.

u

Once these

L' ' ‘
tub Lrie lr“OL .“

3'5 Sl'Stem‘

.E§iSlati-Q:

‘H

.ESe i .

‘L‘A
u‘.‘ r‘ “
x. ‘0 Q: 86
J‘Q‘JO
1‘

:“n

34

procedures to collect information for the Examination Phase

 

(or study phase). During this phase, community wants, needs
and assets relevant to cable television are surveyed and
studied as well as an examination of major cable television
issues.

Once these two very important steps have been completed,
and the information is analyzed by city officials, a

Legislation Phase (usually in the form of a city ordinance)

 

takes place. The ordinance creates the structure for cable
television for the municipality and directly affects the next

phase in the sequence, the Operator Selection Phase. During

 

this phase, depending upon the type of ownership stipulated
in the ordinance, those responsible for Operating the system
must be selected. Once this is completed, the monitoring of
the system's performance and the enforcement of local cable

legislation is undertaken in the Supervision Phase. Each of

 

these five phases will be examined in greater detail during
the course of this exercise.

Mayor Adams was wise to suggest that the city government
take the initiative in the development of cable policy, rather
than reacting to the prOposals of others. The Federal Com-
munications Commission (FCC) has adopted a set of rules which
creates general legislation for the further growth and
development of cable television, but it has left the most

vital decisions up to the local communities. These decisions,

se they im‘o

_:c'.i:i:al arena.

gelizical power t
:::ep:esent the
grate interest:

:zzcsmercial gr

35

because they involve the distribution (or redistribution) of
economic and political power, toss cable television into the
political arena. In dealing with the issues of money and
political power that surround cable, some people may claim

to represent the 'public interest' while serving their own
private interests. This can be as true for those representing

noncommercial groups as for businessmen or public officials.

 

At the ne:
icrcilsan Geo:
s;;;::t a syst
Sa;:.::t Spins;
:esticns of t':

table televis:

In diSCu:

~.ty Statis.
~40!
or:-

36

DECISION POINT #2

 

The Situation:

At the next meeting of the Belmont Springs City Council,
Councilman George Brandt moved that the City financially
support a systematic process to bring cable television to
Belmont Springs. Earlier Mr. Brandt had reviewed the sug-
gestions of the informal group of residents interested in
cable television.

In discussion on the matter, there were different points
of View on the best way to implement the five step process.
One councilman suggested forming a city government cable
committee, composed of the city manager, city attorney, city
planner, and the city engineer. Another councilman suggested
appointing a delegated citizen group to conduct the process,
and still another councilman suggested hiring professional
cable consultants to do the work.

The councilman suggesting a city government committee
said there would be advantages of economy, professional
expertise, familiarity with city procedures, and access to
city statistical data. Those opposing this alternative stated
they feared the possibility of an "in-house study", sub-
ordinating citizen input; also, some councilmen doubted
whether the city officials would have the time necessary to
conduct the exhaustive process. The problem of citizen

suspicion of corrupt practices was also mentioned.

 

The council

.3: because cit

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sen-.e: they 5

£73395! rate S

2;: aided that

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2::ittee may
Terms issues
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Professi
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and that th«

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37

The councilman supporting a delegated citizen group said
that because citizens are to be the major recipients of cable
service, they should play an active role in determining the
services, rates, etc., they are to receive. Another council-
man added that citizen participation could increase community
interest in cable, and ultimately increase the success of the
system. The Opposition stated that a citizen“s group, while
long on interest, may be short on expertise. A citizen“s
committee may also have such a divergence of opinions on
various issues that no concensus will be reached, thus slow-
ing or jeOpardizing cable television service.

Professional cable television consultants offer the
advantages of having a wide variety of experiences in complex
cable issues in different communities and knowing the best
procedures to obtain information and how to translate that
information into action policy. Their expertise may provide
the city with a better-designed system, and save the city
valuable time and money in the process. A councilman Opposed
to this approach charged that consultants may be too eXpensive
and that they are not familiar with the community.

Someone suggested a compromise of utilizing all three
groups, but it was decided that one should be chosen to provide
overall guidance in the process, and then possibly utilize

the other two at certain stages in the decisionmaking process.

 

)7

III your O]. Si

ave attributes .

:::';:s: 1. City
2:2;zen‘s group,

grape in ac cepf

camera bv ran

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38

The Task:

 

In your discussion group, analyze the positive and nega-
tive attributes of each of the three proposed implementing
groups: 1. city government cable committee, 2. delegated
citizen's group, and 3. cable consultants. Rank the three
groups in acceptability; 1 (one) most acceptable to 3 (three)

least acceptable. Have the Group Recorder enter the group's

 

decision by ranking the alternatives in the space provided

below.

The Decision:

Rank Implementing Group Name

 

 

 

 

When this has been completed, you may request Decision

 

Explanation Sheet #2 from your G.O.D.

 

 

The ranki:
_:::;.i‘;:tive at

recess for Be

[7%

enter
i your 57
given '
reaSQn

    

 

39

DECISION EXPLANATION SHEET #2

 

The Decision:

 

The ranking of groups which would probably be the most
productive at implementing a cable television decisionmaking

process for Belmont Springs is as follows:

 

 

 

 

 

 

Rank Implementing Group Name

1 Delegated Citizen Group

2 Cable Consultants

3 City Government Cable Committee
If your group ranked all of the above correctly,
enter points next to Decision Point #2 on
your scorecard. (Good show!) Read the explanation
given below to be sure you did so for the right
reasons.

 

 

 

 

If your group ranked Number 1 correctly, but in-
verted Numbers 2 and 3, enter points next to
Decision Point #2 on your scorecard. If you had
any combination other than those given above, enter
0 points on the scorecard. Read carefully the
explanation of the rankings given below.

 

 

 

 

 

 

 

The Explanation:

Delegated Citizen Group:

 

As cable television enters major urban markets, such as
Belmont Springs, it now must offer more services than the
traditional improvement Of television reception for its
subscribers. The F.C.C. has ruled that a system to be built
in Belmont Springs (a part of the 35th largest television

market) must provide:

1. At
2. Th:
3. A-
4. A“.

'U
H

These new
effects on rest
:11: Belmont E

-.‘.‘. be the Lil
mess. This
55'~'910?r.er.t of
l1: their neigh
‘4?“ serviCeS t

EaCh COIT;
CitiZEn Parti.
bit {Rest Of t'

m SUQ‘EES

40

At least twenty channels

Three access channels for local use

A two-way capacity

And when the system has 3,500 subscribers, local
programming "to a significant extent."

udeNH
o 0

These new services could have potentially far-reaching
effects on restructuring the social communication process in
urban Belmont Springs. And because Belmont Springs citizens
will be the ultimate recipients Of these new services, they
no doubt will and should demand a voice in the decisionmaking
process. This means they will keep a watchful eye on the
development of any cable system in their city and especially
in their neighborhoods. They will press for assurance that
the services they want are provided.

Each community must choose how it will best maximize
citizen participation (based on its own unique situation),
but most of the literature on cable television decision-
making suggests delegating decisionmaking to a citizen group.
Delegated groups are citizen groups that have been given
specific authority by municipal officials to make independent
assessments during the planning process, to Speak on certain
subjects in franchise negotiations, and to monitor the cable
system in its construction and operation.

The delegated citizen group may call upon both municipal
officials and professional consultants at various stages of
their work, but it is they (as recipients) who should plan
the services they are to receive. Such citizen participation

offers many beneficial results to the city:

 

:
Eccncen us 0 -

139 'w‘eaknes se 5

312:3 Col-15111125
\

Cable te:
Iii-3e in the <
hilt they ShOu

Log the exltir

41

1. Participation by citizens could increase
interest in cable television and potentially
enlarge the subscriber base.

2. Participation could improve the services
Offered to the community by cable television.

3. Participation could enable minority groups to
voice their needs in the development of cable
services.

4. Participation could relieve citizen suspicion
of backroom arrangements between city officials
and the cable entrepreneur.

The delegated citizen group approach may take longer to reach
a concensus of opinion, but the overall strengths outweigh

the weaknesses.

Cable Consultants:

 

Cable television consultants can provide valuable assis-
tance in the cable decisionmaking process for Belmont Springs,
but they should not have sole responsibility for administer-
ing the entire five step process. Consultants can relate
their eXperiences in other communities and from their study,
but it is the local citizens who understand their community
best. Basic guidelines can be stated simply: use consultants
to provide information, to explore and evaluate alternatives,
and to make policy recommendations, but not to make policy

decisions. The client city or county cannot transfer its

 

decisionmaking responsibility to the consultant, and it should

not try to do so. The client can, however, use consultants'

advice and information to arrive at more reasonable decisions.
Professional consultants must be paid for their services,

and the fees can be quite high. Average rates run $100 to

 

5221a da' Plus

‘

~-=-’: normal bi.

-Av-

15.671510!) CORE

eazh franchise
'21: even a fee

ashsa

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Iit': Governxer

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iecisionmakin;
§ests this al-

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“arms of a
.8:
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42

$200 a day plus travel. Local governments often find that
their normal budgets have no provision for hiring cable
television consultants during the franchising process. One
possibility is to insist on a substantial filing fee from
each franchise applicant to pay for consultant assistance,
but even a fee of several thousand dollars may not cover

costs.

City Government Cable Committee:

 

Of the three alternatives for implementing a cable
decisionmaking process, most of the current literature sug-
gests this alternative as the least desirable. Unfortunately,
there have been some well—publicized incidents involving the
under-the-table payment of money or other favors by potential
cable Operators to the city officials responsible for the
awarding of a cable television franchise. While these inci-
dents may be few, they have cast suSpicion on attempts by
city Officials to make cable decisions without citizen
involvement. Again, because it is the citizens who will be
the recipients of cable television service, they must have a
voice in deciding the services they are to receive.

City officials, because of the expertise they hold in
legal, administration, and technical matters, will play a
vital role in determining cable television service for Belmont
Springs, but they should not have sole responsibility for

decisionmaking.

 

r

“a Situation:

 

After a it
broilran Bra
‘31:; cable te
:izizen group
‘15 the 92:53;
:5 seven Citi:

R A ‘
HmG. filer—Der:

\- ‘

 

 

43

DECISION POINT #3

 

The Situation:

 

After a lengthy debate, the city council took action on
Councilman Brandt's motion to fund a systematic process to
bring cable television to Belmont Springs. The delegated
citizen group approach will be used; the group will be known

as the Cable Organizing_Group (C.O.G.), and will be composed

 

of seven citizens from all elements of the community. The
C.O.G. members approved by the city council are:

1. Ms. Joan Warren--housewife, League Of Women
Voters member

2. Mr. David Blake--TV Coordinator, Belmont Springs
School District

3. Mr. Juan Parral--National Mexican American Anti-
Defamation Committee, Inc.

4. Mr. Larry Johnson—-businessman, Chamber of
Commerce member

5. Mr. Philip Gault--Administrative Assistant,
Office of the City Manager

6. Ms. Lillian Lund--Continuing Education Service,
Garfield Community College

7. Mr. John Ewing--Training Director, Lincoln County
General Hospital

The budget approved by the council was smaller than requested,
$2,000 for the remainder of this fiscal year. Of that amount,
up to $1,000 may be spent for private consultants, surveys,

etc.

 

Have the G.O.D. issue your group $1,000 in cash for
use during the remainder of the exercise. Your group
will have different Opportunities to purchase surveys,
and consultant's reports for varying prices to assist
your group in decisionmaking. Economy counts too;
unused funds will give your group bonus points at the
end of the exercise.

 

 

 

 

0.3. has 3‘91"
:rccess discus

:5: been es tab

I

"'e Orzaniz at:
-.

 

Certain «
33 the liter

zabers have

331§ieted the
zoniuct a CO:
Current SOCi
tieresz; in
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V.

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44

C.O.G. has agreed to follow the five step decisionmaking

process discussed in Decision Point #1. Now that a group

 

has been established and funded, the C.O.G. has completed

the Organization Phase and is now ready to proceed to the

 

Examination Phase.

 

Certain group members have been writing for and review-
ing the literature on cable television while other C.O.G.
members have been visiting nearby communities that have
completed the cable television decisionmaking process.
Ms. Lund suggested that the first action of C.O.G. be to
conduct a community survey of Belmont Springs to determine
current socio-economic trends in the community, current
interest in television in general and cable television serv-
ices in particular. Ms. Lund and Ms. Warren agreed to design
the survey and to train students from G.C.C° to conduct the

survey.

 

This task has now been completed, the survey taken,
and the report written. The overall cost was $300.
Pay this amount to the G.O.D. and receive the final
report. (Sorry, no choice this time.)

 

 

 

The C.O.G. reviewed the survey report and found it to
provide them with valuable information to be used in the
further study of cable television for Belmont Springs. Of

the wide range of issues to be studied during the Examination

 

Phase, the C.O.G. decided to break into smaller subcommittees

to examine four major cable issues first, then turn to some

 

::' fine other iSE

i
1. Cali~
2. a:
3. a:
4. Ca"

Your group
able s'sster. 0'»
:i:‘;. Examine
the other ;

33!! decision.

(1"
h
)

3 .Q to study :

'Jlsmn consulta

:‘i. M
tags on cal

 

Lie cost of th
YOu haVe

the Group Re co

45

of the other issues. The four issues to be examined first

are:
1. Cable System Ownership
2. Cable Subscription Fees
3. Cable System Design and Geography
4. Cable Services

The Task:

 

Your group will now study one Of the above issues,
cable system ownership, and make a recommendation to the

city. Examine the materials on ownership in the Study_Packet

 

and the other information you will be given to assist you in
your decision. Organize your group any way you wish and pro-
ceed to study the issue and arrive at a group decision.

NOTE; -Cohen and Associates, professional cable tele-
vision consultants, can provide you with a report of their
findings on cable system ownership for Belmont Springs.

The cost of this report is ELOO. You may pay the G.O.D.
the amount and receive the consultant's report.

You have minutes to complete your study and have

the Group Recorder fill in the information requested below.

The Decision:

 

Complete the following:

1. Based upon our examination of the issues per-
taining to cable system ownership, the Cable
Organizing Group (C.O.G.) recommends that the
City of Belmont Springs adopt

ownership.

 

 

 

W"
..€n
thi
G

LK‘
“a~"

A0,

‘ hi

46

2. The reasoning for our recommendation is as
follows:

 

 

 

 

 

(use the back if_needed)

When this has been completed, you may request Decision

 

Explanation Sheet #3 from your G.O.D.

 

 

 

CAB”

BEL

 

47

CABLE TELEVISION
Fan
BELMONT SPRINGS

........nuHHIII IIIIIII I)

J

 

A COMMUNITY STUDY BY THE
CABLE ORGANIZING GROUP

 

log-Am? A.

C
1. Length 0 -
*

The medi
4.5 yea:
very sir
example
that thq

48

SECTION I: DEMOGRAPHIC CHARACTERISTICS OF BELMONT SPRINGS

1. Length of residence

 

. The median length of residence at the same address was
4.5 years. The residence patterns for the sample were
very similar to those reported in the 1970 Census. For
example, 56 percent of the survey reSpondents indicated
that they had lived at their present residence five
years or less, compared with a figure of 61 percent who
reported similar residence patterns in the 1970 Census.

2. Sex and marital status

 

. The number of males and females in the sample were
nearly identical.

. Over 80 percent of the respondents were married, 10 per-
cent single, and the remaining eight percent were either
widowed or divorced.

3. Number of children per household

 

. The households surveyed contained an average of 1.4
children, with the distribution being nearly equal
between four broad age categories as follows:

Age Group Mean Number of Children

1-5 years

6-10 years
11-15 years
16-20 years

0000
nbwhw

 

4. Age of respondent

 

. The median age of 36.6 years among survey respondents
was nearly identical to the median age of Belmont Springs
residents over the age of 20, as reported in the 1970
Census (36.8 years). One-third of the respondents were
in the age range 35-49. Only six percent of the indi-
viduals were 65 and older.

5. Level of education

 

. The educational level of the present sample was somewhat
higher than that reported for Belmont Springs residents

 

1n the 19
of the re
or more,

soondents
attainnen

 

. See As: e:
*

graphic <

49

in the 1970 Census. In the latter instance, 76 percent
of the residents had completed four years of high school
or more, compared with 86 percent of the survey re—
spondents who had reached that level of educational

attainment.
6. Additional Demographic Characteristics

. See Appendix A for a more detailed examination of demo—
graphic data.

 

 

uring a I
Egrincs were p-
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“II. ity Coll
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each sarple b]
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on which the
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ca. entac:‘es
a:.t}ages in
s ers to

50

SECTION II: SURVEY PROCEDURE

During a one week period 304 adult residents of Belmont
Springs were personally interviewed concerning their tele-
vision habits and preferences. An eight page questionnaire
was utilized. All interviews were conducted by Garfield
Community College students, trained in the administration of
the questionnaire.

Within the city limits of Belmont Springs, 102 residen-
tial blocks were randomly selected. Three dwelling units on
each sample block were randomly designated, with alternate
residences designated in the event of refusals, no one at
home, etc. Only adult residents (i.e., age 18 or older) were
interviewed. Interviewing was conducted during the evening
as well as during the day, in order to insure a nearly equal
proportion of men and women.

As interviews were completed, they were coded and key-
punched on standard IBM cards. The data were then tabulated
and cross-tabulated, utilizing a Control Data 6000 Series
computer system at Garfield Community College.

Assuming 24,000 households in Belmont Springs, the
sample of 304 households provides an error margin of approxi-
mately : six percent of the 95 percent confidence level (i.e.,
95 times in 100 the obtained sample value will deviate from
the true population value by no more than six percent). For
small subgroups (e.g., age, viewing categories) the margin
of error is substantially greater and caution should be
exercised in placing undue emphasis on small percentage dif-
ferences in those instances.

Interpretation of Tables

The analysis of the survey data comprises four sections.
Within each section the text is followed by the tabular data
on which the analysis is based.

In every table the column headed "Total" contains the
percentages pased on all 304 respondents. Where the per-
centages in a column total to more than 100 percent, multiple
answers to a question have been tabulated.

P“ A)
(D

(I)

.n. 'U
C)

:3

(D

H 12 -
C) (D (D t1

(n ("f (L

I- () I

0.. :J‘ ()

(D (D 91 A

:1 CL rf L)-

r'f m

.3

’1

kin
amount c
differer
Viewing
hours a
mount (
income.

((2

 

Ox)

«~1in; '

' TEIEVIS
Week an:

Mo.

Af

51

SECTION III: PRESENT TELEVISION VIEWING HABITS

1. Amount of time spent watching television

 

. Respondents were asked to fill in a weekly schedule and
indicate the time periods during which they usually
watched television. It was found that Belmont Springs
residents spent an average of 39.9 hours a week--a full
working week equivalent~-watching television. The
amount of viewing varied.markedly by age; 25-Under: no
difference from group as whole; 24-34: least,amount of
viewing time (34.5 hours per week); 65-older: over 50
hours a week. There were no discernible patterns in
amount of viewing when analyzed by either education or
income.

2. Television time_preferences

 

. Television viewing peaked in the evenings early in the
week and showed a steady decrease from that point on:

Monday evenings: 95%
Saturday evenings: 71%
Afternoon viewing: 43%
Morning viewing: 30%
Saturday morning: 14%

. Individuals were also queried with regard to the time
period at which they would watch television, provided
better programming were available. The greatest demand
(10 percent) was for better programming between 2:00
and 5:00 p.m. and between 7:00 and 10:00 p.m. Better
programming in the latter time period was most vocifer-
ously recommended by individuals in the 25-34 age group,
while 20 percent of the respondents aged 50-64 stated
that they would watch more television between 2:00 and
5:00 p.m., provided suitable programs were available.

3. ProgramOpreferences

 

. Respondents were asked to list their five favorite telem
vision programs. Those programs were then classified by
type and the viewers categorized as either moderate,
frequent, or fanatic, based upon time spent watching
television. Overall, the most frequently mentioned pro-
gram types were as follows:

 

reacted 1'
cent who
That dis:
viewers,
tolerance
able to t
ill]. to re

52

l. Detective dramas 45%
2. News programs 45%
3. Situation comedies 43%
4. Variety shows 31%
5. Sports programs 28%
6. Movies 24%

4. Reaction to television commercials

. Response to television commercials was negative in the
majority of cases. Only 10 percent of the respondents
reacted favorably to commercials, compared with 52 per-
cent who indicated a dislike for television commercials.
That distaste was most pronounced among the "light"
viewers, with "moderate" viewers indicating the most
tolerance for commercials. Commercials were most accept-
able to the youngest individuals and were most distaste~
ful to reSpondents in the oldest age category.

 

SECTION I

“MLFE
‘91’3’ lI‘t
Fairl J 1
‘0 inter

SECTION IV:

53

THROUGH CABLE TV

INTEREST IN TYPES OF PROGRAMS POSSIBLE

 

 

Amount of Viewing

 

 

 

 

 

 

 

 

 

Total Light Moderate Heavy
Local Belmont Springs News
Very interested 39.8% 42.3% 40.6% 38.6%
Fairly interested 42.8 40.4 45.3 42.1
No interest 15.8 17.3 13.2 16.6
Donut know 1.6 0.0 0.9 2.8
Coverage of City_Government
Meetings
Very interested 38.5 48.1 42.5 32.4
Fairly interested 36.8 30.8 36.8 39.2
NO interest 24.3 21.2 19.8 28.3
Don"t know 0.3 0.0 0.9 0.0
Programs by Local Students,
9.29
Very interested 33.6 30.8 41.5 29.0
Fairly interested 44.7 44.2 42.5 46.2
NO interest 19.7 19.2 16.0 22.0
Don't know 1.6 3.8 0.0 2.1
No answer 0.3 1.9 0.0 0.0
Local School Sporting EVQQER
Very interested ”WJE’ 36.2 19.2 42.5 37.2
Fairly interested 37.5 48.1 35.8 35.2
No interest 26.3 32.7 21.7 27.6
Don"t know 0.0 0.0 0.0 0.0
Feature Films
Very interested 39.1 23.1 36.8 46.9
Fairly interested 31.3 34.6 32.1 29.0
NO interest 28.6 40.4 30.2 23.4
Don°t know 1.0 1.9 0.9 0.7
Local Educational TV
Very'interested 50.0 53.8 56.6 43.4
Fairly interested 25.0 21.2 22.6 28.3
No interest 22.4 25.0 18.9 24.1
Don't know 2.6 0.0 0.9 4.1

continued

SECTION IV--continued

54

 

 

Amount of Viewing

 

 

 

 

 

 

Total Light Moderate HeaVy
TV for Pre-School Children
Very interested 43.8% 42.3% 28.1% 40.7%
Fairly interested 19.4 23.1 17.0 20.0
No interest 34.9 32.7 33.0 37.2
Don't know 2.0 1.9 1.9 2.1
Sports Programs
Very interested 24.7 15.4 28.3 25.5
Fairly interested 20.4 9.6 21.7 23.4
No interest 53.0 73.1 48.1 49.7
Don‘t know 1.0 1.9 0.9 0.7
NO answer 1.0 0.0 0.9 0.7
Short Films
Very interested 44.7 51.9 46.2 40.7
Fairly interested 32.9 25.0 31.1 37.2
No interest 22.0 23.1 22.6 21.4
Don°t know 0.3 0.0 0.0 0.7
Public Access Channel
Very interested 29.3 26.9 28.3 30.3
Fairly interested 25.7 21.2 24.5 28.3
No interest 42.4 48.1 45.3 38.6
Don’t know 2.6 3.8 1.9 2.8

 

55

SECTION V: SUMMARY AND CONCLUSIONS

The survey results concerning present television viewing
habits and attitudes towards television programming appear to
point to Belmont Springs as an excellent milieu for cable
television. A series of findings, when considered concurrent-
1y, resulted in that conclusion.

1.

5.

Television, for Belmont Springs residents, represents
a major form of entertainment. The average Belmont
Springs resident Spends 40 hours a week watching tele~
vision, a figure which is 25 percent higher than the
national average.

Both color television set and FM set penetration is
high in Belmont Springs (approximately 70 percent in
each instance). In other words, residents have made
a substantial investment in those two media and ex~
pectations for high quality reception should be
rather high.

Two out of every 15 television stations received by
Belmont Springs residents have either fair or poor
reception. Many of those reception problems are
related to the independent U.H.F. channel.

At least 41 percent of the residents presently en-
counter some kind of television reception problem,
with the occurrence of shadows being most prevalent.
One-third of the individuals have attempted to im=
prove reception by purchasing or repairing special
types of antennas. However, the survey provided
evidence that such corrective action has not been
effective in reducing or eliminating those problems.

One out of every eight FM set owners report only fair
or poor reception of FM signals.

Assuming then that somewhere between 13 and 20 percent
of the homes in Belmont Springs have experienced either tele-
vision or FM reception problems, it would appear that a minim
munlof 3,000, and a maximum of 5,000, Belmont Springs homes
might benefit visibly from the introduction of cable tele-

vision.

In addition to the present reception problems encountered
by Belmont Springs residents, there was a high demand for the

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56

types of programs generally associated with cable television.
For example, the following program categories were generally
enthusiastically received.

1. Children's programs

2. Television for pre-school children

3. Locally produced educational television

. Cancelled network programs

Travel programs

Programs featuring instruction in handicrafts,
etc.

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Also, three-fourths of all of the respondents showed some
interest in such programs as local Belmont Springs news,
coverage of city government meetings, and programs produced

by, and featuring, local students. A majority of the survey
respondents indicated some interest in a public access channel,
with 28 percent of all individuals anticipating using it at
some time.

57

 

 

 

 

 

 

 

 

 

 

 

 

 

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58

System Ownership
Study Packet

 

 

 

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BACKGROUND INFORMATION

 

The C.O.G. subcommittee studying the Options of cable
system ownership must decide whether the cable system in
Belmont Springs will follow the standard pattern of being
franchised to a private owner or whether another form of
ownership would be more beneficial. Other common ownership
options include city ownership and ownership by a nonaprofit
organization.

Of the communities near Belmont Springs that have com-
pleted cable franchising agreements, three of the four fran-
chises have gone to Mountain Communications Incorporated
(M.C.I.), a multiple system owner located in Norwalk. The
other franchise was awarded to Monroe Video, an out-of-state
multiple system owner. In Bellvue, one of the communities
to award its franchise to M.C.I., the Chicano population has
asked the F.C.C. to refuse to grant a Certificate of Comm
pliance for the system, claiming their proposal to construct
and Operate a separate Chicano-owned cable system to serve
their portion of the city was never given consideration in
the franchisee selection process.

Also, the City Of Norwalk is about to release the re~

sults of a year long study on cable television for Norwalk.

According to the Norwalk Daily_News, the study will recommend

 

a municipally owned system for this major metropolitan area.

 

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60

In Belmont Springs, there has been a great deal of inter—
est in the issue of cable system ownership. As mentioned
earlier, private cable companies have approached city offi—
cials attempting to expediate the franchising process.
Informal discussions within the C.O.G. reveal that the members
are divided on municipal ownership; the representative from
the city manager's office states that he does not believe
councilmen will be willing to enter the high risk financing
of cable television, while others see municipal ownership as
a way to lower subscriber rates. The possibility of non-
commercial ownership has been proposed, but as of yet, no
means of financing the estimated $3,000,000 needed for a

noncommercial effort has been arranged.

 

 

61

ALTERNATIVE: Private Ownership

 

If the cable television system in Belmont Springs is to
be Operated by a private owner, it will more than likely be
a local company affiliated with a large multiple system
owner (M.S.O.). Typically, a cable M.S.O. seeking a commun—
ity franchise will form a local company to submit its appliw
cation. Influential local residents will be invited to buy
shares in the local companymmusually 10 to 20 percent-~but
the M.S.O. will retain majority control. There are several

advantages and disadvantages to having private ownership.

ADVANTAGES

 

1. Ability to raise capital

M.S.O.'s, because of their size, rate of return on the
investment, and experience, are able to obtain large loans
from banks and insurance companies to construct large
metropolitan cable systems. Financiers find it more profit-
able to make one large loan rather than several smaller
loans, so M.S.O.'s seeking tens of millions of dollars to
construct several systems, are looked upon very favorably.

Also, no privately owned cable system has ever gone broke.

2. Management Experience

 

Because most M.S.O.'s Operate several systems across

the United States, they have the advantage of several years

 

62

of cable management experience. The private owner will be
able to operate an effective, efficient cable system.
Most M.S.O.'s have their own training programs to improve

the performance of system management personnel.

Research Capability
A private owner affiliated with an M.S.O. will have
access to or the ability to do research in the area of new

cable services as a means of increasing their potential

subscriber base.

Programming Resources

A M.S.O. generally has a large television programming
library which it has developed from outstanding programs
from its other cable operations. Other forms of ownership

may not be able to commit equivalent resources for pro-

gramming.

DISADVANTAGES

1.

Profit Seeking

A private owner will construct a cable system to make
money. Conflict generally arises as to how much money
should go to the operator as profit and how much should

stay to further develop the cable system.

rm.--

 

 

2.

63

Cross Ownership

The F.C.C° has banned cable system ownership by broad-
cast television stations in the same community, by tele-
vision networks, and by telephone companies in their

service areas, Inn: does not prohibit cable ownership by

newspapers and radio stations.

 

' Local Control

If the cable owner is an M.S.O., there may be a prob-
lem of loss of local control; that decisionmaking with
regard to local operating policies and public access pro-
gramming will be made by corporate Officers and imposed

upon the local community.

 

64

ALTERNATIVE: City Ownership

 

Examples of cable systems owned by the city are few:
at the present there are eighteen municipally owned cable
systems, most of them in small towns, and many of them
established during the early days of cable when municipali-
ties took an active interest in bringing broadcast television
reception to their residents. Municipal ownership continues
to be of interest in certain smaller towns and cities, but
recently it has been increasingly discussed as an ownership

alternative in major urban centers.

ADVANTAGES

 

1. Lower rates

Because the city can divert excess revenues from the
cable system to uses other than profits for an external
owner, a portion of the revenues can be used to lower
monthly subscription rates. Also, public financing would
entail lower interest rates for borrowing of money to con~
struct the system, which would have impact on the level of
subscribers8 fees and the amounts of money that would be

available for support of public uses of the system.

2. No profit skimming
It must be remembered that privately owned cable sys-

tems are Operated for a profit. Without proper city

 

65

regulation, a private owner may depreciate the cable sys—
tem for tax purposes over a period of five years, while
most new cable systems have a technological life of at
least ten years. The private owner can obtain a large
profit in this manner without investing new capital to up-
date and rejuvenate the aging system. Under city ownership,
however, a portion of the profits could be diverted to keep
the system at "the state of the art" and provide the

capability to deliver new cable services.

3. Local interest

 

A city owned system allows direct control of subscriber
rates and the types and levels of service to be provided in
the interest of its subscribers. Services, such as fire
and burglar alarms, meter reading, transportation service
schedules, traffic control, community education, and cul-
tural activities could be provided as an extension of

existing municipal functions.

DISADVANTAGES

 

l° Lack of managerial ability
Many of the M.S.O."s have questioned the city‘s lack
of technical and managerial expertise to run such a public
service enterprise correctly, efficiently, or imaginatively.
Most cities do not have any existing structure to Operate

a cable system.

 

2.

66

Financial venture

 

Because of the large capital investment required to
construct the cable system, the relatively long pay-back
period, and the lack of data on the success of a municipal
system in large metropolitan areas, the city may be un-
willing to incur a debt in the millions of dollars to pro-
vide what some consider to be a "luxury" as opposed to

other municipal services.

Control of communications

When only one franchise is granted to serve a munici-
pality, the owner becomes a monopolist. When the owner is
the city, certain questions are raised about possible
control of system by the city. It is not unusual for local
governments to avoid actions that clearly enhance Black
development on the basis of 'reverse discrimination' claims.
Civil libertarians also claim that city ownership could

bring with it city control of content.

 

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67

ALTERNATIVE: Noncommercial Ownership

 

The ownership of a cable television system by a nonprofit
group or institution constitutes another possible alternative.
The noncommercial applicant would face the same responsibili-
ties of raising capital, constructing and Operating the cable
system as would a private cable applicant.

The basic difference between nonprofit and commer-
cial franchises is that the nonprofit franchisee will
not be required to return a profit to stockholders.
Revenues in excess of operating expenses, amortization,
and interest can be funneled into additional community
programming and services that provide the quickest re-
turn on capital, the nonprofit owner should be more
willing to experiment with nethechnology, to provide
services of interested or marginal profitability, and
to serve low-income areas where potential subscriber
interest may be less certain.1
Using the noncommercial group as the basic structure,

there are several variants of this form of ownership. One of
the most promising forms is a joint venture between profit
and non-profit groups. The profitwmaking arm can generate
capital, utilize the market for business services, and run a

businesslike organization while the non-profit arm can share

in the revenues, and provide varied programming.

ADVANTAGES
1. Local interest

Because the bid for ownership was initiated by a

 

1Ford Foundation, Comments in Response to Commission's
Notice of PrOposed Rulemaking, New York (December 7, 1970),
p. I2.

.P s——_- ._L__

 

68

locally formed consortium or institution, a high degree of
interest in servicing the community could come about.
Those managing the system would probably be people who

knew community interests and problems.

Lower rates

 

As with city ownership, when the franchisee is a true
non-profit group, excess revenues would go back into the
system to develop new services and to lower rates to sub-

scribers.

Community control

 

Ownership by a community based group could relieve
problems of content control that might be experienced with

a private for profit owner or a municipal owner.

 

DISADVANTAGES
1. Financing

Obtaining capital to construct a cable system under
this form of ownership could be a formidable problem.
Some noncommercial community groups have been unstable in
nature, a factor which longmrange investors view with
suspicion. Also, return on the investment would be lower
than usual; another factor which may discourage private
investors. Foundation grants might be available where

there is strong leadership for a community-based system,

 

69

but foundations are naturally reluctant to make more than

a very few such commitments.

Managerial ability

 

Because a community noncommercial owner would not
have the resources of a private owner or a municipal
owner, it may be very difficult to hire and train compea
tent staff to manage the cable system. There are too many
programming and technical problems not to make success
difficult for a manager who has to teach himself the whole

discipline of electronic communication as he goes along.

Operational structure

 

A community noncommercial group may have problems in
establishing an effective administrative structure within
the limitations imposed by the city franchise. Minority
groups and the poor, in particular, are unlikely to assume
that their interests will be well served merely because
the franchise holder is a nonprofit instead of a commercial

organization.

 

70

NQDIRIIIAEIK IRAEJILIIH NEWS

Mr. Arthur Gray, director Of community relations for
the National Cable Television Association (NCTA) has
criticized the findings of a citizen's report on the future

of cable television in the City of Norwalk. The report to

r:~_——_____.'- < -

be published next week, recommends a municipally owned
cable system be constructed.

”Municipal ownership of cable television systems may
seem attractive to cities which want to save money", stated
Mr. Gray, "but it would probably cause more problems than
it would solve."

Mr. Gray said the NCTA has launched aggressive public
relations campaigns to make local citizens aware of the
"many problems inherent in city ownership of cable tele—
vision systems". If it appeared that Norwalk city officials
were considering city ownership, Mr. Gray promised an
"active industry effort" to make the public and elected

officials aware of the hazards of such ownership.

 

 

71

CONSULTANT REPORT

TO: Belmont Springs Cable Organizing Group

 

FROM: Cohen and Associates, Communications Consultants
SUBJECT: Cable Ownership Alternatives

You have requested assistance in determining the type
of cable system ownership that would best serve the City of
Belmont Springs. To this end, Cohen and Associates has
conducted extensive investigations of community Opinion
leaders, reviewed the experiences of other similar communi—
ties, and examined relevant research.

Our policy is not to provide our clients with only one
definitive conclusion; rather, we provide the results of our
investigations to provide our clients with multiple options.
Our investigations show:

1. Belmont Springs offers a commercial private cable
entrepreneur a very attractive package: a rapidly
developing community with a high percentage of
affluent families, a significant investment and
interest in audio and telecommunications media and
a higher than normal percentage of television and
FM reception problems (especially the Chelsea Hills
area).

2. Municipal ownership of the Belmont Springs' cable
television system is another possibility. Our
rough estimates show it would take approximately
$3,000,000 to construct the cable system if con—
struction began within the next few months.
Contacts reveal that some city officials may be
reluctant to have the city incur that degree of
financial obligation in light of what they con-
sider "more pressing problems". The use of

 

 

72

 

F l

revenue bonds for construction is another possi-
bility; however, the State Municipal Finances Com—
mission has not issued a decision on whether such
bonds can be used for cable television systems.

If and when there is such a decision, we would
suggest that Belmont Springs look closely to
revenue bonds as a possible funding source because
of the many tax advantages they offer.

The National Cable Television Association,
the commercial industry association, has a history
of lobbying against municipal ownership. It has
recently begun a ”public awareness“ campaign in
Norwalk, and should Belmont Springs propose such
ownership, the N.C.T.A. would no doubt initiate
similar tactics. This in itself should not deter
a city from adopting municipal ownership, but such
opposition may slow or jeopardize the cable
decisionmaking process.

3. A strictly noncommercial form or ownership, while
offering several advantages, may face obstacles in
becoming a viable ownership alternative in Belmont
Springs. Sufficient community interest exists,
but the chief barrier to such ownership is lack of
money. It appears that there is no foundation
money or federal support available in the amounts
required to construct a cable system for Belmont
Springs. Such a group could Obtain "seed capital“
loans, loan guarantees, subsidized interest pay-
ments, or tax-oriented partnerships however.

Questions regarding rates, services, and other
policies will arise whether the owner is an M.S.O., munici-
pal government, or noncommercial corporation. Such policy
choices are independent of ownership. However, the city
should examine closely all alternatives and select the form
of ownership which appears to provide a structure most con-
ducive to achieving the local interest, wants, and needs

concerning cable television.

 

 

.._4 “._:

 

73

DECISION EXPLANATION SHEET #3

 

The Decision:

According to the information given, private ownership

 

appears to be the most realistic choice for ownership of
cable television in Belmont Springs. As runner-up comes
municipal ownership with noncommercial ownership the least

feasible form.

 

This decision is worth points. If your
selection for ownership was correct, give your
team points for the right decision and
more points if your reasons were the same
as or very similar to the reasons stated below.
Read the explanations and mark your scorecard.

 

 

 

 

If your group selected municipal ownership score
points for your decision and up tO'

more points if your reasons follow those given

below. If noncommercial ownership was the group

selection, enter 0 points for this decision.

 

 

 

The Explanation:

 

Ownership is one of the delicate issues for which there
is no one correct answer. Private ownership of the cable
system in Belmont Springs was selected because it appeared
to have the best chance of becoming reality in the near
future.. The C.O.G. community study revealed Belmont Springs
as a very attractive market for cable television: a rapidly

developing community with a high percentage of affluent

74

families, a significant investment and interest in audio and
telecommunications media, and a higher than normal percentage
of television and FM reception problems (especially in the
Chelsea Hills area). The privately owned cable companies
were aware of the market and approached the city Officials

to initiate action on cable policy. These companies offer
strong advantages: they generally have the financing avail-
able, and they do have the experience and structure to effi-
ciently operate a cable system.

Some Of the disadvantages to private ownership can be
controlled during the legislation and selection phases.

Rules on cross ownership, rates and local control over the
operation of the system can be generated to alleviate some
of the negative aspects of a privately owned system.

At this point in time, data on the successes of municipal
ownership Of cable systems in metropolitan areas is very
scarce. For that reason city Officials have generally been
reluctant to commit tax assessments, general obligation bonds,
or revenue bonds to finance a very expensive and yet unproven
service. There was some indication that this was the case in
Belmont Springs. Cable television must also compete for
attention with other urban problems, such as drug abuse and
transportation. Also, there is no guarantee that city owner-
ship would produce better results: revenues may be used to
"bail out" Other city services rather than reinvesting them

in the cable system.

75

Municipal ownership, on the other hand, has been sug—
gested by an ever-growing number of cable research groups.
Properly structured, financed, and administered, it can
provide residents with cable services at rates generally
lower than a privately owned system, and there usually is
more motivation (because the city is financing it) to seek
local involvement in programming and services.

The noncommercial form of ownership appeared to have
the least chance Of becoming a reality. There was no in-
formation given to suggest that there was any institution or
consortium of community groups initiating such an effort.
Securing the estimated $3,000,000 capital would pose a for-
midable obstacle to this form of ownership.

It should be noted that the forms Of ownership discussed
above do not represent all possibilities. Several local com-
munities have creatively combined two of the ownership options
to best meet the needs of their commgnity. In doing so,
local groups should examine the needs of their community, the
resources available, and the form or forms of ownership that
can best deliver those needs.

There are several policy choices which are independent
of ownership; questions regarding rates, services, and other
policies will arise whether the owner is public or private.
Local citizens have several opportunities after the form of
ownership has been determined to be sure the services they

desire in a cable system are present.

Lilla-

 

76

DECISION POINT #4

 

The Situation:

 

All C.O.G. subcommittees have completed the Examination
EEEEE in the cable decisionmaking process by reporting their
findings to the entire group. Your subcommittee reported it
found private ownership of the cable system the alternative
with the best chance of becoming reality in the near future.
All C.O.G. findings are contained in a final study report
which was submitted to the Belmont Springs City Council.

That report was accepted and discussed briefly at the
last regularly scheduled council meeting. At that time,
Councilman Brandt suggested that Mr. Jerry Wald, Belmont
Springs City Attorney, and the Cable Organizing Group work

together on the Legislation Phase. The C.O.G. and the city

 

attorney will work together to draft a city ordinance for

cable television.

The Task:
Your group will now oontruct a simplified cable television
ordinance for Belmont Springs. The G.O.D. will give you a

Constructa-Ordinance Kit which contains various sections of a

 

cable television ordinance. For each section there are two or
more alternatives. Your group should choose what you believe
to be the best of the alternatives for each section and con—

struct your own ordinance.

 

77

NOTE: Cohen and Associates can assist your group in its
decisionmaking. A report for a particular section may be
obtained for $100 per section. Ask the G.O.D. for the desired

report.

The Decision: }

 

For each section of the ordinance, enter the alternative

chosen by the group in the space below:

SECTION‘ ALTERNATIVE

 

Section I

 

Section II

 

Section III

 

Section IV

 

Section V

 

Section VI

 

Section VII

 

Section VIII

 

Section IX

 

Section X

 

 

78

CONS TRUCTA-ORDINANCE KIT

 

Introduction

The purpose of a city ordinance for cable television is
to develop a law listing the specifications and obligations
that will govern the franchising of a local cable television
operator. Actual city ordinances of cable television are
long, involved legal documents. The Constructa-Ordinance Kit
is an attempt to give your group an introduction to dealing

with such documents.

The Procedure

 

l. The city ordinance will be composed of ten (10)

sections. For each section there are at least two

alternatives.

2. Read the alternatives carefully. Check to be sure
they are legal under current F.C.C. cable television
regulations (enclosed), and then make your selection

by marking the alternative letter on the Decision

 

Sheet. Watch-out for details!

 

79

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Cable Television Service

1972

80

NOTE

The following pages are excerpts from the Federal Com-
munications Report and Order on Cable Television Service,
issued February, 1972. The entire set of rules is some
ninety (90) pages long.

The excerpts which follow deal with issues raised in

Deci 8 ion Point #4 .

 

 

 

81

Title 47—IELEBIIMMUNIBATION

Chapter l—Federul Communications

Commission

[NO 12-103; Dockets Nos. 1889?. 103974.

10373. lane. 18892. and 13894]

CABLE TELEVISION SERVICE; CABLE
TELEVISION RELAY SERVICE

I. Innosccrron

1. In our Notice of proposed rule mak-
ing and notice of inquiry in Docket 18397.
we launched an inquiry into the long-
range development of cable television.’
Our purpose was to explore:

° ° ° [Blow best to obtain. consistent
with the public interest standard of the
Communications Act. the full benefits of
developing communications technology for
the public. with particular immediate refer-
ence to CATV technology and potential
services ° ° °

Though designed as a vehicle for eliciting
comments and data. our notice recog-
nized the variety of possible services that
cable systems could offer. We did not at-
tempt an all-inclusive listing of cable's
potential uses. but took note of many.”

8. The preceding is illustrative of the
range of regulatory controversy that has
surrounded the cable television industry
In recent years. Technological advances
have multiplied the issues. At first. cable
television systems served largely to pro-
vide subscribers with better quality re-
ception and more channels of conven-
tional broadcast television programing.
While need for these services continues.
Increasingly sophisticated cable technol-
ogy and cost reductions and improve-
ments in the quality of program origi-
nation equipment have made possible
Increased channel capacity. low cost
nonbroadcast programing. and a sub-
scriber response capability. The con-
fluence of these developments provides
the basis for the next stage in cable tele-
Vision‘s evolution with which the rules
n0w adopted are concerned. Additional
I3431'vices and further technological de-
v810pments are under study as part of
the industry's more distant future.

k

10 u

[Placsimile reproduction of newspapers.
magazines. documents. etc.: electronic mail
delivery; merchandising: business concern
link; to branch offices. primary customers or
Suppliers: access to computers; eg. man to
romputer communications in the nature of
“Cum-y and response (credit checks. airlines
reservaticns. branch banking. etc), infor-
mation retrieval (library and other reference
n‘a'vel'ial. etc.), and computer to computer
mmunicatlons: the furtherance of various
Eg‘wrnmentai programs on a Federal. State.
lc ‘1 municipal level; eg, employment serv-
In” and manpower utilization. special com-
negnlcations systems to reach particular
c0 Bhborhoods or ethnic groups within a
otmnmnity, and for municipal surveillance
1, Dunne areas for protection against crime.
tn detection. control of air pollution and
Statue: various educational and training pro-
8c the: e.g.. job and literacy training. pre-
1'! 001 programs in the nature of 'Project
Bums-damn.- and to enable professional groups
mg}! as doctors to keep abreast of develop-
10 fits in their fields: and the provision of a
W cost outlet for political candidates. adver-
O't‘SQPa. amateur espresslon (e.g., community
University drama groups) and for othu'
q erately funded organisations or persons
‘Qalring access to the community or a par-
: er segment of the community.” 15 1'00
417. 430.

II. Tsrsvrsron Browcssr SIGNAL CARRIAGI
PROPOSALS AND ALTERNATIVES

Educational Stations

94. The principal concern of noncom-
mercial edimtional broadcasters with
signal importation is not reduction in
audience size but possible erosion of local
support among cable television sub-
scribers. The rule we are adopting will
permit carriage of distant educational
stations in the absence of objection from
local educational stations or educational
television authorities.

95. Educational television interests
are concerned about such a rule only to
the extent that it might involve them
in difficult and expensive process. We
recognise the difllculties that educational
interests face if forced to spend time and
money in protracted litigation before the
Commission and will accordingly attempt
to settle any questions that may arise
through informal procedures. We will
give their objections careful considera-
tion. aid will endeavor to work out
accommodations that serve the public
interest. In the absence of objection.
however, the widest possible dissemina-
tion of educational and public television
programing is clearly of public benefit
and should not be restricted. The rules
require cable systems to carry. on re-
quest. all educational stations within 35
miles and those placing a Grade B con-
tour over the cable community. We are
continuing to require that local educa-
tional stations and local and State edu-
cational authorities receive direct noti-
fication of proposals by cable television
systems to carry educational stations.
While all objections will be carefully
considered. we do not ordinarily antici-
pate precluding carriage of State-oper-
ated educational stations in the same
State as the cable community.

112. The Commission will issue public
notices of all applications for certificates
of compliance. Cable systems must give
direct notice to local franchising au-
thorities. local television stations. the
superintendent of schools in the com-
munity. and local educational television
authorities. Objections to proposed cable
service may be made within 30 days after
the Commission's public notice. Contro-
versies concerning carriage (Subpart D)
and network program exclusivity
(l 76.91) will be acted on in the certifi-
cating process if raised within 30 days
of the public notice. Such matters may
be raised at any time and will be con-
sidered under the special relief rules but
outside the certificating process. The
Commission will not certify new opera-
tions for 30 days after public notice and.
whether or not objection is filed, a cable
system may not commence new service
before receipt of a certificate of compli-
ance from the Commission.

III. Access to sun Us: or Nonsaosccss'r
Camus

117. In its notice of proposed rule
making in Docket 18894. the Commission
stated that:

Cable television oflers the technological and
economic potential of an economy of
abundance!I

On the basis of the record now as-
sembled. we believe the time has come
for cable television to realize some of
that potential within a national com-
munications structure. We recognize that
in any matter involving future pro-
Jections. there are necessarily certain
imponderables. These access rules consti-
tute not a complete body of detailed reg-
ulations but a basic framework within
which we may measure cable's techno-
logical promise. assess its role in our na-
tionwide scheme of communications. and
learn how to adapt its potential {or
energetic growth to serve the public.

CHANNEL CAPACITY

1 18. Confronted with the need for
more outlets for community expression
on the one hand and. on the other. with
cable television's capacity to provide an
abundance of channels. we asserted in
our second further notice of proposed
rule making in Docket 18397-A the prin-
Ciple that the Commission “° ° ° must
make an effort to ensure the development
01’ sufficient channel availability on all
new CATV systems to serve specific rec-
ognized functions.” "

1 19. Most cable system operators and
many others argue against the proposed
establishment of a fixed minimum chan-
nel capacity. Some comments in Docket

18894 went further and suggested that
the entire matter of channel capacity be
left to experimentation.“ While it is true
that many existing cable systems have
large channel capacities and seem at
lea-St technologically prepared to meet
foresaleable demand. there are many sys-

"13 apparently content to provide only
brofidcmt signal carriage with no plans

expand service capabilities.

120- We envision a future for cable in
‘Vrshlch the principal services. channel
beef- and potential sources of income will

e rom other than over-the-air signals.
are nOte 40, 50. and 80 channel systems
(to currently being installed in some
tWee unlties. The cost' difference be-
a. 20 21 building a 12 channel system and

suchannel system would not appear to

an d betantial.“ We urge cable operators
that, franchising authorities to consider
Ceeq llture demand may significantly ex-
them clll'rent projections. and we put
ins1st on notice that it is our intention to
’ 0n the expansion of cable systems
weaocommodate all reasonable demands.
everwish to proceed conservatively. how-
ecOn' t4) avoid imposing unreasonable
cormoinlc burdens on cable operators. Ac-
ch n81y, we will not require a minimum
1 00 m e1 capacity in any except the top
that. a-!‘Itets. In these markets. we believe
tehtl 20 channel capacity (actual or po-
tl1§ “1) is the minimum consistent with
to, Dubiic interest. We also require that
3&3 each broadcast signal carried. cable
mtf‘e‘m in these markets provide an ad-
om“ channel e mm in width suitable

82

for transniasion of Class II or Class III
signals. This seems a reasonable way to
obtain necessary minimum channel ca-
pacity and yet gear it to particular com-
munity needs. We emphasize that the
cable operator cannot accept the broad-
cast signals that will be made available
without also accepting the obligation to
provide the nonbroadcast bandwidth and
the access services described below. The
two are integrally linked in the public
interest judgment we have made.

DESIGNATED CRANK!”

121. Broadcast signals are being used

as a basic component in the establish-
ment of cable systems. and it is there-
fore appropriate that the fundamental
goals of a national communications
structure be furthered by cable—the
opening of new outlets for local expres-
sion. the promotion of diversity in tele-
vision programing. the advancement of
educational and instructional television.
and increased informational services of
local governments. Accordingly. cable
television systems will have to provide
one dedicated. noncommercial public
access channel available without charge
at all times on a first-come, first-served
nondiscriminatory basis and. without
charge during a developmental period.
one channel for educational use and
another channel for local government
use. We have already imposed an obliga-
tion on systems with 3.500 or more sub-
scribers to originate programing and are
now requiring that the origination
channels be specifically designated.

122. Public access channel. It has long
been a Commission objective to foster
local service in broadcasting. To this end
we have encouraged the growth of UHF
television. and have looked to all broad-
cast stations to provide community-
oriented programing. We expect no less
of cable. In our July 1. 1970 notice we
stated:

The structure and operation of our system
of radio and television broadcasting affects.
among other things. the sense of “com-
munity" of those within the signal area of
the station involved. Recently governmental
programs have been directed toward increas-
ing citizen involvement in community
aflairs. Cable television has the potential to
be a vehicle to much needed community
expression!

We believe there is increasing need for
channels for community expression. and
the steps we are taking are designed to
serve that need. The public access
channel will oiler a practical Opportunity
to participate in community dialogue
through a mas medium. A system opera-
tor will be obliged to provide only use
of the channel without charge. but pro-
duction cost (aside from live studio pres-
entations not exceeding 5 minutes in
length) may be charg to users.

__‘_":::?3

 

123. Educational access channel. It is
our intention that local educational au-
thorities have access to one designated
channel for Instructional programing
and other educational purposes. Use of
the educational channel will be without
charge from the time subscriber service
isinaugurateduntilsyearsaflertbe
completion a! the cable system's basic
trunk line. After this developmental
period—designed to encourage innova-
tion in the educational uses of televi-
sion—we will be in a more informed posi-
tion to determine in consultation with
State and local authorities whether to
expand or curtail the free use of channels
for such purposes or to continue the
developmental period. The potential uses
of the educational channel are varied. An
important benefit promises to be greater
community involvement in school affairs.
It is apparent. for instance. that com-
bined with two-way capability. the qual-
ity of instructional programing can be
greatly enhanced. Similarly. some en-
vision significant advanws in the edu-
cational field by the linking of computers
to cable systems with two—way capap
bility.‘I For the present. we are only
requiring that systems provide an
educational channel and. as noted below.
some return communication capability.
and will allow experiments in this field
to proceed apace.

124. Government access channel. The
Government access channel is designed
to give maximumlatitude for use by local
governments. The suggestions for use

range across a broad spectrum and it is
premature to establish precise require-
ments. As with the educational channel.
use of the Government channel will be
free from the time subscriber service is
inaugurated until 5 years after the com-
pletion of the cable system's basic trunk
line. at which time we will consider
whether to expand or curtail such free
use or to continue the developmental
period.

LEASE!) ACCESS CHANNILB

125. In addition to the designated
channels and broadcast channels. cable
systems shall make available for leased
use the remainder of the required band-
width and any other available bandwidth
(e.g., if a channel carrying broadcast
programing is required to be blacked out
because of our exclusivity rules or is
otherwise not in use. that channel also
may be used for leased access purposes).
Additionally. to the extent that the pub-
lic. education. and Government access
Channels are not being used. these chan-
nels may also be used for leased opera-
tion_ But such operations may only be
undertalrer'l on the express condition that
they are subject to immediate displace-
!Dent if there is demand to use the chan-
nel 1 or the dedicated purpose.

“FUSIOK 0' CAPACITY

126.0111- basic goal is to encourage
cable television use that will lead to con-
8Mummy expanding channel capacity.
Cfible systems are therefore required to
make additional bandwidth available as
the demand arises. There are a number
°‘ W: to meet this general objective.

83

Initially. we intend to use the following
formula to determine when a new chan-
nel must be made operational: whenever
all operational channels are in use dur-
ing 80 percent of the weekdays iMonday-
Friday), for 80 percent of the time dur-
im an cmsecutive S-bour period for 6
week: running. the system will then have
Gmonthsinwhichtomakeanewcham
nel available. This requirement should
encourage use of the system with the
knowledge that channel space will al-
ways be available. and also encourage
the cable operator continually to expand
and update his system. On at least one
of the leased channels part-time users
must be given priority. We plan at a later
date to institute a proceeding with a
view to assuring that our requirement
of capacity expansion is not frustrated
through rate manipulation or by any
other means. This proceeding will also
deal with such open questions as rates
charged for leased channel operations.

12?. We are aware of the possibility
that the formula may impose undue
burdens on system operations. If it were
necessary to rebuild or add extensive new
plant. this could not reasonably be ex-
pected within a 8-month period. The
requirement for activating new capacity
within 6 months is based on our under-
standing that only relatively modest ef-
fort ls involved in converting existing
potential to actual capacity. These con-
siderations. however. point up the neces-
sity for building now with a potential
that takes the future into account. Be-
causethispartofourprogramisarel-
atively uncharted area. we will make it
a matter for continuing regulatory
concern.

TWO-WAY CAPACITY

128. On review of the comments re-
ceived and our own engineering esti-
mates. we have decided to require that
there be built into cable systems the
capacity for return communication on at
least a non-voice basis. Such construc-
tion is now demonstrably feasible." Two-
way communication. even rudimentary
in nature. can be useful in a number of
ways—for surveys. marketing services.
burglar alarm devices. educational feed—
back, to name a few.

129. We are not now requiring cable
systems to install necessary netum com-
munication devices at each subscriber
terminal. Such a requirement is prema-
ture in this early stage of cable's ,evolu-
tion. It will be sufficient for now that each
cable system be constructed with the po-
tential of eventually providing return
communication without having to en-
gage in time-consuming and costly sys-
tem rebuilding. This requirement will be
met if a new system is constructed either
with the necessary auxiliary equipment
(amplifiers and passive devices) or with
equipment that could easily be altered to
provide return service. When offered. ac-
tivation of the return service must al-
ways be at the subscriber's option.

:uurrons Arrucsau 'ro Currants
semi-mo Noasaoancasr Paoouumo

30. We now turn to the question of
regulation of access channels pre-
ting nonbroadcast programing. We
eve that such regulation is properly
concern 01’ this Commission. These
nnels fulfill Commxmications Act
poses and. in the context of our total
gram, are integrally bound up with
broadcast signals being carried by
le. It is by no means clear that the
wing public will be able to distinguish
ween a broadcast program and an ac-
I program; rather, the subscriber
. simply turn the dial from broadcast
access programing. much as he now
acts television fare. Moreover. leased
nnels will undoubtedly carry inter-
nected programing via satellite or in-
;tate terrestrial facilities. matters that
clearly within the Commission’s ju-
nction. Finally. it is this Commission
t must make the decisions as to con-
ons to be imposed on the operation of
' cable channels. and we have already
en steps in that direction. (See 176.
). Federal regulation is thus clearly
.ed for.
31. There remains the issue of
ether also to permit State or local
ulation of these channels where not
onsistent with Federal purposes. We
air that in this area a dual form or
ulation would be confusing and im-
.ctlcable. Our objective of allowing a
iod for experimentation might be
lpardized ii'. for example, a local en-
! were to specify more restrictive reg-
.tions than we have prescribed. Thus.
:ept for the Government channel, local
rulation of access channels is pre-
ded. I! experience and further pro-
:dings indicate its need or desirability.
can then delineate an appropriate
a1 role.“
l32. Because of the Federal concern.
al entities will not be permitted, ab-
lt a special showing. to require that
mnels be assigned for purposes other
m those specified above. We stress
rim that we are entering into an ex-
-imental or developmental period.
us. where the cable operator and
.nchising authority wish to experiment
providing additional channel capac-
ior such purposes as public, educa-
nal. and Government access—on a
e basis or at reduced charges—we will
'ertaln petitions and consider the ap-
>priateness of authorizing such experi-
nts. to gain further insight and to
.de future courses or action." In
nmunities outside the top 100 markets
ere access channels are not required
the Commission. we will permit local
thorities to require access services.
long as they are not in excess of what
require for the major markets.
.33. The question of what regulations
should impose at this time is most
licult. Our Judgments on how these
:ess services will evolve are at best in-
tive. We believe that the best course
to proceed with only minimal regula-
n in order to obtain experience. We
phasize. therefore. that the regulatory
item is interim in nature—that we
.y alter the program as we gain the
:essary insights.

84

PRPDUCTION PACILITIIB

142. It is apparent that our goal of
creating a low-cost. nondiscriminatory
means of access cannot be attained un-
less members of the public have reason-

able production facilities available to
them. Weexpectmatmanvcahlesys-
tems will have facilities with which to
originate programing that will also be
available to produce program material
for public access. Hopefully. colleges and
universities. high schools. recreation de-
partments. churches. unions. and other
commimity groups will have low-cost
video-taping equipment for public use.
In any event. we are requiring that the
cable operator maintain within the fran-
chise area production facilities for use
on the public access channel.

143. In this experimental stage. it
would be sell-defeating to require cable
systems to carry access programing and
at the same time meet stringent technical
standards. Thus. for the present. our
technical standards will apply only to
Class I channels (those used to distribute
broadcast programing—see £76.5(s) of
the rules). We note specifically that the
use of halt-inch video tape is a growing
and hopeful indication that low-cost
recording equipment can and will be
made available to the public. While such
equipment does not now meet our tech-
nical standards for broadcasting. there
is promise of its improvement and refine-
ment. Further. since it provides and in:-
erpensive means of program production.
we see no reason why technical develop-
ment of this nature should not be en-
couraged for use on cable systems.

144. Elaborate suggestions have been
made for comprehensive community con-
trol plans such as neighborhood origina-
tion centers and neighborhood councils
to oversee access channels. Here again
the Commission will encourage experi-
mentation rather than trying to impose
a more formal structure at this time.

APPLICABILITY

147. These access rules will be appli-
cable to all new systems that become op-
erational after March 31. 1972 in the top
100 television markets. Currently operat-
in'g systems in those markets will have
5 years to comply fully with this section.
We focus here on the top 100 markets
because we have selected these markets
as the recipients of certain benefits in
order to stimulate cable growth. But.
correspondingly. that growth should be
accompanied by accesss obligations if the
public is to receive the full benefits of
this program. Further. cities in the top
100 markets have. as a general rule. more
diverse minority groups (ethnic. racial.
economic. or age) who are most greatly
in need of both an opportunity to express
their views and a more efficient method
by which they can be apprised of gov-
ernmental actions and educational op-
portunlties. To the extent that the ac-
cess requirements pose problems for sys-
tems operating in small communities in
major markets. such systems are free to
meet their obligations through joint
building and related programs with
cable operators in the larger core areas.

0.- .‘.5 _-¢

av

 

IV. Tscnmcxx. Susanna

178. Franchising. We are requiring
that before a cable system commences
operation with broadcast signals, it must
obtain a certificate of compliance from
the Commission. The application for
such a certificate must contain (5 76.31
(al( 1)) a copy of the franchise and a
detailed statement showing that the
franchising authority has considered in a
public proceeding the system operator's
legal. character, financial. technical. and
other qualifications. and the adequacy
and feasibility of construction arrange-
ments. We expect that franchising au~
thorities will publicly invite applications.
that all applications will be placed on
public file. that notice of such filings will
be given. that where appropriate a public
hearing will be held to afford all inter-
ested persons an opportunity to testify
on the qualifications of the applicants.
and that the franchising authority will
issue a public report setting forth the
basis for its action. Such public partici-
pation in the franchising process is nec-
essary to assure that the needs and

desires of all segments of the community
are carefully considered.

180. Franchise area. Another matter
uniquely within the competence of local
authorities is the delineation of fran-
chise areas. We emphasize that provision
must be made for cable service to develop
equitably and reasonably in all parts of
the community. A plan that would bring
cable only to the more affluent parts of
a city. ignoring the poorer areas. simply
could not stand. No broadcast signals
would be authorized under such circum-
stances. While it is obvious that a fran-
chisee cannot build everywhere at once
within a designated franchise area. pro-
vision must be made that he develop
service reasonably and equitably. There
are a variety of ways to divide up com-
munities; the matter is one for local
judgment.

181. Construction. We are establishing
in §76.3l(8.)(2) general timetables for
construction and operation of systems to
insure that franchises do not lie fallow
or become the subject of trafficking.
Specifically. we are providing that the
franchise require the cable system to ac-
complish significant construction within
1 year after the certificate of compliance
is issued. and that thereafter energized
trunk cable be extended to a substantial
percentage of the franchise area each
year. the percentage to be determined by
the franchising authority. [is a general
proposition. we believe that energized
trunk cable should be extended to at least
20 percent of the franchise area per year.
with the extension to begin within 1 year
after the Commission issues its certifi-
cate of compliance. But we have not
established 20 percent as an inflexible
figure. recognizing that local circum-
stances may vary.”

85

182. Franchise duration. We are re-
quiring in i 76.31(a) (3) that franchising
authorities place reasonable limits on the
duration of franchises. Long terms have
generally been found unsatisfactory by
State and local regulatory authorities."
and are an invitation to obsolescense in
light of the momentum of cable tech-
nology." We believe that in most cases a
franchise should not exceed 15 years
and that renewal periods be of reasonable
duration. We recognize that decisions of
local franchising authorities may vary
in particular circumstances. For instance.
an applicant‘s proposal to wire inner-
city areas without charge or at reduced
rates might call for a longer franchise.
0n the other hand. we note that there is
some support for franchise periods of
less than 15 years."

185. Franchise lee. While we have de-
cided against adopting a 2 percent limi-
tation on franchise fees, we believe some
provision is necessary to insure reason-
ableness in this respect. First. many local
authorities appear to have exacted high
franchise fees more for revenue-raising
than for regulatory purposes. Most fees
are about 5 or 6 percent. but some have
been known to run as high as 36 percent.
The ultimate effect of any revenue-rais-
ing fee is to levy an indirect and regres-
sive tax on cable subscribers. Second. and
of great importance to the Commission.
high local franchise fees may burden
cable television to the extent that it will
be unable to carry out its part in our na-

tional communications policy.“ Finally.
cable systems are subject to substantial
obligations under our new rules and may
soon be subject to congressionally-im-
posed copyright payments. We are seek-
ing to strike a balance that permits the
achievement of Federal goals and at the
same time allows adequate revenues to
defray the costs of local regulation

186. The Commission imposes an an-
nual fee of 30 cents per subscriber to
help finance its own cable regulatory
program. Assuming average annual reve-
nues to the cable system of $60 per sub-
scriber. the Commission‘s fcc amounts
to one—half of 1 percent of a system's
gross receipts. The regulatory program
to be carried out by local entities is
different in scope and may vary from
jurisdiction to juiisdiction. It is our
judgment that maximum franchise fees
should be between 3 and 5 percent of
gross subscriber revenues. But we believe
it more appropriate to specifv this per-
centage range as a general standard. for
specific local application. When the fee
is in excess of 3 percent (including all
forms of consideration. such as initial
lump sum payments). the franchising
authority is required to submit a show-
ing that the specified fee is appropriate
in light of the planned local regulatory
program. and the franchisee must
demonstrate that the fee will not inter-
fere with its ability to meet the obliga-
tions imposed by our rules.

PART 76—CABLE TELEVISION SERVICE
Subperi A—Oenerel

§ 76.7 Special relief.

(a; Upon petition by a cable television
system. an applicant. pennittee. or ii-
censee of a television broadcast. trans-
lator. or microwave relay station. or by
any other interested person. the Com-
mission may waive any provision of the
rules relating to cable television systems.
impose additional or different require-
ments. or issue a ruling on a complaint
or disputed question.

(b) The petition may be submitted in-
formally. by letter. but shall be accom-'
panied by an affidavit of service on any
cable television systems. station licensee.
permittee. applicant. or other interested
person who may be directly affected if the
relief requested in the petition should be
granted.

(c) (i) The petition shall state the
relief requested and may contain alterna-
tive requests. It shall state fully and
precisely all pertinent facts and con-
siderations relied on to demonstrate the
need for the relief requested and to sup-
port a determination that a grant of such
relief would serve the public interest.
Factual allegations shall be supported by
affidavit of a person or persons with
actual knowledge of the facts. and ex-
hibits shall be verified by the person who
prepares them.

(2) A petition for a ruling on a com-
plaint or disputed question shall set forth
all steps taken by the parties to resolve
the problem. except where the only relief
sought is a clarification or interpretation
of the rules.

(d) Interested persons may submit
comments or opposition to the petition
within thirty (30) days after it has been
filed. For good cause shown in the peti-
tion. the Commission may. by letter or
telegram to known interested persons.
specify a shorter time for such submis-
sions. Comments or oppositions shall be
served on petitioner and on all persons
listed in petitioner‘s affidavit of service.
and shall contain a detained full showing.
supported by aflidavit. of any facts or
considerations relied on.

(e) The petitioner may file a reply to
the comments or oppositions within
twenty (20) days after their submission.

which shall be served on all persons who
have filed pleadings and shall also con-
tain a detailed full showing. supported
by aflldavit. of any additional facts or
considerations relied on. For good cause
shown. the Commission may specify a
shorter time for the filing of reply
comments.

(f ) The Commission. after considera-
tion of the pleadings. may determine
whether the public interest would be
served by the grant. in whole or in part.
or denial of the request. or may issue a
ruling on the coniplaint or dispute. The
Commission may specify other proce-
dures. such as oral argument. eviden-
tiary hearing. or further written submis-
sions directed to particular aspects. as it
deems appropriate. In the event that an
evidentiary hearing is required. the
Commission will determine. on the basis
of the pleadings and such other proce-
dures as it may specify. whether tempo-
rary relief should be afforded any party
pending the'hearing and the nature of
any such temporary relief.

86

Subperi C—Federol-Sioie [Local
Regulatory Relationships

§ 76.31 Franchise standards.

(a) In order to obtain a certificate of
compliance. a proposed or existing cable
television system shall have a franchise
or other appropriate authorization that
contains recitations and provisions con-
sistent with the following requirements:

(1) The franchisee's legal. character.
financial. technical. and other qualifica-
tions. and the adequacy and feasibility of
its construction arrangements. have been
approved by the franchising authority
as part of a full public proceeding af-
fording due process:

(2) The franchisee shall accomplish
significant construction within one (1)
year after receiving Commission certifi-
cation. and shall thereafter equitably
and reasonably extend energized trunk
cable to a substantial percentage of its
franchise area each year, such percent-
age to be determined by the franchising
authority;

(3) The initial franchise period and
any renewal franchise period shall be of
reasonable duration;

(4) The franchising authority has
specified or approved the initial rates
which the franchisee charges subscribers
for installation of equipment and regu-
lar subscriber services. No changes in
rates charged to subscribers shall be
made except as authorized by the fran-
chising authority after an appropriate
public proceeding affording due process;

(5) The franchise shall specify proce-
dures for the investigation and resolu-
tion of all complaints regarding the
quality of service. equipment malfunc-
tions. and similar matters. and shall re-
quire that the franchisee maintain a
local business office or agent for these
purposes;

(6) Any modifications of the provi-
sions of this section resulting from
amendment by the Commission shall be
incorporated into the franchise within
one (1) year of adoption of the modifica-
tion. or at the time of franchise renewal.
whichever occurs first: Provided. how-
ever. That. in an application for certifi-
cate of compliance. consistency with
these requirements shall not be expected
of a cable television system that was in
operation prior to March 31. 1972. until
the end of its current franchise period.
or March 31. 1977. whichever occurs first.

(b) The franchise fee shall be reason-
able (e.g.. in the range of 3—5 percent of
the franchisee's gross subscriber reve-
nues per year from cable television op-
erations in the community (including all
forms of consideration. such as initial
lump sum paymentsi). If the franchise
fee exceeds 3 percent of such reve-
nues. the cable television system shall
not receive Commission certification un-
til the reasonableness of the fee is ap-
proved by the Commission on showings.
by the franchisee. that it will not inter-
fere with the effectuation of Federal
regulatory goals in the field of cable tele-
vision. and. by the franchising authority.
that it is appropriate in light of the
planned local regulatory program. The
provisions of this paragraph shall not be
effective with respect to a cable television
system that was in operation prior to
March 31. 1972. until the end of its cur-
rent franchlse period. or March 31. 1977,
whichever occurs first.

”’1

"l’ .1

-

Subparl G—Coblecosiing

§76.201 Origination cablecasting in
conjunction with carriage of broad-
cast signals.

(a) No cable television system having
3.500 or more subscribers shall carry the
signal of any television broadcast station
unless the system also operates to a sig-
nificant extent as a local outlet by orig-
ination cablecasting and has available
facilities for local production and presen-
tation of program other than automated
services. Such origination cablecasting
shall be limited to one or more desig-
nated channels which may be used for no
other purpose.

§76.251 Minimum channel capacity;
access channels.

(a) No cable television system operat-
ing in a community located in whole or
in part within a major television market.
as defined in i 76.5, shall carry the signal
of any television broadcast station unless
the system also complies with the follow-
ing requirements concerning the avail-
ability and administration of access
channels:

( 1) Minimum channel capacity. Each
such system shall have at least 120 MHz
of bandwidth (the equivalent of 20 tele-

vision broadcast channels) available for

immediate or potential use for the to-
tality of cable services to be offered:

(2) Equivalent amount of bandwidth.
For each Class I cable channel that is
utilized. such system shall provide an ad-
ditional channel. 6 MHz in width. suit-

able ior transmission of Class II or Class

III signals (see i 76.5 for cable channel
definitions):

(3) Two-way communications. Each

such system shall maintain a plant hav-
ing technical capacity for nonvoice re-
turn communications;

(4) Public access channel. Each such
systemshallmalntainatleastonespe-
cially designated. noncommercial public
access channel available cm a first-come.
nondiscriminatory buis. The system
shall maintain and have available for
public use at least the minimal equip-
ment and facilities necessary for the pro-
duction of programing for such a chan-
nel. See also 5 76.201:

(6) Education access channel. Each
such system shall maintain at least one
specially designated channel for use by
local educational authorities:

(6) Local government access channel.
Each such system shall maintain at least
one specially designated channel for local
government uses:

(7) Leased access channels. Having
satisfied the origination cablecastlng re-
quirements of § 76.201. and the require-
ments of subparagraphs (4). (6). and
(6) of this paragraph tor specially desig-
nated access channels. such system shall
oiler other portions of its nonbroadcast
bandwidth. including unused portions of
the specially designated channels. for
leased access services. However. these
leased channel operations shall be imder-
taken with the express understanding
that they are subject to displacement it
there is a demand to use the channels (or
their specially designated purposes. On
at least one at the leased channels.
priority shall be givm part-time users:

87

(8) Expansion of access channel
capacity. Whenever all of the channels
described in subparagraphs (4) through
(7) at this paragraph are in use during
80 percent of the weekdays (Monday-
Friday) for 80 percent of the time during
any consecutive 3-hour period for 6 con-
secutive weeks. such system shall have 6
months in which to make a new channel
available for any or all of the above-
described purposes:

(9) Program content control. Each
such system shall exercise no control
over program content on any of the
channels described in subparagraphs (4)
through (7) of this paragraph: however.
this limitation shall not prevent it from
taking appropriate steps to insure com-
pliance with the operating rules de-
scribed in subparagraph (11) of this
paragraph:

(10) Assessment of costs. (1) From the
commencement of cable television serv-
ice in the community at such system
tmtil five (5) years after completion of
the system's basic trunk line. the chan-
nels described in subversgraphs (5) and
(6) of this paragraph shall be made
available without charge. ,

(ii) One of the public access channels
described in subparagraph (4) of this
paragraph shall always be made avail-
able without charge, except that produc-
tion costs may be assessed for live studio
presentations exceeding 5 minutes. Such
production costs and any fees for use at
other public access channels shall be
consistait with the goal or affording the
pimlic a low-cost means of television
access;

(11) Operating rules. (i) For the pub-
lic access channel“). such system shall
establish mles requiring first-come non-
discriminatory access; prohibiting the
presentation 01’: Any advertising mate-
rial designed to promote the sale of com-
mercial products or services (including
advertising by or on behalf oi candidates
for public omce); lottery information:
and obscene or indecent matter (modeled
after the prohibitions in it 76.213 and
76.215. respectivew); and permitting
public inspection of a complete record
of the names and addresses of all persons
or groups requesting access time. Such a
record shall be retained for a period of
2 years.

(ii) For the educational access chan-
nel(s). such system shall estabish rules
prohibiting the presentation of: Any
advertising material designed to promote
the sale of commercial products or serv-
ices (including advertising by or on be-
half of candidates for public office):
lottery information: and obscene or in-
decent matter (modeled after the pro-
hiutions in ii 76.213 and 76.215. respec-
tively) and permitting public inspection
ot a complete record of the names and
addresses of all persons or groups re-
questing access time. Such a record shall
be retained for a period or 2 years.

(iii) For the leased channel(s). such
system shall establish rules requiring
first-come. nondiscriminatory access:
prohibiting the presentation of lottery
information and obscene or indecent
matter (modeled after the prohibitions
in u 76.213 and 76.215. respectively) : re-
quiring sponsorship identification (see
5 76.221); specifying an appropriate rate
schedule and permitting public inspec-
tion of a complete record of the names
and addresses of all persons or groups
requesting time. Such a record shall be
retainedtorapenod otZyears.

 

(iv) The operating rules governing
public access, educational. and leased
channels shall be filed with the Commis-
sion within 90 days after a system first
activates any such channels. and shall be
available for public inspection at the
system's ofiices. Except on specific au-
thorization, or with respect to the opera-
tion of the local government access chan-
nel. no local entity shall prescribe any
other rules concerning the number or
manner of operation of access chan-
nels: however. franchise specifications
concerning the number of such channels
for systems in operation prior to March
31. 1972, shall continue in eifect.

(b) No cable television system located
outside of all major television markets
shall enter into any contract. arrange-
ment. or lease for use of. its cablecasting
facilities which prevents or inhibits the
use of such facilities for a substantial
portion of time (including the time pe-
riod 6—11 pm.) for local programing de-
signed to inform the public on contro-
versial issues of public importance.

PART 78—-CAILE TELEVISION
RELAY SERVICE

Subpan B—Applicotions and license:
5 78.11 Permissible service.

(a) Cable television relay stations are
authorized to relay television broadcast
and related audio signals. the signals of
standard and FM broadcast stations. sig-
nals of instructional television fixed sta-
tions. and cablecastlng intended for use
solely by one or more cable television
systems. LDS stations are authorized to
relay television broadcast and related
audio signals. the signals of standard

and FM broadcast stations. signals oi
instructional television fixed stations.
cablecasting. and such other communi-
cations as may be authorized by the
Commission Relaying includes retrans-
mission of signals by intermediate relay
stations in the system. CAR licensees
may interconnect their facilities with
those of other CAR or common carrier
licensees. and may also retransmit the
signals of such CAR or common carrier
stations. provided that the program ma-
terial retransmitted meets the require-
ments of this paragraph.

88

Title 47—TElEO0MMUNIBATIUN

Chapter I—Federal Communications
Commission

[Docket No. 18397 etc.; F‘CC 72-530]

PART I—PRACTICE AND PROCEDURE
PART 76—CABLE TELEVISION
SERVICE

Reconsideration of Report and Order

ACCESS TO AND USE OF NONBROAFCAST
CHANNELS

75. Smaller market minimum chan-
nel capacity. Pubii-Cable. Inc. suggests
that we complement the minimum chan-
nel capacity rules with a requirement
that new systems in smaller markets have
a minimum of 12 channels and that
existing systems in these markets have
5 years (or until the renewal of their
franchises. whichever occure first) to at-
tain a 12-channel capacity.

79. We do not find these arguments
persuasive. In our rules dealing with
channel capacity. our goal was to insure
that cable systems in major markets
would not underbuild. "We urgeldl cable
operators and franchising authorities to
consider that future demand may sig-
nificantly exceed current projections.
and we put them on notice that it is
our intention to insist on the expansion
of cable systems to accommodate all
reasonable demanda'” We believe this
consideration to be controlling and find
it difl‘icmt to believe that cable operators
will not carry all the broadcast signals
available to them.

80. Number 0] designated access chan-
nels. Publi—Cable. Inc., the National As-
sociation of Educational Broadcasters
(NAEB), and the National Education As-
sociation (NEA) have questioned what
they regard as an unduly severe limita-
tion on the number of designated access
channels to be provided by cable systems
pursuant to t76.251(a) (4). (5). and (6)
of the rules. They argue. particularly
with respect to educational channels.
that the potential for use far exceeds
the limit of one channel. NEA has sug-

gested. once more. that a minimum of
20 percent of system capacity be set aside
for educational use.

81. It should be noted at the outset
that, while one educational access chan-
nel is the minimum required, we spe-
cifically provide in £76.251(a)(8) for
adding more access channels should the
need for such channels be adequately
demonstrated. Thus we envision an or-
derly growth of access channels. linked
to demand.' In addition. in the Cable
Television Report and Order we stated
that after a developmental period (to be-
gin from the commencement of service
until 5 years after completion of the basic
trunk line) “designed to encourage in-
novation in the educational uses of tele-
vision—we will be in a more informed
position to determine in consultation
with State and local authorities whether
to expand or curtail the free use of chan-
nels for such purposes or to continue the
developmental period." "' Clearly. as we
have stated. this is an area which we will

revisit. But without the further knowl-
edge which can be gained only from al-
lowing cable systems to experiment with-
in our initial framework. we are not in-
clined to add extra burdens to the access
requirements. Finally. we are in no way
restricting arrangements between the
local entity and the cable operator to
provide specified numbers of channels
for educational purposes on a paid basis.
Such arrangements constitute the very
type of new service which cable can and
should provide. Further. we will enter-
tain petitions from the franchising au-
thority and the cable system when they
wish to experiment with additional desig-
nated channels on a free basis or at re-
duced rates.

PEDEBAL-STATE/LOCAL RELATION SHIPS

110. Multiple franchising. Publi-Cable.

Inc.. urges the Commission to adOpt more
comprehensive rules encouraging multi-
ple franchise arrangements for large
cities and promoting more citizen partic-
ipation. As we noted in the Cable Tele-
vision Report and Order, we are looking
forward to a period of experimentation
in the development of cable television.
While Publi-Cable's comments on the de-
sirability of multiple franchising and
citizen participation are valuable and
hopefully will be implemented in various
localities. it would be premature at this
time to institute specific comprehensive
rules of this nature. We are attempting
to give great latitude to local entities to
experiment with the various regulatory
and franchising modes for cable televi-
sion. We do not wish to hamper that
flexibility any more than is necessary.

89

111. Franchise duration. Publi-Cable
also argues that franchises should be
limited to 10 years, with renewal periods
not to exceed 3 years. In §76.3l(a)(3)
of our rules, we required only that initial
franchise periods and renewals be of
“reasonable duration." We noted in the
report and order, however, our general
belief that a franchise period should not
exceed 15 years. While there may be sit-
uations where a lS-year franchise pe-
riod is inappropriate, it appears to be a
reasonable point of departure. Because
our requirement of “reasonable duration"
seems to have confused some parties, we
have decided that our rules should more
directly reflect the statements made in
the report and have therefore now set
15 years as the standard to be followed
(See revised 3 78.31 (a) (3) ). If good cause
can be shown in a particular instance
for some other franchise period. we will
of course entertain such a documented
showing in a petition for special relief.

114. Interconnection of franchise
areas. The National Association of Edu-
cational Broadcasters is concerned with
how cable is to develop to assure the in-
terconnection of franchise areas (region-
ally or statewide) and the adequate plan-
ning of equitable service expansion from
urban to rural areas. Petitioner argues
that local officials may not be able to
meet such a challenge for compatible de-
velopment and interconnection across
political boundaries. Again. we feel that
it would be premature to codify such
rules as the petitioner suggests. How-
ever. we do agree with the NAEB that
such guidelines should be identified as
a priority problem for the Cable Tele-
vision Advisory Committee on Federal-
Btate/local relationships.

90

Section I: Term of Franchise (Alternative A)

Any franchise issued pursuant to this ordinance shall

be a non-exclusive franchise for a term of years not to
exceed five (5) years, as the Council may approve and shall

be issued in the form to be determined by the Councils

Section I: Term of Franchise (Alternative B)

No franchise granted hereunder, nor any renewal thereof,
sfliall be for a term of more than fifteen (15) yearso A re-
ruawal may be granted not more than two (2) years prior to

tile expiration of any existing termo

_

§§H2tion I: Term of Franchise (Alternative C)

The franchise to be granted by the City of Belmont
Springs pursuant to this Act shall grant to the Franchisee
tiles right, privilege and franchise to construct, operate and
maintain a cable television system in the streets and roads
or? IBelmont Springs for a period of ten (10) years from and
after the grant and acceptance date of the franchise to be
éhiétrded subject to the conditions and restrictions as here-

11'1 a fter provided .

K

§§§<2rtion II: Selection of Franchisee (Alternative A)

The application for such a franchise to install, con—

Stinflict, maintain or operate a cable television system in
thLGB City of Belmont Springs shall be made in writing to the
Co'llrlcil. Such an application shall include as much detailed

in-ifcxrmation as possible to assist the Council in selecting
the best possible franchisee. '

\

91

 

Section II: Selection of Franchisee (Alternative B)

In selecting a franchisee pursuant to this ordinance,
the City shall prepare a Request for Proposal (RFP) to seek
bids for a cable television system to be established by the
City. This RFP will contain a map of the territory to be
served, a statement of the applicant’s legal, financial and
technical qualifications, and a detailed listing of cable
programming and services to be provided. The RFP will also
contain instruction for filing proposals and the criteria to

be used in evaluating proposals.

‘ Section III: Franchise Fees (Alternative B)
The franchisee shall pay to the City of Belmont Springs
fcur each calendar year or fraction thereof during the term of
tilis franchise, three (3%) percent of the gross annual
reuceipts from Operation of the proposed service; provided,
tfllért every such annual payment shall not be less than three

thousand dollars ($3,000) .

¥

§Si$§tion III: Franchise Fees (Alternative A)

During the term of any franchise granted pursuant to
this ordinance, the franchisee shall pay to the City for the
uEBGE: of its streets, public places, and other facilities, as
W€=JL21 as the maintenance, improvements, and supervision there-
of?.' an annual franchise fee in the amount of six (6%) percent
of? ‘the annual Local Gross Revenues received by it from Opera-

ti.c>11s conducted within the City.

_-‘

Egrcrtzion IV: Franchise Fee Disbursement . (Alternative A)

. All franchise fees collected pursuant to Section III of
this ordinance shall be retained by the City and placed in
thee (Iity's general fund to cover the overhead incurred by
thea (Zity in the administration of this ordinance.

\

92

 

Section IV: Franchise Fee Disbursement (Alternative B)
The City shall disburse eighty (80%) percent of the
revenues from franchisees to the Cable Commission (estab-
lished under Section X) for the develOpment of the public
'channels. The City shall retain twenty (20%) percent of
the revenues from franchisees in the City”s general fund to

cover City overhead expenses incurred in respect to adminis-
tration of this ordinance or any franchises granted pursuant

thereto.

_

fiection V: Interconnection (Alternative A)

The franchisee must interconnect its cable television
§)’Srtem with all other contiguous cable systems, and must
interconnect with other cable systems in the greater Norwalk
InGitzropolitan area in such a way that subscribers can receive
't 62 channels of all interconnected systems at any time°

_‘

Interconnection (Alternative B)

Egtion V:
The franchisee will be required to interconnect its

Cable television system with any other system operating in
an adjacent territory. Such interconnection shall be made

within sixty (60) days of a request made by the City. For
E3<3>Odcause shown, the franchisee may request reasonable ex-

eIizsions of time to comply with the requirements.

\
mion VI:

The franchisee's distribution system shall initially be
:iéiIPEible of carrying at least forty (40) channels of tele-
tision breadth, on a dual trunk and single-feeder construc-
di-On. The system shall also provide simultaneous reverse
sirection signal capability for digital, audio, and video

ignal transmission.

.~___m~___‘

Number of Channels (Alternative A)

 

93

 

Section VI: Number of Channels (Alternative B)

 

The cable television system to be installed by the fran-
chisee shall initially be capable of carrying at least twenty
(20) channels of television breadth on a single cable con-
struction. Said system must also provide two~way response
capability.

 

Section VII: Public Service Installations (Alternative A)

 

The franchisee shall, without charge for installation,
maintenance, material, or service, install its cable tele-
vision service outlets at all fire and police stations, all
classrooms in public and private schools within the City,
including the Garfield Community College and the area voca-
tional technical college: make installations to the City Hall,
all public buildings, and all public libraries. No monthly
service charges shall be made for distribution of the fran—
chisee's signals within such facilities.

 

Section VII: Public Service Installations (Alternative B)

 

It shall be the responsibility of the franchisee to make
single installations of its standard cable television service
to public and private schools within the franchise area, in-
cluding Garfield Community College and the area vocational
technical college. Single installations shall also be made
at all fire and police stations, the City Hall, public build»
ings, and all public libraries. Such installations shall be
made at such reasonable locations as shall be requested by
the respective units of government or educational installa-
tions. No monthly service charges shall be made for distribu~
tion of the franchisee's signals within such facilities.

 

Section VIII: Rates of Subscribers (Alternative B)

 

The franchisee shall not, in its rates or charges, make
or grant preference or advantages to any subscriber or poten-
tial subscriber to the cable television system, and shall not
subject any such persons to any prejudice or disadvantage.

94

 

Section VIII: Rates to Subscribers (Alternative A)

 

The franchisee shall submit a full listing of subscriber
and user service rates to the City for approval. Such list-
ing shall include connection charges and monthly rates for
single and multiple dwelling subscribers, hotels and motels,
and rates for special classes of users to include senior
citizens and welfare recipient subscribers.

 

Section IX: Censorship (Alternative A)

It shall be the responsibility of the franchisee to meet
all existing F.C.C° regulations pertaining to censorship and
additionally determine if material cablecast over the cable
system meets local standards for obscenity, whether programs
are fraudulent, defamatory, or otherwise illegal.

 

Section IX: Censorship (Alternative B)

 

The franchisee shall comply with existing F.C.C° regula—
tions pursuant to obscenity, lotteries and advertising over
public channels, but is otherwise prohibited from censoring
any program cablecast over public channels.

 

Section X: Regulatory Body (Alternative A)

 

A separate agency or regulatory body shall be estab-
lished by the City to oversee the operation of the franchisee.
The agency shall be composed of members appointed by the
Council who reside within the franchise area.

 

Section X: Regulatory Body (Alternative B)

The City of Belmont Springs Council shall appoint five
residents to serve as members of a regulatory body to:
1. monitor compliance of franchisee with ordinance provisions,
2. plan future uses of cable television services, 3. review
franchisee’s records, 4. make recommendations on the rate
structure, 5. stimulate the use of public channels, and in
general, oversee cable operations to protect the interest of
the City.

95

 

W

TO: Belmont Springs Cable Organizing Group
FROM: Cohen and Associates, Communications Consultants

SUBJECT: Term of Franchise

Our examination of other cable systems reveals that
similar systems begin to make a profit at about the
seventh year of operation. This is an important factor in
determining what constitutes a fair rate of return on the

operator's investment.

 

 

 

 

W

TO: Belmont Springs Cable Organizing Group
FROM: Cohen and Associates, Communications Consultants

SUBJECT: Selection of Franchisee

From our examination of existing cable television
ordinances, we found the better ordinances included a
selection of franchisee process that afforded due process
and established a specific procedure for the evaluating of

applicant's proposals.

 

 

96

 

 

W

TO: Belmont Springs Cable Organizing Group
FROM: Cohen and Associates, Communications Consultants
SUBJECT: Franchise Fees

In its 1972 Cable Television Service rules, the
Federal Communications Commission established limits on the
franchise fees that the Operator may pay the city. The
F.C.C. suggested 3% of the operator's gross annual receipts
as an equitable amount. The F.C.C. also said that any com-
munity desiring a higher percentage must justify its claim
in a special hearing; but even then, the Commission is
reluctant to grant a franchise fee of over 5%.

 

 

 

CDNSULIANLREEQRI

TO: Belmont Springs Cable Organizing Group
FROM: Cohen and Associates, Communications Consultants
SUBJECT: Franchise Fee Disbursement

Our review of recent cable television ordinances in
communities similar to the size of Belmont Springs reveals
that even a minimal 3% franchise fee more than covers the
cost incurred by the city in the administration of the
cable television ordinance.

The question then becomes does the balance go into a
general city fund or should it go to further develop the
cable system? Those communities employing the latter

approach have found the results most encouraging.

 

 

97

 

TO: Belmont Springs Cable Organizing Group
FROM: Cohen and Associates, Communications Consultants

SUBJECT: Interconnection

There are or will be other cable television systems
operating adjacent to or in the immediate area of Belmont
Springs. Because school and other administrative districts
overlap, there may be some advantages to have the cable
system in Belmont Springs interconnect with other systems.

Requiring the operator to provide all public channels
of other systems creates a technically and economically
difficult situation. It may be better to require the
operator interconnect with adjacent systems and to be able
to receive at least one channel of another system.

 

 

 

 

W

TO: Belmont Springs Cable Organizing Group
FROM: Cohen and Associates, Communications Consultants
SUBJECT: Number of Channels

Because the franchise creates the structure for cable
television service for the next few years, planners must
take into consideration not only initial cable services but
also those services that may appear years down the road.

The F.C.C. has set a minimum number of channels (20)
for systems the size of Belmont Springs. At the present
time, over the air broadcast channels account for seven.
When one adds the non-broadcast channels required by the
F.C.C. and those services to be proposed by prospective
operators, there is no problem with utilizing twenty

channels.

 

 

98

 

W

TO: Belmont Springs Cable Organizing Group
FROM: Cohen and Associates, Communications Consultants
SUBJECT: Public Service Installations

In determining public service installations, decision-
makers must identify those institutions that can use the
services offered by cable. Caution must be exercised be-
cause too many "free" installations may place a heavy
financial burden on the cable operator and cause him to
raise rates to subscribers or some other counter-productive

measure 0

 

 

 

 

W

TO: Belmont Springs Cable Organizing Group
FROM: Cohen and Associates, Communications Consultants
SUBJECT: Rates to Subscribers

While the F.C.C. does not encourage such practices,
our studies show that there is interest from Belmont
Springs citizens to create a sliding rate scale offering
lower rates to those on limited incomes.

If such a scale is to be created, the City would have

to seek approval from the F.C.C.

 

 

99

 

W

TO: Belmong Springs Cable Organizing Group
FROM: Cohen and Associates, Communications Consultants

SUBJECT: Censorship

This is one of the most controversial and confusing
issues facing cable operators and local communities. The
F.C.C.'s rules are vague and confusing, and the new deci-
sions of the Supreme Court create all new problems. There
will probably be a test case at some time in the near

future.

Until that time we suggest following the F.C.C. rules.

 

 

 

 

LQNSJILIANLREEQBI

TO: Belmont Springs Cable Organizing Group
FROM: Cohen and Associates, Communications Consultants
SUBJECT:

We suggest the creation of a local cable regulatory

body with Specific duties stated in the ordinance.

 

 

100

DECISION EXPLANATION SHEET #4

 

The Decision:

 

The cable television ordinance for Belmont Springs should
read as follows:

Section :
Section II:
Section III
Section IV:
Section V:
Section VI:
Section VII:
Section VIII:
Section IX:
Section X:

wwwwbwwwwn

 

This decision is worth a total of “ points,
point(s) for each section. Have the Group
Recorder enter the number of correct decisions on
your scorecard.

 

 

 

 

 

The Explanation:

Section I: Term of Franchise

Most Of the literature suggests ten years as the appro-
priate length for a cable television franchise. The F.C.C.
has set a maximum limit Of fifteen years, but economic analyw
sis show that systems begin tO make a profit about the seventh
year Of operation, all other variables in balance. Ten years
allows the Operator a reasonable return on the investment;
five years for a metrOpOlitan cable system is probably not

long enough to allow such a return.

101

Section II: Selection Of Franchisee

Alternative B provides a more explicit procedure for
selecting a franchisee; many Of the ambiguities Of A are
explained in greater detail allowing applicants tO react to
the city's requests rather than the city reacting tO the pro-
posals Of others.

Section III: Franchise Fees

The Federal Communications Commission has established
the maximum franchise fee to be levied by cities at 5%. This
prevents the past practice Of Operators Offering unusually
high franchise fees to the city to gain the franchise. The
F.C.C. believes the 3-5% range should more than cover the
costs incurred by the city.

Section IV: Franchise Fee Disbursement

The utilization Of franchise fees by the City should not
be viewed as a way to fill the City coffers. Most literature
suggests that only the actual costs Of administering the
cable ordinance should be deducted from the franchise fees
collected by the City. The remainder should be reinvested in
the cable system to help develOp new programming services.

Section V: Interconnection

In major metrOpOlitan areas, there may be several dif-
ferent Operators serving adjacent communities. To provide a
metro-wide communications system, it is generally desirable
to have adjacent systems interconnect, for school districts

and other activities sometimes overlap. Most metro cable

102

systems are requiring Operators tO interconnect with adjacent
systems and encourage Operators to go beyond adjacent systems.

Section VI: Number Of Channels

 

Alternative A would probably come much closer to fulfill-
ing the cable television needs of Belmont Springs. The F.C.C.
has stated that all major market systems have at least a 20
channel and two-way capacity. Because Of the interest in
cable in Belmont Springs, and the number Of Off-air signals
available, it would appear that forty channels would be much
more appropriate.

Section VII: Public Service Installations

 

Forcing the Operator to wire every school classroom in a
metro area would be placing a very heavy financial burden on
the system. TOO many "free" installations can cause a reduc-
tion in revenue which would force either less cable services
or higher subscription rates. It is customary, however, to
provide at least one drop to schools, libraries, and city
buildings.

Section VIII: Rates to Subscribers

It may be in the "public interest" to establish a rate
system which accurately reflects subscribers” ability to pay.
The cable monthly charge is usually a flat fee, making it
regressive for groups such as senior citizens, handicapped,
and low-income residents. Some adjustment in the rate struc-
ture may extend a valuable service to additional residents

who otherwise might not be able to subscribe.

103

Section IX: Censorship

 

The issue Of censorship is one Of the most controversial
in cable television programming. TO date, no one has been
Specifically designated at being responsible for what goes
over the wire. Until a test case has resolved the issue,
perhaps the most logical policy for local communities is to
require the franchisee to meet the minimum F.C.C. require-
ments on Obscenity, lotteries, and advertising on public
access channels.

Section X: Regulatory Body

Alternative B_designates in much more Specific terms
the role and function Of the body is related to the Operator

and the city.

104

DECISION POINT #5

The Situation:

 

The draft cable ordinance prepared by your group and the
city attorney was typed and duplicated for a public hearing.
The F.C.C. requires proof that a "full public proceeding
affording due process" was undertaken before it will issue a
Certificate Of Compliance.

The Belmont Springs City Manager's Office took appro-
priate steps to notify the public well in advance Of the
hearing. The hearing itself was held in the evening to allow
maximum attendance. At the hearing, several groups responded
to or sought clarification Of various sections Of the ordi-
nance. Certain suggestions were added to the draft and sub—

sequently passed at the next city council meeting.

 

Have a member Of your group pick-up a COpy Of the
Official cable television ordinance from the G.O.D.

 

 

 

With the passage Of the cable television ordinance, the
City Of Belmont Springs is now ready to move from the Legis-

lation Phase to the Operator Selection Phase of cable

 

decisionmaking. The ordinance established the procedures for
selecting the operator(s) and the criteria by which the
operator(s) will be selected. The City Manager has distrib-

uted copies of the Request for Proposal (RFP) to all major

105

cable companies and organizations interested in cable tele—

vision.

 

Have the G.O.D. give your group a copy
Of the RFP. Read it carefully-

 

 

 

At the date when the proposals were to be filed, three
were opened and checked for completeness. One proposal,
submitted by the National Mexican American Anti—Defamation
Committee Of Greater Norwalk, was found to lack the $50,000
Bid Bond and was disqualified. The two remaining proposals
belonged to the American Cable Company and Mountain Communi-
cations Incorporated, both multi—system owners based in
nearby Norwalk.

The Belmont Springs Cable Commission (formerly the
C.O.G.) decided to use a point system tO evaluate the two

proposals.

The Task:

 

Your group will now evaluate the two prOposals using a
point system evaluation sheet. After reading the RFP and
evaluating the two prOposals with the scoring Sheet, your
group will make a recommendation tO the city council as to the
best qualified applicant for the cable television franchise
in Belmont Springs.

NOTE: Engineering Consultants Of Norwalk, professional

telecommunications consultants, have been commissioned

to evaluate the technical standards and maintenance

standards Of the two proposals. You may purchase their
report for $200 from the G.O.D.

106

The Decision:
Complete the following:

Based upon our review and evaluation Of the prOposals,

we recommend that

 

be granted the cable television franchise for Belmont Springs.
List three reasons for your selection:

1.

 

 

 

 

 

 

When this has been completed you may request Decision

Explanation Sheet #5 from the G.O.D.

107

CITY OF
BELMONT SPRINGS

ORDINANCE NO: 179- 73

Cable Television Service

 

108

NOTE

 

On the next few pages is a simplified version Of the
cable television ordinance for Belmont Springs. The actual
ordinance is several pages longer and states the relationship

between the city and the franchisee in much greater detail.

109

ORDINANCE NO: 179-73

AN ORDINANCE AUTHORIZING A NON-EXCLUSIVE CABLE TV FRANCHISE
IN THE CITY OF BELMONT SPRINGS; PROVIDING FOR THE TERM OF THE
FRANCHISE, SELECTION OF THE FRANCHISEE, FRANCHISE PROVISIONS
AND RESTRICTIONS, RATES AND CHARGES, AND FRANCHISE FEES; AND
ESTABLISHMENT OF THE BELMONT SPRINGS CABLE COMMISSION.

SECTION I: Franchise Generally

 

(l) Necessity Of Franchise. NO person, natural or
corporate, or any other entity, shall own or Operate a CATV
system or other system as defined here, in the City Of Belmont
Springs, except by a franchise granted by the City, in the
form Of a franchise agreement between the City and the fran-
chisee, which shall comply with all the specifications of this
ordinance.

 

SECTION II: Term of Franchise

 

(1) Term. The franchise to be granted by the City Of
Belmont Springs pursuant to this Act shall grant tO the
Franchisee the right, privilege and franchise to construct,
Operate and maintain a cable television system in the streets
and roads Of Belmont Springs for a period Of ten (10) years
from and after the grant and acceptance date of the franchise
to be awarded subject to the conditions and restrictions as
hereinafter provided.

SECTION III: Selection Of Franchisee

 

(1) Request for Prgposal. In selecting a franchisee
pursuant to this ordinance, the City shall prepare a Request
for Proposal (R.F.P.) to seek bids for a cable television
system tO be established by the City. This R.F.P. will con-
tain information and instructions relating to the preparation
and filing Of proposals; conditions regarding the.installa-
tion, Operation and maintenance Of a cable television system
under City franchise; and the criteria to be used in evalu—
ating propoSals. -

 

(2) Criteria for Selection Of Franchisee. Applicants
will be evaluated according tO the following criteria:

 

(a) Installation Plan.

 

Preference may be given an installation plan
that would provide flexibility needed to

110

adjust tO new developments, maintenance prac-
tices, and services that would be available
to the subscriber and the community immedi-
ately and in the future.

(b) Rate Schedule.

 

Preference may be given tO applicants with
the most reasonable and equitable installa-
tion and subscriber rate schedule.

(0) Financial Soundness and Capability.

 

The evidence of financial ability in the appli-
cants' proposal Shall be such as to assure
ability to complete the entire system within a
minimum Of five (5) years Of the date the
franchisee receives the F.C.C. Certificate Of
Compliance.

(d) Demonstrated Experience in Operating a Cable
Television System under City Franchise.

 

 

Preference may be given upon evidence to the
applicants0 experience in Operating a cable
television system under City franchise, where
such evidence would Show or tend to show or
confirm the ability Of the applicant to furnish
sufficient and dependable service to the po-
tential public and private users.

(e) Service Provisions.

 

Preference will be given tO applicants demon-
strating system capability in terms Of no-
cost telecasting production facilities and
service available to municipal and educational
institutions and community groups and indi-
viduals.

(3) Hearings, NoticesJ Publications. The Belmont
Spring's City Council shall award a franchise to an applicant
only after a public hearing on the application and proposal,
notice Of which hearing shall be published in a local news—
paper Of general circulation at least thirty (30) days before
the date Of the hearing. Any franchise that is granted shall
be authorized by a Resolution Of the City Council, which
Resolution shall be thereafter published in a local neWSpaper
Of general circulation.

 

 

111

SECTION IV: Franchise Provisions and Restrictions

(1)

 

All franchisee granted pursuant to this ordinance

shall be subject to, and shall expressly indicate that they
are subject to, the following provisions:

(a)

(b)

(C)

(2)

Any franchise granted hereunder shall be subject

to all applicable provisions Of City ordinances,

and any amendments thereto. Should the F.C.C.
modify the provisions Of their Rules and Regula-
tions relating to Federal-local regulatory rela-
tionships, the City shall there amend this ordinance
within six months Of the effective date Of the modi-
fication.

Any franchise granted hereunder shall be subject
to the right Of the City to repeal the same for
misuse, non-use, or failure to comply with the
provisions Of this ordinance, or any other local,
state or federal laws, or Federal Communications
Commission rules or regulations.

Any franchise granted hereunder shall be further
subject to the right Of the City to:

(i) Require extension Of subscriber service
to all residents Of the Chelsea Hills Area
(Service Area 7) within nine months Of the
franchisee"s receipt Of the Federal Com-
munications Commission (F.C.C.) Certificate
Of Compliance, and the City shall further
require extension Of service to all resi-
dents Of the City within five years Of the
date Of the franchisee's receipt Of the
F.C.C. Certificate Of Compliance.

(ii) Establish reasonable standards Of service
the quality Of products, and to prevent un-
just descrimination in service or rates.

(iii) Require continuous and uninterrupted service
to the public in accordance with the terms
of the franchise throughout the entire
period thereof.

Franchise Agreement.
(a) The applicant awarded a franchise by City Coun-

cil Resolution shall execute a franchise
agreement, agreeing to the terms and provisions

112

Of the franchise and Request for PrOposal.

In addition, the franchisee shall, within
thirty (30) days Of the date Of execution Of
the franchise agreement, submit his filing Of
an application for a Certificate of Compliance
with the Federal Communications Commission.

(b) The franchise agreement shall contain such
further conditions or provisions as may be
included in the Request for Proposal and/or
negotiated between the City and the franchisee,
except that no such conditions or provisions
shall be such as to conflict with any provim
sions Of this ordinance or other law.

(3) Number Of Channels. The franchisee"s distribution
system shall initially be capable Of carrying at least forty
(40) channels to television breadth, on dual cable construc_
tion. The system shall also provide simultaneous reverse
direction signal capability for digital, audio, and video
signal transmission on all elements Of the system.

(4) Public Service Installations. It Shall be the
responsibility Of the franchisee to make single installations
of its standard cable television service to public and private
schools within the franchise area, including Garfield Commun-
ity College and the area vocational technical college. Single
installations shall also be made at all fire and police sta-
tions, the City Hall, public buildings, and all public
libraries. Such installations shall be made at such reason-
able locations as shall be requested by the respective units
Of government or educational installations. NO monthly service
charges shall be made for distribution Of the franchisee“s
signals within such facilities.

(5) Interconnection. The franchisee will be required to
interconnect its cable television system with any other system
Operating in an adjacent territory. Such interconnection
shall be made within sixty (60) days Of request made by the
City. For good cause shown, the franchisee may request reason~
able extensions Of time tO comply with the requirements.

 

(6) Right Of City to Purchase Cable System. Upon ex-
piration Of the term Of the franchise, or upon any other
termination thereof, the City, at its election, and upon the
Lpayment to the franchisee Of a price equal to the fair market
‘value of the system, shall have the right to purchase and take
OVer the system.

113

(7) Open Access. The entire system Of the franchisee
shall be Operatedin a manner consistent with the principle
of fairness and equal accessibility Of its facilities, equip-
ment, channels, studios, and other services to all citizens.

 

(8) Emergency Use Of Facilities. The franchisee shall,
in the case Of any emergency or disaster, make its entire
system available without charge to the City or to any other
governmental or civil defense agency that the City shall
designate.

(9) Performance Bond. The franchisee shall maintain,
and by its acceptance Of this franchise specifically agree
that it will maintain throughout the term Of this franchise
a faithful performance bond running to the City, with at
least two sureties approved by the City, in the penal sum Of
$100,000 conditioned that the franchisee shall well and truly
Observe, fulfill and perform each term and condition Of this
franchise and that in case Of any breach Of condition Of the
bond, the amount thereof shall be recoverable from the prin-
cipal and sureties thereof by the City for all damages
proximately resulting from the failure Of the grantee to well
and faithfully Observe and perform any provision Of this
franchise.

 

(lO) Censorship. The franchisee shall comply with exist-
ing F.C.C. regulatiOns pursuant to Obscenity, lotteries and
advertising over public channels, but is otherwise pro-
hibited from censoring any program cablecast over public
channels.

 

SECTION V: Subscriber Rates and Charges

(1) Limitations. The charges made to subscribers for
services Of the franchisee hereunder shall be fair and reason-
able and no higher than necessary to meet all costs Of the
service, and provide a fair return on the original cost, less
depreciation, Of the prOperties devoted to such service.

 

(2) Rate Schedule. An applicant for a franchise shall
submit a full listing Of subscriber and user service rates
to the City for approval. Such listing shall include:

 

(a) Initial tapmin and connection charges
(b) Monthly rates: single and multiple dwellings

(c) Hotels, Motels, Rest Homes and Hospitals

114

(d) Special Class Subscribers
(i) senior citizens

(ii) Welfare recipients

SECTION VI: Franchise Fees

 

(1) Annual Fee. The franchisee shall pay to the City
Of Belmont Springs for each calendar year or fraction thereof
during the term Of this franchise, three (3%) percent Of the
gross annual receipts from Operation Of the proposed service;
provided that every such annual payment shall not be less
than three thousand dollars ($3,000).

 

(2) Disbursement. The City shall disburse eighty (80%)
percent Of the revenues from franchisees to the Cable Commis-
sion for the development Of the public channels. The City
shall retain twenty (20%) percent Of the revenues from franm
chisees in the Cityis general fund to cover City overhead
expenses incurred in respect Of administration Of this ordi-
nance or any franchises granted pursuant thereto.

 

(3) Non-Payment. Failure to pay any fees required by
this section shall result in automatic suspension Of the
franchise granted, and reinstatement thereof may be had only
upon resolution by the City Council, and payment Of the de-
linquent fee or fees plus any interest or penalties as may be
required by the resolution.

 

SECTION VII: Belmont Springs Cable Commission

(1) Commission Establisheg. Before any franchise is
granted, there shall be appointed a commission, to be known
as the Belmont Springs Cable Commission.

(2) Composition. The Commission shall consist Of five
residents Of the City appointed by the City Council. NO
employee or person with ownership interest in a cable tele-
‘vision franchise granted pursuant to this ordinance shall be
eligible for membership on the Commission.

 

(3) Commission Functions. The Commission, in addition
to functions provided elseWhere in this ordinance, shall have
the following functions:

(a) Advise the Council on applications for fran-
chises.

115

(b) Monitor compliance Of franchisee with ordinance
provisions.

(c) Determine general policy relating to the serv-
ices provided tO subscribers and the organizan
tion and use Of access channels.

(d) Plan future uses Of cable television services.

SECTION VIII: Miscellaneous

 

(l) Severability. If any parts Of this ordinance are
for any reason held to be invalid, such decision shall not
affect the validity Of the remaining portions Of this ordim
nance.

116

 

The City Of Belmont Springs takes pleasure in inviting
your organization to submit a proposal for a cable television
system to service the citizens Of this community.

Presently, there is not a cable television system Oper-
ating in Belmont Springs. However, recognizing an immediate
need for cable television services, such an improved recep-
tion and the availability of additional broadcast channels,
and a future desire for expanding cable communication services
throughout the entire city, the Belmont Springs City Council
appointed a Cable Organizing Group to investigate the possi-
bilities of cable television in our city and report their
findings and recommendations. The Group's recommendations
are reflected in the enclosed Request for Proposal.

The R.F.P. contains information and instructions relating
to the preparation and filing Of proposals, conditions and
provisions regarding the Operation Of a cable television sys-
tem under city franchise, and the criteria to be used in
evaluating applicant proposals.

We hope your organization will submit a proposal. If
you have any questions regarding the procedures or provisions
required under the ordinance or R.F.P., please contact my
Office. We look forward to hearing from you regarding your
(proposal at your earliest convenience.

“Yours truly,

Mr. Dale Hammerburg
City Manager

E1101 0

624 SOUTH CREIGHTON AVENUE
(899) 451- 6123

117

REQUEST FOR CABLE TELEVISION SYSTEM PROPOSAL

I. Introduction

The purpose Of this Request for Proposal is tO seek bids
for cable television service to be established under fran-
chise by the City Of Belmont Springs. This RFP contains
information and instructions relating to the preparation and
filing of proposals, conditions and provisions regarding the
installation, Operation, and maintenance for a cable system
under City franchise; and the criteria to be used in evalu-
ating applicant proposals.

II. Preparation Of Proposals

Applicants must include the following information in pro-
posals which must be bound and indexed in some fashion.

Section I: Financial and Organization Description Of
Franchise Applicant

 

 

This section must contain:

A. A financial statement and balance sheet prepared by
a Certified Public Accountant which describes the
applicant's financial condition, responsibility and
resources.

B. A statement including a tenuyear projection of
revenues and expenditures anticipated for the system
and the money tO be received from lending institu-
tions.

§§ction II: Statement Of Experience

 

 

This section must contain a statement of the applicant‘s
history and experience in Operating a cable television
system under municipal franchise which demonstrates the
ability Of the applicant to furnish sufficient and
dependable service to the potential public and private
users.

This statement must include:

A. Geographical locations previously and presently
served by the applicant.

B.

C.

E.

118

The number Of subscribers in each location.

Length Of time each location has been served by the
applicant.

Locations where franchises have been granted but
construction Of the cable television system has not
begun.

Locations where franchise applications for new
franchises are pending.

Section III: Cable Television System Provisions

 

 

This section must address the following requirements
and recommendations for a cable television system.

A.

Construction Provisions

 

The Franchisee must design and construct the cable
system to comply with provisions contained in Ordi-
nance #179-73. Special consideration should be
given to:

Construction Period
Technical Standards
Two-way Capability
Interconnection
Sub-community Service
Studio and Production
Facilities

C‘U‘lwaH
o

O O 0.. 0

Service Provisions

 

The Franchisee must provide at least those services..
stipulated in Ordinance #179-73. As required by the
Federal Communications Commissions, all area tele-
vision broadcast signals must be provided.

Special attention should be paid tO:

1. System Capacity

2. Video Channel Carriage

3. Additional Local Origination Channels
4. Local Programming Plans

Maintenance Provisions

 

A statement of maintenance policies and practices
defined in terms Of the number Of subscribers and/or

119

miles Of cable must also be submitted to include a
description Of:

. Number and types of technicians

. Number Of service vehicles

. Routine preventative maintenance activities
. Average response time for service calls

#3le“

Section IV: Subscriber Rates and Charges

 

 

Each proposal must contain the following schedule Of
proposed rates and charges as set forth in Section V
Of the cable television ordinance:

1. Initial tap-in and connection charges
2. Monthly rates: single and multiple dwellings
3. Hotels, Motels, Rest Homes and Hospitals
4. Special Class Subscribers
a. Senior Citizens
b. Welfare Recipients

III. Standards Of Evaluation

 

Pursuant to Section III Of Ordinance #179673, applicants
will be evaluated according to the following priorities:

A.

Financial Soundness and Capability

 

The evidence Of financial ability required in the
applicant's proposal shall be such as to assure
ability tO complete the entire system within a
maximum Of five (5) years Of the date the fran—
chisee receives the FCC Certificate Of Compliance.

Demonstrated Experience in Operating a Cable Telew
vision System Under City Franchise

Preference may be given upon evidence Of the appli-
cant's experience in Operating a cable television
system under City franchise, where such evidence
would Show or tend to show or confirm the ability Of
the applicant tO furnish sufficient and dependable
service to the potential public and private users.

Installation Plan

 

Preference may be given an installation plan that
would provide flexibility needed to adjust tO new

120

developments, maintenance practices, and services
that would be available to the subscriber and the
community immediately and in the future.

D. Service Provisions

Preference will be given to applicants demonstrat-
ing system capability in terms Of no—cost telecast-
ing production facilities and service available to
municipal and educational institutions and community
groups and individuals.

E. Rate Schedule

 

Preference may be given to applicants with the most
reasonable installation and subscriber rate schedule.

IV. Rights Of the City

Any person, firm, or corporation able to meet the
requirements Of this RFP and Ordinance #179-73 is encouraged
to respond tO this Request for Proposal.

The City Of Belmont Springs reserves the right to reject
any or all applications, to accept modifications Of any
applicant's original bid, to waive informalities and irregu-
larities and to accept the most advantageous application sub-
mitted as so desired by the City.

121

CITY OF BELMONT SPRINGS
CABLE TELEVISION PROPOSAL

EVALUATION FORM

NAME OF FIRMS: Firm A:

 

Firm B:

 

 

INSTRUCTIONS

This evaluation form will compare the CATV pro—
posals submitted pursuant tO Ordinance #179-73
and the RFP. All prOposals will be evaluated
according tO the criteria established in the
Ordinance and RFP.

After reviewing the reSponse of each organiza-
tion tO the evaluation criteria, score each
applicant according to the following scale:

5 points: Generally given to organization
whose proposal is superior to
the other applicant(s) and
meets minimum Ordinance stan-
dards.

4-0 points: Degree to which the other appli-
cant(s) meet evaluation criteria.

 

 

 

II.

III.

IV.

122

Financial/Organizational Soundness

 

and Capability

 

A. Balance Sheet Strength

B. Construction Loan Secured?

Statement of Experience

 

A. Existing franchises and subs

scribers

B. Pending Franchises

Cable System Provisions

A. Construction Provisions

. Construction Period

. Technical Standards

. Two-way Capability
Interconnection
Sub—community Service
. Studio and Production

Facilities

0

O

ONU'lnbbJNI-J

B. Service Provisions
1. System Capacity
2. Video Chennel Carriage

3. Additional Local Origina~

tion Channels

4. Local Programming Plans

C. Maintenance Provisions

1. Overall maintenance service

 

Subscriber Rates and_gharg§:
A. Installation Rates
B. Monthly Rates

C. Special Class Subscribers

TOTAL EVALUATION SCORE

'Firm A

(Score

mmm .2"

Firm B
Snfl)

MCI
PRC-PSAL

 

124

Mountain Communications, Inc.
1320 CHELSEA TOWER NORWALK

The Honorable Mayor and City Council
City Of Belmont Springs

Gentlemen:

Mountain Communications Incorporated herewith respectfully
submits its application, for a franchise to operate a CATV
system in the City of Belmont Springs.

MCI'S corporate Offices are located in nearby Norwalk to
provide an immediate contact point for the many communities
in the Norwalk metro area who are presently being served or
will be served MCI'S CATV services. The corporation has
franchises in three communities in the immediate area.

Mountain Communications Incorporated has over twenty years
Of experience in the CATV industry and assures the City Of
Belmont Springs the technical, managerial, construction and
financial knowledge to provide cable television service
second to none in the nation.

Mountain Communications Incorporated believes it has been
responsive to the City's instructions; however, we would
welcome an Opportunity to provide further information con-
cerning our application by appearing personally before the
City Council or Cable Commission tO furnish any supplemen-
tary data you may desire.

Respectfully submitted,

MOUNTAIN COMMUNICATIONS INCORPORATED

William L. Hollingsworth
President

125

SECTION 1

126

MOUNTAIN COMMUNICATIONS INCORPORATED
BALANCE SHEET

 

 

ASSETS
1972 1971
CURRENT ASSETS "““ “"
Cash $ 2,141,896 $ 1,783,901
Commercial paper 2,350,126 1,539,058
Accounts and notes receivable,
less allowance of $25,500 377,692 349,824
Accounts receivab 1e from
affiliates 498,909 717,827
Inventories—-at lower Of cost
(firstwin, firstwout method)
or market 319,306 310,175
Prepaid expenses 345,839 590,529
TOTAL CURRENT ASSETS 6,033,768 5,291,314

INVESTMENTS
Investments ($1,219,642 and
$783,049) in and advances to
companies 50% owned or less 1,462,485 1,125,652

PROPERTY, PLANT, AND EQUIPMENTw
on the basis Of cost

Buildings 1,857,878 1,690,251
Distribution systems, equipw

ment and improvements 34,479,455 25,955,329
Theatre and related equipment 7,672,489 7,564,054

Allowances for depreciation
and amortization (deduction) (15,4171058) '(12j895,902)

 

 

28,592,764 22,313,732
Construction in progress 4,779,255 3,727,043
Land 1,858,442 " 1,715 890

 

”35,230,461 ‘27, 5 ,6

COMMUNITY ANTENNA TELEVISION
("CATV”) FRANCHISES, at

cost less amortization 643,215
OTHER ASSETS
Unamortized debt expense 714,479 405,653
Costs in connection with
CATV franchise applications 500,979 476,124

Cost over underlying equity
in connection with the

 

 

acquisition of companies 128,484 128,484
Federal income tax claims 182,729 182,729
Notes receivable due beyond

one year 386,500 291,272
Unamortized commissions paid

for new subscribers 335, 217 173, 980
Other L: 142, 269 “‘ 298 L855

2, 390, 657 ' 1,957,097

 

 

fiiérlégriié -‘§36.l30,728

 

 

 

127

LIABILITIES AND STOCKHOLDERSo

CURRENT LIABILITIES
Notes payable
Trade accounts payable
Accrued expenses:
Interest
Other
Subscriber deposits and advance
payments
Federal income taxes
Current portion of longwterm
debt
TOTAL CURRENT LIABILITIES

LONG-TERM DEBT--less portion
classified as current

DEFERRED FEDERAL INCOME TAXES
MINORITY INTEREST IN SUBSIDIARIES

COMMITMENTS AND CONTINGENT
LIABILITIES

STOCKHOLDERS' EQUITY
Preferred Stock—-par value $5.00
a Share:

Authorized 1,000,000 shares;

none issued
Common Stock--par value $.03
a share:

Authorized 4,160,000 shares
issued (including 340
shares in treasury):

l972~m2,395,136;
l97l-~2,395,001
Other capital
Retained earnings

Less cost of 340 common
shares in treasury

1972

 

$ 166,667
1,175,770

544,661
741,102

138,689
218,533

1,076,128

 

_'4,061,550

25,408,338
1,367,127

437,201

71,854
6,038,417
8,381,199

'“Ii,491,470

5,100

 

14,486,370

 

.iiirlégriéé

EQUITY

1971

$ 260,698
1,944,177

76,968
859,796

93,562
416,218

1,829,905

 

5,481,324

16,261,486
1,037,996

361,933

71,850
5,867,722
7,053,517

 

12,993,089

'5,100

 

12,987,989

 

$36,130,728

 

 

128

PROJECTED OPERATING STATEMENT

City Of Belmont Springs

Assumptions:

 

l.

8.

Approximately 33,000 homes are located in the franchise
area and the expected home growth will be 1% per year.
Construction will be complete within three years Of grant—
ing the franchise and receipt of a certificate Of com-
pliance from the FCC.

The completed cable plant initially will consist of 199
aerial miles and 154 underground miles with about three
miles of plant added each year.

A franchise tax Of 3% based on gross receipts.

Fifty percent maximUm saturation achieved in the fourth
year.

Microwave charges Of approximately $5,000 per month for
the importation Of distant Signals.

Rate Structure as follows:

Primary Outlet $6.95
Second Outlets 2.50
Connection Charge 9.95
Reconnect Charge 5.00
Move Outlets 5.00

Converter will be used at an estimated cost Of $30 per

outlet.

129

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131

M C I FINANCIAL SUPPORT

 

At this early stage Of negotiations Mountain Communica-
tions Incorporated has not been able to secure a commitment
from a financial institution for the financing Of the con—
struction and Operation of the cable television system for
Belmont Springs. Until such time as the Operating circum—
stances Of the system, including such matters as subscriber
rates are determined, firm financing arrangements are not
feasible.

MCI, however, has a very good credit rating and will
make every effort tO secure a financial commitment as soon

as the above details are finalized.

132

SECTION 2

133

CABLE SY STEM EXP ERI ENCE

 

Mountain Communications Incorporated has many years Of
experience in Operating CATV systems under municipal fran—
chise. The following are locations Of MCI systems, numbers

Of subscribers served and when service commenced in that area.

 

 

 

COMMENCED

STATE SUBSCRIBERS OPERATION
ARKANSAS 16,210 1959
ARIZONA 11,876 1962
CALIFORNIA 41,748 1966
FLORIDA 23,161 1969
KANSAS 5,904 1961
KENTUCKY 10,700 1962
MISSISSIPPI 11,432 1958
MISSOURI 9,973 1964
OKLAHOMA 28,614 1951
NEW MEXICO 8,434 1965
TEXAS 50,133 1957

TOTALS 212,242

Mountain Communications Incorporated has been granted
franchises in twentywnine (29) communities where construction
of the CATV system has not begun, including three in the
greater Norwalk area and seven in Lincoln County.

Many Of the communities have been effected by the 1966
FCC Second Report and Order which restricted the growth of
cable television systems in the nationis 100 largest te1e~
vision markets (Norwalk is in the 35th largest market). This
freeze lasted until 1972 when new rules allowed CATV to

develop in large markets. With the inception Of new FCC

134

rules, MCI filed new applications for Certificates of Comm
pliance. Many of these applications are presently under

consideration and should be resolved within the next few

months.

135

SECTION 3

136

CABLE TELEVISION SYSTEM PROVISIONS

 

Mountain Communications Incorporated proposes to cone
struct a cable communications system for Belmont Springs
which will be capable of delivering 60 channels of service
to the subscriber initially and will also be tw0wway
capable.

The following are details of the Master Plan which
includes: service coverage area; construction schedule;
details of technical standards; construction practices;
two~way capacity; underground and overhead installation plans;
interconnect; subwcommunity service; studio and production
facilities and program plans; system capacity and expansion
capabilities; channel allocation; FM, stereo music and other
services to be offered; maintenance and customer service

provisions.

137

CONSTRUCTION PERIOD

 

Construction of the system will begin within thirty (30)
days following receipt of all necessary utility permits,
private easement, licenses, FCC authorizations and avail:
ability of distant signals. The Chelsea Hills area will be
built immediately with receipt of utility permits, easements
and FCC authorization.

Service to the first customer will be available within
one hundred eighty (180) days after construction has begun.

The following construction and energizing schedule will be

 

 

followed:
AREA ENERGIZE SCHEDULE

Service Area 7 Will be energized six (6) months from
start of construction (Cle=Construc~
tion Day -1)

Service Area 6 Will be energized in twelve (12)
months from CD a 1

Service Area 5 Will be energized in thirty (30)
months from CD e 1

Service Area 4 Will be energized in thirtywsix (36)
months from CD _ 1

Service Area 3 Will be energized in eighteen (18)
months from CD a 1

Service Area 2 Will be energized in twentynfour (24)
months from CD _ 1

Service Area 1 Will be energized in fortywtwo (42)

months from CD m l

138

TECHNICAL STANDARDS

 

Mountain Communications Incorporated has designed a
system that will meet all City and FCC technical standards.
The system will have one head end location which will be
tied together by both microwave and two~way cable to the
(presently) three other cable systems in the greater Norwalk
area.

MCI engineers have designed what we believe to be one
of the most advanced CATV systems in the United States to
date. The system is capable of delivering all presently
economically feasible services of cable as well as the many
new services presently being researched.

We believe an analysis of the following specifications

will verify our claim.

139

EQUIPMENT SPECIFICATIONS AND PARAMETERS-

 

I. Trunk Line Equipment

 

A.

B.

Noise figure = 11.0 db
Cross Modulation Distortion (based on NCTA test
method, 30 channels)

XM = -89.0 db @ + 33/31/29/26 dbmv output levels

Second Order Distortion
2nd Order = =79.0 db @ + 33/31/29/26 dbmv

Frequency response flatness = i .25 db

AGC Control

Output level change i .50 db for 1.4 db cable
equivalent input change

Output level change i .25 db for :‘2 db cable
equivalent input change

 

Bandwidth
Trunk A, downstream only 50-270 MHz
Trunk B, downstream 174-270 MHz
Trunk B, upstream 5‘108 MHz
Cable
QXSEEEEQ "Underground
Impedance 759 i l 759 i 1
Return Loss 28 db minimum 30 db minimum
Attenuation
@ 270 MHz
@ 49.5°F .82 db/lOO ft. 1.04 db/lOO ft.

Velocity of
Propagation 95% 82%

140

II. Distribution Equipment

 

A. Bridger Amplifiers
Noise figure

Cross modulation
(30 channels)

Second Order
Distortion

12.0 db

«67.0 db @ + 43/41/39/36
dbmv output level for one
or two outputs

w67.0 db @ + 40/38/36/33
dbmv output level for four
outputs

w70.0 @ same levels as
above

B. Line Extender Amplifiers

Noise figure
Cross modulation
(30 channels)

Second Order

AGC Control

Operational Gain

13.0 db

=7l.0 db @ + 40/38/36/33
dbmv output level

-70.0 db @ + 40/38/36/33
dbmv output level

+ .75 db output change for
3 db cable input change

+
i .5 db output change for
: 2 db cable input change

C. Specifications common to all distribution

amplifiers

Bandwidth in forward direction

Bandwidth in reverse direction

D. Return Amplifiers
Bandwidth

Frequency response flatness

Pilot tone frequency

AGC Control : db output change for :‘4 db cable
equivalent change at 270 MHz

50-270 MHz
5—30 MHz

5~35 MHz
i .25 db
35.25 MHz

141

III. Head End Equipment

 

A. Hetrodyne processors

Noise figure 7.5 db max.
Spurious Signals -72.0 db max.
Frequency stability : .0015%

Frequency reSponse
flatness + .25 db

B. Modulators

Differential phase 2° max.

Differential gain 1 db max.

Group delay conforms to FCC pre—
distortion requirements

Frequency Stability : .0015%

Spurious Signals =72.0 db max.

In addition to the above system parameters and specifi~

cations, the following requirements will be met:

1.

The system will provide +9 to +20 dbmv, as measured
across 75 ohms on each channel measured at the con-
nection to the TV set.

The overall frequency reSponse of the system will be
flat i1.5 db on the trunk system and :3 db (include
ing trunk contribution) on the distribution system

@ 70°F.

The frequency reSponse of the trunk and distribution
system will be flat :1 db across the 6 MHz bandw

widths of a television signal carried.

142

TWO- WAY CAP’AB I‘LI TY

 

Two-way capability will be provided as a part of the
cable system developed by Mountain Communications Incor—
porated. In the distribution system, the spectrum space
from 5-30 MHz will be used as a return path and the trunk

system, the spectrum from 5&108 MHz.

143

INTERCONNECTION

 

As stated earlier in this application, Mountain Communiw
cations Incorporated presently holds franchises for three
communities adjacent to Norwalk and is currently involved in
negotiations with the Norwalk City Council for the CATV fran-
chise to serve that city.

When granted franchises in Norwalk and Belmont Springs,
MCI will be able to provide via microwave and two—way cable
interconnection with not only contiguous systems but with our

system in the entire greater Norwalk area.

144

SERVICE TO SUB‘COMMUN‘I TIES

 

Mountain Communications Incorporated is willing to dis-
cuss with the Belmont Springs City Council and/or Cable Com-
mission the possibility of establishing services to sub«
communities within Belmont Springs, such as the Latin coma
munity. The system designed by MCI will allow for such
services.

We do, however, believe it is the responsibility of the

Belmont Springs citizenry to determine the sub-communities.

145

STUDIO AND PRODUCTION FACILITIES

Mountain Communications Incorporated has many years of
experience in the design and construction of studio and prOw
duction facilities for cable television systems. The com“
bined office-studio facility described on the next few pages
more than meets the requirements established by the City of
Belmont Springs.

In addition to the studio and production facility, MCI
proposes to provide technical assistance to the citizens of

Belmont Springs to ensure maximum use of the facility.

146

FACILITY EQUIPMENT LIST

 

Below are the kinds and types of equipment that will be

used for the studio and production facility:

Audio System

 

Item Quantity ‘Model/Type

1

1

2

 

1

10

 

TM

EV

EV

EV
Spotmaster
Spotmaster

Gates,
Collins,

Sparta, etc.

Description

 

Audio Mixing Console, with five
mixing channels, fourteen avail-
able inputs, cueing, VUmeter,
master gain

Microphones, low impedance,
omni-directional

Microphone, lavalier, low imped-
ance

Microphone Stands
Audio Cartridge Deck
Cartridge Tapes

Professional broadcast quality
turntable.

Color Film Chain

 

 

 

Item Quantity Model/Type
1 TM
1 Kodak
2 Kodak
2 TM
1 TM

Description

 

Three-way optical Multiplexer

Carousel 2x2 Slide Projector
with seven-inch lens

16mm Film Projector with four—
inch lens for use with TMM—ZOBB

Remote Control Module for STOP,
RUN, and SHOW.

Remote Control Module for selec-
tion of projector and sequencing
of slides

Item Quantity» Model/Type

l

10

11

12

13

147

Video Control System

 

 

1

 

TM

TM
TM

TM

TM

TM

TM

Tektronix

TM

TM

Conrac

Conrac

TM

'Description

 

Broadcast Video Switcher with
special seven-inch control panel

EIA Color Sync Generator
Bar Dot Generator

Pulse Distribution Amplifier with
builtein power supply and con—
nector panel to supply pulse from
EIA color sync generator to all
cameras and switcher

Video Distribution Amplifier
with built-in power supply and
connector panel for sub-carrier
and bar dot generator distribu-
tion

Six-input switcher, bridging
type to select inputs for wave-
form monitoring

Video Distribution Amplifier to
supply waveform monitor from
switcher to eliminate transients

Waveform Monitor

Rack Frames for distribution
amplifier and 6x1 switchers

Blank Panel Filler

Dual nine-inch Solid State Moni-
tors for continuous monitoring
of both live cameras

Color Monitors, nineteen-inch

Fournposition intercom system,
camera #1, camera #2, video con-
trol console, audio control
console

Item

 

14

15

16

17

 

 

Quantity Model/Type
1 Sony
1 Tektronix
1 TM
1 TM

148

Description

 

Twenty-inch modified Color
Monitor/Receiver for studio
monitoring of video or RF

cablecasting channel output

Vectorscope, rack mount

Video/Audio Distribution
Switcher

Special Effects Generator

149

 

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150

SERVICE PROVISIONS

On the following pages, Mountain Communications Incor-
porated discusses in detail the capacity of its proposed
cable television system for Belmont Springs, the broadcast
and non-broadcast channels to be carried on the system, and

our plans for local cable television programming.

151

SYSTEM CAPACITY

 

The state of the art of the CATV industry has advanced
to an era whereby our service has become much more than the
providing of a community antenna reception service to only
deliver available broadcast signals. Technically, the capan
city to deliver a large number of channels to a household
has been available for some time; however, additional enter-
tainment and information programming has not been produced
and delivered to subscribers in the past to any significant
extent.

MCI has designed a cable system that will deliver sixty
(60) channels of television service, provides for two-way
capability, FM radio station carriage and data capacity
channels. These services may be expanded as new cable serv-
ices become economically feasible.

To a system with this capacity, MCI proposes to add many
new and exciting program services which are explained later

in this section.

152

VIDEO CHANNEL CARRIAGE

 

The following is a listing of the channels to be offered
by Mountain Communications Incorporated via its dual trunk,
cable television distribution system, providing diversified
services to householders, local government, educational insti~
tutions, community groups, and local commercial interests:

Broadcast Channels

 

ABC - TV : Norwalk
CBS - TV : Norwalk
NBC - TV : Norwalk
Independent TV : Norwalk
Public TV : Norwalk
Independent TV : Imported
Independent TV : Imported

Non—Broadcast Channels
Public Access Channel
Government Channel
Educational Channel

 

FM Radio Channel

A full range of FM services will be provided, MCI will
make engineering tests and select those channels to be
carried on the cable system.

 

Emergency Alert '

An Emergency Alert system will be installed to provide
for instant access by proper authorities of the City to
give public instruction in case of emergency of local,
state or national magnitude. The system will have the
capability to interrupt all public channels on the cable
simultaneously.

 

153

ADDITIONAL LOCAL ORIGINATION CHANNELS

Mountain Communications Incorporated is fortunate to
have many years of experience in supplying subscribers with
additional local origination channels. Our research facility
has developed what we believe to be an excellent selection

of helpful, informative channels.

Channel Service

News Headlines Channel (Press Wire Service)
Local News Channel

Library Channel

School Menu Channel

Weather Information Channel

Special Lease Channel

Sports Score Channel

 

\ICNU'IDDUJNI'“
ooooooo

It should be noted that the above services provide only
an introduction to the potential uses of the cable system by
the Belmont Springs citizenry. Many new services have been
introduced by citizen suggestions at our other franchise sites
and provided without additional subscriber cost.

MCI proposes to work closely with the Cable Commission
after being granted the franchise to develop and maintain the
best possible cable services for Belmont Springs citizens at

the lowest possible cost.

154
LOCAL PROGRAMMING PLANS

Because Belmont Springs would join at least three other
MCI operated cable systems in the greater Norwalk area, it
would enjoy the benefits of a large local programming bank
to be established for the area. Mountain Communications
Incorporated proposes to provide a well-rounded array of
programming significantly different from broadcast television
for all age groups. Below are samples of MCI system produced

programming:

H
O

The City Report
Children's Discovery
Mid-day Matinee
Games People Play
Science Fair

Cable High School
How to . . .

SErmon of the Day
High School Sports
Call of the Wild

OkDCDQQWubL/ON
o

O O O O O O O O

[._I

In addition, Mountain Communications Incorporated has
purchased several off-network series that have been proven to
be family favorites for many seasons. A brief sample of

these series are as follows:

Adams Family Movie Classics
Batman Patty Duke

Big Valley Ponderosa
Gilligan"s Island Roller Derby
Hogan's Heroes Star Trek

Leave It to Beaver Wrestling Stars

Again, MCI emphasizes that it wishes to serve its sub-

scribers the best way possible. MCI will seek and listen to

155

citizen input regarding the plans for local programming.
In addition, local citizens will be urged to develop their
own new programs. MCI will provide all training and equip~
ment, as necessary to launch new programming services of

interest to Belmont Springs citizens.

156

MAI NTENANCE PROVI S I ONS

 

Sufficient manpower will be maintained at the Belmont
Springs system to provide the best possible service.

Mountain Communications Incorporated is proposing using five
(5) qualified service technicians equipped with vanntype
trucks and adequate test equipment. This test equipment will
include such items as field intensity meters, voltwohm meters,
test television receivers, summation sweep equipment, spec—
trum analyzer, time domain reflectometer, frequency counters,
return loss bridge, etc. In addition, available at MCI'S
Norwalk office will be complete facilities for evaluations,
measuring and trouble shooting all equipment utilized in
Belmont Springs.

These five technicians will be under the direction of a
highly qualified and experienced Chief Technician who will
oversee all technical operations in Belmont Springs. 'These
numbers are minimum, of course, should the need become apparn
ent, MCI will add as many technicians as needed to provide
Belmont Springs with excellent cable television service.

Preventative maintenance will include periodic balance
of the system on a three to six month‘s interval, and on a
yearly basis, a summation sweep of the entire system will be
done. In addition, on a monthly basis signal to noise ratio,

hum, and a visual evaluation of pictures will be done on each

157

major trunk line. _The headend will be checked at weekly inn
tervals for levels, signal to noise ratio, and a visual
evaluation of picture will be done. In addition to these
periodic measurements, on a yearly basis, the FCC proof of
performance will be done on the system. This proof includes
frequency stability, frequency reSponse, radiation from
plant, signal levels, spurious beats, etc.

The average response time for service calls will be less
than 24 hours. In most cases, these calls will be answered
the same day, but in no case later than the next working day.

In addition to these technical personnel, enough instalm
lers and constructin personnel will be maintained to meet the
demands of the system. These personnel will be adequately
equipped with the tools and vehicles required to perform
their work.

Below are itemized the number and types of vehicles and

test equipment for Belmont Springs.

 

VEHICLES
1 each Station Wagon Manager
1 each Station Wagon Chief Technician
5 each Van Trucks Service Technicians
1 each Ladder Truck Maintenance and Construction
Dept.
*8 each Van Trucks Installation Department
2 each Pickup Trucks Ongoing construction and

city growth

*Variable, depending on installation load

SERVICE EQUIPMENT

 

1

each

each
each
each
each
each
each
each
each
each
each
each
each
each

each

158

Sweep Generator with summation sweep
capability

Sweep Receiver with long persistence CRT
Field intensity meters

Time domain reflectometer
Spectrum analyzer

Variable return loss bridge
General purpose volt/ohm meter
Color test television receivers
Marker generator

Precision variable 75 attenuators
General purpose oscilloscope

Wide band oscilloscope

Video test signal generator
Waveform monitors

Vectorscope

159

SECTION 4

160

MONTHLY RATES AND SERVICE CHARGES

The following are the rates proposed by the Mountain
Communications Incorporated to support the previously menu
tioned cable communications system for BelmontSprings.

In a discussion with our legal council, we found that we
are prohibited by FCC statute from charging rates which in
any way discriminate. Therefore, until the FCC relaxes its
current regulations on rates, Mountain Communications In—
corporated is unable to provide special rates for senior

citizens and welfare recipients.

I. Residential Rates and Charges (1-5 living units):
a. Building connection charge Time and materials

b. Installation charge in each
living unit:

1. First TVmFM outlet $9.95

2. One additional TV—FM outlet
x installed at same time as
first outlet 5.00

3. Each additional TVwFM outlet
installed at a different time 7.50

c. Monthly service charge (including
40 channel converter)

1. First TV—FM outlet in each
living unit 6.95

2. Each additional outlet per
living unit 2.50

161

II. Hotel, Motel and Other Transient Rental Establishments**:
a. Building connection charges Time and materials

b. Installation charges:
1. First TV-FM outlet Time and materials

2. Each additional TVmFM
outlet Time and materials

c. Monthly service charge (includes
30 channel converter)

1. Each TV-FM outlet $3.00

**Billed on a Bulk Basis

III. Apartments and Trailer Parks**8
a. Building connection charges ‘ Time and materials
b. Installation charges:
1. First TVmFM outlet Time and materials

2. Each additional TVWFM
outlet Time and materials

c. Monthly service charge (includw
ing 30 channel converter)

1. l to 5 TVwFM outlets $6.95 each
2. 6 to 49 TVSFM outlets 6.00 each
3. 50 to 99 TVmFM outlets 5.50 each
4. 100 or more outlets 5.00 each

**Billed on a Bulk Basis

163

AMERICAN CABLE COMPANY. INC.

 

224 Kent Plaza Norwalk 88803

The Honorable Harlan L. Adams
Mayor
City of Belmont Springs

Dear Mayor:

Please accept this prOposal as our application for a
cable TV franchise for the City of Belmont Springs.

Contained in this prOposal is a summary of our commit-
ment to the City of Belmont Springs based upon both the
requirements the City has set down and ACC's operating
philOSOphies.

Our organization stands ready to anwer any questions
that might arise concerning the contents of this application.
We further advise that we are prepared to provide your City
with cable television facilities and service in accordance
with the highest standards of the CATV industry.

Therefore, we earnestly solicit your favorable consid—
eration for the privilege of doing business in the City of

Belmont Springs.
Sincerely,

AMERICAN CABLE COMPANY

James W. Ward
General Manager

164

AMERICAN CABLE COMPANY

Corporate Profile

Name: American Cable Company

Address: 224 Kent Plaza

Norwalk 88803
Structure: Corporation

Corporate Officers and Directors;

President Mr.
Ex. Vice President Mr.
Secretary Mr.
Treasurer Mr.

Donald Robinson
Lawrence Mitchell
Walter Bandy

Thomas Herzog

ACC STATISTICAL PROFILE a 1972

Number of operating systems

Number of subscribers*

Average number of subscribers per system

Range of system size (in subscribers)

Total potential subscribers serviceable
from existing plant

Saturation percentage for existing plant

Total potential subscribers in
franchised areas

Miles of plant currently under
construction

Additional franchises owned but not
operating and not under construction

138
318,000

2,750

650 to 12,800

775,000
46%

1,200,000
4,800
3, representing

15,700 potential
subscribers

*Total subscriber count represents a compilation of each sys«
tems total monthly service revenues divided by that systemUS

standard residential monthly service fee.

SECTION I

166

AMERICAN CABLE COMPANY

Balance Sheet

1972 and 1971

 

 

ASSETS
1972 '1971
amounts in thousands
CURRENT ASSETS:
Cash $ 3,894 $ 3,495
Notes and accounts receivable.
Trade 798 422
Affiliates 215 240
Other 181 340
1,194 1,002
Less allowance for doubtful
receivables 50 41
1,144 961
Prepaid expenses 150 192
Total current assets 5,188 "4,648
INVESTMENTS AND ADVANCES:
Investments, at equity:
Unconsolidated subsidiary 240 115
Affiliated companies '645 385

885 ‘500

Advances:

Unconsolidated subsidiary 2,401 41
Affiliated companies 187 241
2,588 282

PROPERTY, PLANT AND EQUIPMENT,
AT COST: 50,204 33,858
Less accumulated depreciation 12,130 ‘8 889
38,074 24,969

OTHER ASSETS:
Franchises, permits, licenses,
microwave service contracts

and route costs 24,652 9,934
Financing costs 456 468
Deferred compensation 183 256
Other, principally prepaid interest 254 321

I 25,545 ‘ 10,979

s 72,280 $ 41,378

 

167

LIABILITIES AND STOCKHOLDERS'

EQUITY

 

CURRENT LIABILITIES:
Current installment of longmterm
debt
Trade accounts payable
Accrued expenses
State income taxes
Subscribers' advance payments
Total current liabilities

DEFERRED INCOME TAXES

LONG-TERM DEBT, EXCLUDING CURRENT
INSTALLMENTS

SUBORDINATED CONVERTIBLE DEBENTURES
DUE STOCKHOLDERS

MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES

STOCKHOLDERS8 EQUITY:

Preferred stock of $1 par value
per share.
Authorized 1,000,000 shares;

none issued

Common stock at $1 par value
per share. Authorized 5,000,000
shares; issued 3,573,813 in 1971
and 2,856,262 in 1970

Additional paid-in capital

Retained earnings

1972

1971

amounts in thousands

$ 3,146
1,909
634

38

370

 

6,097

 

548

 

36,329

 

1,000

 

114

 

3,574
23,223
1,390

 

28,192

 

:'$ 72,280

 

-.

$ 2,139
551

326

258
3,274

 

 

349

 

20,986

 

1,000

 

25

 

emu-za-

2,856
12,499
' 389
15,744

 

 

:'$ 41,378

 

 

II.

168

PROJECTION OF REVENUES AND EXPENDITURES

Overall Description

 

A.

PrOposed plant mileage 300 (90% aerial_10% under—
ground).

Homes behind plant 34,000—~homes per mile 113.
Estimated mileage for entire franchise area 300.
Estimated homes in the total franchise area 34,000.

Mileage to complete the franchise area—-0 miles“-
except as city grows.

Distribution Plant--Capital Costs

A.

Distribution System

1. 300 miles of plant completely meets existing
distribution requirements.

2. Plant cost figure is for a redundant .750 inch
trunk with two-way capability. 10% underground.

3. 10,200 drops based on expected first year pene-
tration of 30%. Standard industry unit price for
drOp materials is $15. Standard ACC cost for
marketing and installation is $26.

4. 11,333 taps based on 3 drops per tap for 34,000
potential subscribers.

5. Cost of ACC engineering services. Includes
mapping, design and contract management.

6. Converters-«required for high channel capacity
and to compensate for loss of channels due to
ambient signal. Computed at $30 per subscriber
and $30 per each additional outlet (projected
for 35% of subscribers).

Headend Equipment

Signal processors for off—air signals.

6 antennas (assumed to be roofntopwno tower).
7 modulators for local origination signals

2 demodulators for microwave signals.

2 remodulators for microwave signals.
Couplers, leads, racks and other miscellaneous
equipment.

mUlthI-J
oooooo

III.

C.

169

Leasehold Improvement-~Estimate based on renting
building for offices and studios, including headend
Space.

Operations Projection

A.

Subscribers-~Based on estimated penetration as
follows:

Year 1 2 3 4 5 6 j 9 10

8
30% 40: 45: 5‘63? 558 0% 65% 6‘58 6 % 65%

 

Revenues

1. Service income at $6.00 per month.

2. Installation at $9.95.

3. Additional outlets for 35% of all subscribers in
any given year at $1.00 per month service charge.

Operating Expense
1. Tech salaries.

a. l manager at $12,000 per year, progressing to
$14,000. Annual increases projected.

b. l chief tech at $10,200 per year, progressing
to $12,000. Annual increases projected.

c. 7 installer/techs initially at $6,000 per
year, progressing to $7,200 per year. Add 2
installer/techs each in years two, four, and
six for an end total of 13. Annual raises
projected.

2. Converter maintenancewwcomputed at 10% of the
cost of all converters in use per year.

3. Pole Rent-“computed for 40 poles per mile at $4
per pole annually.

4. Vehicle Repair-acomputed at $240 per vehicle
annually. Total amount increases by $480 in each
of years two, four, and six when 2 vehicles are
added in each of those years.

5. Gas and Oil--computed at $600 per vehicle annually.
Total amount increases by $1,200 in each of years
two, four, and six when 2 vehicles are added in
each of those years.

6. Cablecasting Salaries--computed for 4 full-time
and 5 part-time employees. Annual raises are

7.

170

projected for full-time employees only.
1 - Program Director - $10,200 Initially
3 - Full-time Assistants - $9,400 (ea.)
Initially
5 - Part—time Assistants - $4,500 each.
Microwave Service~-cost for bringing 2 independent
stations to Belmont Springs.

General Expense

1.

Office Salaries-m7 Clerks initially at $4,800

per year each, progressing to $5,400. Add 2
clerks each in years two, four, and six for an
end total of 13. Assumption is that l clerk will
be required for approximately 1,500 subscribers
on a hand-billed system, and that excess salar-
ies for clerks, in the event of an automated
billing process, would approximately compensate
for automation costs. Annual raises projected.
Office Supplies-~computed at $300 per clerk
annually.

Postage--computed at $1 per subscriber annually,
which amounts to 8.3¢ per month.
Advertising-~computed at $3 per subscriber gained
per year.

Franchise Fee~-3%.

171

CAPITAL COSTS (300 MILES)

 

Distribution System (Population 34,000)

 

270 miles plant (aerial) @ $4,952/mile
30 miles plant (underground) @ $18,000/mi1e
270 pole re—arrangements @ $600/mile
270 tree-trimming @ $200/mile
10,200 drop materials @ $15 each
10,200 drops marketed & installed @ $26 each
11,333 taps @ $16 each
300 miles engineering @ $300/mile
13,770 converters @ $30 each
(In cludes 3,570 additional outlets)

Headend

Headend Equipment

Microwave Receiver

Local Origination Studio
Local Access Studio Equipment
Mobile Color Studio

Weather Scan

Vehicles 9 @ $3,000 each

 

Two—way Radios-~10
CT$700 base station and $450/vehicle)

 

Test Equipment (@ $45/mile)

Tools (@ $200 shop and $200/vehicle)

Spareygnyentory
(@ $507mile and 10% of all converters)

 

Office Equipment

 

Leasehold Improvements

Prenopening and Franchise Development

Total

$1,337,040

540,000
162,000

54,000
153,000
265,200
181,328

90,000
413,100

22,000
6,000
100,000
20,000
30,000
6,000
27,000

5,200

13,500
2,000

56,310

3,000

20,000

50,000

 

$3,556,678

172

ACC F INANCIAL SUPPORT

 

The American Cable Company has requested the Bank of
New York to send a registered letter to Mayor Adams sub—
stantiating credit for ACC and to guarantee that the cost of
constructing and staffing a cable television system for
Belmont Springs will be provided to meet the proposed conw

struction and service timetable.

SECTION 2

174

STATEMENT OF EXPERI ENCE

 

I. History

The organizers and principals of our Company have been
and are today pioneer leaders in the cable television and
communications industry.

In 1950, R. L. Wolfe founded ACC by building and operw
ating his first cable television system. In 1964, American
Cable Company, Incorporated was formed as a merger of three
companies with ACC.

American Cable Company, Incorporated now operates 138
cable television systems in 19 states. We serve nearly
318,000 television homes, representing over 1,200,000 teleu
vision viewers.

However, the most important factor in guaging the cur-
rent position of ACC is an intangible. It is the concept of
service to the community which has already become a tradition
in this young company. Perhaps this stems from ACC‘s sig—
nificant broadcast affiliations, delineated in the brief
history of the company attached herewith. Many of ACC°s
executives are longmtime radio and television broadcasters
with their own tradition of community involvement and status
tory service "in the public interest, convenience, and
necessity." As the Federal Communications Commission extends
its regulatory powers more and more over cable television

operations, this experience will become evermore valuable.

175

Management's concept of community service also stems
from its philosophy of applying for every franchise, and
operating every system, on the basis that ACC plans to be a
"good citizen" in that community for a long, long time.

This results in applying for fewer franchises than some but
ACC has a history of constructing virtually every system for
which it receives a municipal grant. The Company does not

"collect" unbuilt franchises for the purpose, of its annual

report.

II. ACC CABLE TELEVISION SYSTEMS

Number of Subscriber Inception of

State Systems Count ' Operations
Alabama 3 6,984 1970
California 38 86,447 1971
Connecticut 12 34,121 1954
Georgia 2 4,497 1970
Idaho 2 6,334 1963
Kansas 2 5,123 1970
Michigan 1 2,765 1971
Minnesota 2 3,548 1970
Montana 11 21,041 1954
Nebraska 5 6,016 1958
Nevada 2 5,343 1956
New Jersey 2 5,387 1962
Ohio 6 27,240 1965
Oklahoma 3 8,245 1969
Oregon 2 1958
Pennsylvania 16 63,446 1951
Texas 3 7,932 1951
Washington 10 23,131 1972
Wyoming 6 4,717‘ 1954
TOTALS 138 318,344

 

 

 

 

 

176

 

III. PENDING APPLICATIONS
ACC has seven (7) applications pending approval at this

time.

IV. OTHER FACTS

 

Currently there are no locations previously served by
ACC that are not currently being served by this company.
Also, there are 3 locations where FCC authorization has been

received that are not under construction.

CONCLUSION

 

You will notice that at the present time ACC has no cable
system in the immediate Norwalk area. It is our wish to
incorporate the many years of ACC cable television experience

into the design and construction of a CATV system for Belmont

Springs.

 

 

SECTION 3

178

CABLE TELEVISION SYSTEM PROVISIONS

 

I. CONSTRUCTION PROVISIONS

 

A.

Construction Period

 

Total installation of the system and the availability
of all projected services to all areas of Belmont
Springs will be available within 3.5 years of ACCVS
receipt of the FCC Certificate of Compliance. Total
system construction will conform to the requirements
in Ordinance #179m73. As required in the above ordiw
nance, initial system construction will begin in the
Chelsea Hills area.

Technical Standards

 

ACC's technical standards will either meet or exceed
the FCC minimum technical standards for the cable
television industry. In addition ACC agrees to cone
form to the Belmont Springs supplemental standards of
construction. Included, additionally, in this seCw
tion is an outline of our company specifications.
These are, we believe, quality "specs." and we will
adhere to them as minimum standards for the construc~

tion of Belmont Springs‘I cable television system.

179

ACC APECIFICATIONS-c-DI STRIBUTION SYSTEM

 

EEElSI‘All aerial cable will be aluminum

sheathed. All underground cable will be alum-

inum sheathed having high molecular weight

polyethylene jacket. Sizes will be:

a. Trunk Line~n1.00, 1750, 1.25 O.D., as re—
quired to meet specs.

b. Feeder Line--.500 O.D. Return Loss of all
cable will not be less than 30 db minimum,
or, if the state of the art permits at

time of purchase, greater.

Amplifiers-~Amplifiers will be Jerrold Starline

 

compatible with broadband equipment now being
developed unless subsequent improvements in the

state of the art permit superior equipment.

Subscriber Taps~wDirectional taps with plugsin

 

modules will be used. The excellent line match
coupled with modular construction in these taps
combines with the versatility of pressure taps
with the high performance of directional tapping

devices.

Cross-Modulation_(Overload)~- ~5 db maximum at

 

extremities.

10.

11.

180

Signal to Noise Ratio~~43 db minimum at extremi-

 

ties or (56-10 Log NT) db.

Reflections~~At a properly operating subscribers

 

set, reflections will be at least 40 db down

from signal.

Level at Subscriberis ReceiverweAt least +6 dbmv

 

+dme across 300 ohms.

Color Transmissionanhe distribution system will

 

not cause a change in chroma level greater than
1 db, nor cause differential gain in excess of
1 db, nor cause differential phase in excess of

1°.

Hum Modulation-~Shall not exceed 2%.

 

ReliabilitywwManufacturers do not provide specin

 

fications relative to reliability; however, it
is proposed to utilize the highest quality
equipment consistent with the state of the art.
(With modern solidwstate equipment such as that
proposed, equipment failures are exceedingly
rare, particularly after the first week of operw

ation of any individual piece of equipment.)

MaintenancewwAmerican Cable Company, Inc., will

 

retain a sufficient number of technically

12°

13°

181

qualified personnel to maintain the system at
specified quality. Additionally, sufficient
help will be either on duty or on call during
evening hours, to maintain reliable service

at all times°

 

Radiation-~The distribution system shall in no

 

case radiate more than that permitted by the
Federal Communications Commission, and any case
of interference to any other service or to off—
air reception by those not subscribing to the
service will be dealt with to the satisfaction
of the party affected, unless ACC proves conclu-
sively that the distribution system is not at

faulto

Generalmehe above specifications are such that
there will be no perceptible picture degreda—

tion from headend to subscriberVS seto

Two—way Capability

 

In order to best fulfill the requirements of this

section of the Ordinance, ACC proposes to utilize

shadow trunkpractices° This shadow trunk will be

 

 

installed during initial construction° It will du-

plicate all main trunk cable in Belmont Springs and

will be lashed with the primary lineo

182

ACC's choice of redundant trunk cable is based on
two premises established as a result of research
into current "State~Of-The-Art°"

10 With the passive devices now available for the
amplification stages of our system, we find
that the quality of reverse signals from the
home is greatly improved over that of a single
trunk where information must flow two wayso

20 This second cable can also be energized when
needed for city, educational or commercial‘useo
For instance, if the city has occasion to com—
memorate an event in the downtown area, the
cable company need only to "TAP" into the
secondary line with its cablecasting equipment
to broadfast over the cable to its subscribers
that particular evento

Interconnection

 

ACC agrees to interconnect its cable television
system with any other contiguous system if legally
and technically possible.

Service to Sub—communities

 

Sub-communities will be fed by the utilization of
the shadow trunk° Along with the mobile facilities
it will be possible to originate a significant
amount of programming in these subwcommunities° We
will, however, leave it to the City of Belmont
Springs to define these subwcommunities°

Studio and Production'Facilities

A local program origination facility will be cone
structed in the City of Belmont Springs after ACC

receives the franchise. The studio will meet the

183

City's requirements for studio and production facili-

ties and equipment for a cable systemo

In order to ensure that the studio is and will be
adequate for the needs of the Belmont Springs Com—
munity, ACC has budgeted $150,000900 in our ten year
cost projection for the Operation of these facili-
tieso All that remains is the active interested
citizenryo ACC is also ready to furnish all the
teqhnical assistance it can in order to place the

average citizen on a par with the sthdio techniciano

184

STUDIO AND PRODUCTION FACILITIES

 

The following is a list of the types and kinds of equip-

ment selected for use in the public access and local origina-

tion studio and remote programming operations:

Video Tape Recorders

 

3/4" Helical scan cartridgeo
Sony, Wollensak, Panasonic,
or 3M brand for record and

playback--studio and remote,

IVC 870 Series
1” Helical scan, or

1" Helical scan,
for master recording

Sony AV-3400 or
Panasonic Porta-Pak
1/2" Helical scan,
for remote useo

 

4
2
Sony 320F
4
Studio Cameras
2

IVC 150 or CEI, with
plumbicon and silicon
diode tubes

(1) with 10:1 zoom lens,

or 300 A-IVC

Broadcast color video
tape recorders with A
less than 1 microsec—
ond timewbase jitter,
drOpout compensator,
sync processor (meets
EIA RS—l70 specs, and
all applicable FCC
regulations.

Record and playback,
full NTSC color and
b/w capable, Full add
and insert electronic
edit (audio and video)
slow motion and stOp
action with CLP color
pack.

Battery operated camera
and video tape record/
playback with.micro—
phone batteries, char~
ger, etc,

Studio color television
capable of producing
EAI RS-300 synch wave~
formo

Zoom lens 6:1 with 50'
cable, triwpod and
dolly, tally lights,
NTSC encoder, vertical
aperture equalizer and
858 filtero

185

2 Sony DXC-SOOOB Color camera with 4"
or Shibaden viewfinder, tally
plumbicon camera with lights, intercom,
remote control unit and close—up lens, dolly,
6:1 zoom lens for studio tri-pod and 100' cable,

or remote use,

Central Control and Studio

TeleMation/IVC/Grass Valley, Sparta, Dynaco, Ball Brothers,
Bauer, Spectra-Sonics, RCA, Sony, Cohn, 3M, Viscount, Spot“
Master, Lafayett, McMarten.

The above are brand name items to be used in equipping the
master control center, studio and remote mobile—portable vans
sand public access facilities,

12 x 8 video switcher
.6x2 multicaster

TMV 550 Burst D,A,

TPS 6X1 BL switcher

Special effects generator TSE 200 VS
External encoders

Color monitors--Trinitron

B & W 9" EVM monitors (dual)

Audio mixer (14 input—~5 channel mix) TAM—10$
Lavalier micrOphones

Boom stand micrOphones

Mike desk stands

Turntables

Monitor amplifier

Cart recorder (playback audio tape machine)
Cart playback (audio tape machine)
Vectorscope (Tektronix) 520

Waveform monitor (Tektronix) 529 A
NTSC Signal generator (Tektronix) 144,
Trompeter 24 unit video patch panel
Drafting table

Drawing kit

Letraset and Letrafilm kit

Airbrush

Silk screen kit

Light meter (sekonic/GE)

Polaroid camera

16 mm 5, 0f camera

Minolta model D-lO sumer MM 5, 0f

HkahaNbthdethHdhthdbohdML»kera¢>wroh4H+4kaH

186'

Lighting Equipment

Will include Century Strand, Bardwell, and McAlister and
Berkey-Colortran.

10
12
4
12
4
8
1

l—‘CJUJUJUJUJH

Remote Vans

2

6" 750w Fresnel w/4—way barndoors and diffuser
7' Pantograph and extension cable
8" lOOO/2000w Fresnel w/barndoors and diffuser
10' extension cables
14" 1000w Scoop w/diffuser
l4" 1000w focusing scoop w/diffuser
Pattern projector 750w w/holder, pattern set and
, gel holder
Set diffusion material
Adjustable stands
25' extension cables
25' extension cables
3-fixture mini-pro kits (mini-mac) for remote
12' plugging strip w/5~ ~18" 3-pin pigtails
Dimmer controlw/6- ~6kw CCR dimmers
l- 100 amp 3-pole circuit breaker
Hanging cord patch panel w/38-20 amp

cords and breakers
42-50 amp Saf—T—Jacks, 6 per dimmer and

6 jacks/l-SO amp hot circuit
Remote control consolette
w/6 controllers (l dimmer)
6 switches
1 master control
1 system key switch
1 system blackout switch
l—25' control cable
Set (25 colors) gel material 20 x 24 sheets color
correction acetates

Remote Vans to be equipped with power inverter/
portable sWitcher/fader audio and video control

so either b/w or color cameras and VTR can be

used from central studio complex for remote Opera—
tion.

Since technology is constantly changing and improving, advanced
equipment and innovations will be ad0pted as they become re-
liably proven and available.

187

The equipment to be provided will allow wide versatility.
Taping, live and playback or film can be accomplished simul—
taneously. The use of portable camera VTR units and remote
van will allow coverage of community events of varying
lengths at various times in either color or monochrome.

Studio

The studio will have approximately 30 x 40 feet (1200 square
feet) of Open floor space which will provide for multiple
sets and rear screen projection, Ceiling height will be 12
to 15 feet to accommodate lighting which will be remote cone
trOllable so several sets can be lighted simultaneously.

Central Control

 

The central control room will be approximately 12 x 20 feet
(240 square feet) to accommodate the audio and video console,
Video tape record and playback machine, audio record and play-
back, turntables, routing switchers and patch panel, and '
allied equipment.

Projection Center

 

The projection center will be approximately 10 x 15 feet (150
square feet) to accommodate the dual projector Telesine and
allied equipment and film storage. I

Dressing Rooms

 

Two dressing rooms with lavatory facilities will be provided
for quests and staff.

II. SERVICE PROVISIONS

A. System Capacity_

 

The system which ACC proposes for the City of
Belmont Springs is designed and constructed so as to

best provide channels and expansion capabilities.

188

The system will be capable of carrying sixty (60)

channels of television (30 channels initially) and

several thousand channels of data capacity.

We anticipate, after receiving the franchise, workw

ing closely with the people and city government of

Belmont Springs in putting

Video Channel Carriage

 

1. Initially, ACC will furnish the City of Belmont

Springs with seven channels of broadcast tele-

vision.

a. NBC-TV, Norwalk

b. CBS~TV, Norwalk

c. ABC~TV, Norwalk

d. Independent TV, Norwalk

e, Public (Educational) TV, Norwalk

f, Independent Twaimported via microwave
g. Independent TV-wimported via microwave

2. The following nonmbroadcast channels will be

available to all subscribers:

a.
b.
c.
do

Belmont Springs Government Channel

Belmont Springs Public Schools Channel
James A. Garfield Community College Channel
Public Access Channel

3, In addition to the television and data capacity,

the system will also carry all Norwalk area FM,

FM stereo and quadrophonic radio stations, To

receive this extra service, all subscribers need

to do is request that their FM set be connected

to the system.

189

The American Cable Company believes it is im—

portant to provide all citizens of Belmont

Springs with cable television services.

Therefore, ACC proposes the following services

for the city"s Chicano population:

a. Importation of Chicano programming from a
television station in MeXico.

b. Provision of Chicano video tapes and films
for programming.

c. Wire services bringing news and features in
Spanish.

d. Local involvement of Chicano community in
developing new program services.

Preliminary discussions have begun between ACC

and educational leaders from the Belmont Springs

area to develop educational use channels for the

various educational institutions in the area.

Mr. Hubert Davis, ACC Program Manager, has met

with the Lincoln County Library Advisory Commit“

tee and the Belmont Springs Public Schools in an

effort to create a library “network" to provide

all schools within the franchise area equal

’access to the fine resources in the Lincoln

County Library System.

ACC has also met with Dean Rodney Thompson of
the James A. Garfield Community College to dis~
cuss potential uses of cable television techs
nology by the college. Dean Thompson and others

invision a future educational system where the

190

campus of the community college can be extended
even further, into the living rooms of all

Belmont Springs residents.

The Belmont Springs Public Schools sees cable
television as a means of extending the services
of the Instructional Materials Center. The
availability of multiple channels will allow the
system‘s instructional television services to
broaden its ability by showing instructional
films and duplicating program offerings more

times during the day to meet increased demands.

ACC has also held discussions with the city’s
departments of Research and Development and
Public Safety. Cable channels could be used to
provide information about new developments
effecting citizens. Cable could also be used
to assist in traffic control, drug abuse, and
community relations efforts of the Department
of Public Safety.

In summary, American Cable Company has begun to rem

search potential meaningful and relevant uses of

 

 

cable television for Belmont Springs residents,
The above are a mere scratch on the surface, If
awarded the franchise, ACC can deliver these many

valuable communications services to Belmont Springs.

191

C. Additional Local Origination Plans

 

l.

Philosophy--ACC has an outstanding track record

 

in providing additional programming of interest
and relevance to subscribers. We believe that
such programming should not cause a raise in
subscriber rates. To this end, we have
attempted to create a well—rounded series of
additional programming.

Local Origination ServiceSW-At this time and

 

with FCC approval, ACC proposes the following
local origination services:

a. 24-Hour News and Music Service

b. 24~Hour Time, Weather and Music

c. Local Programming Channel For Community
Affairs, Sports, Entertainment.

d. Business and Financial Programming; Conven—
tion and Tourist Information; Classified
Employment Service.

e. Program Information; Video Test Service;
Video Reference Service.

f. Environmental Information Service.

9. Movie and Entertainment Service.

D. Local Programming Plans

 

l.

PhilosophyumACC anticipates that our local orig"

 

ination effort will be flexible. We will do our
best to give the peOple what they wish. In our
origination, we will strive for "balanced pro~
gramming" in all areas; balance between enter-
tainment and education; between local, regional
and national interests; and in "live" and taped

offerings.

192

In an effort to most accurately assess the cable
programming desires of Belmont Springso citizens,
ACC conducted a market survey earlier this year.
Those types of programs receiving strongest sup"
port were children's programs, sports, travel
shows, and feature films. ACC, when awarded the
franchise will attempt to fill as many of the
expressed program preferences as possible.

Again we will attempt to present "balanced pro~
gramming in order to ensure that there is some-
thing of interest to all inhabitants of Belmont
Springs.

Hours of Programmingw-Initially, Belmont Springs

 

ACC cable television will be producing four (4)
hours of programming a day, seven days a week.
At the end of the fifth year, we anticipate a
minimum of six (6) hours of programming, seven
days a week. If we can see that the public enn
joys our programming and there is a demand for
more, ACC will, to the best of its ability,
expand our programming day to better meet the
different needs of the city.

Future Programming Plans~~ACC"s corporate re~

 

search facilities are exploring new innovations

in the use of cable technology. Those items

193

under exploration at the present time are services
such as:

a, Fire and Burglary Monitoring

b. Catalog Displays

c. Transportation Schedules

d. Reservation Services

e. Ticket Sales and Banking Services

f. Electronic Voting

g, Utility Meter Reading

h. Market Research Surveys

1. Industrial Training

It should be noted that the American Cable Company
wishes to develop the cable system in Belmont
Springs as a "model system." Because our corpor-
ate headquarters are in near-by Norwalk, it is
very important for us to have the most current
state-of—thewart system close at hand to field
test the many new and exciting services available
via cable technology. Belmont Springs is also
important to ACC as a "shOWplace system," where

Acc can demonstrate to visitors and city officials

the advanced CATV technology.

The future programming plans for Belmont Springs
include many new and exciting choices, Our plans
to deliver these new programs and services,
however, will not be imposed upon the city. ACC
will create a citizens advisory committee to supw
plement the input of the Cable Commission to make
recommendations about all new programming and

services,

III.

A.

194

The establishment of a partnership between the
American Cable Company and the City of Belmont
Springs will provide the City with one of the
most advanced cable television systems in existw
ence to meet its present and future communicaw

tions needs.

MAINTENANCE PROVISIONS

 

Number and Types of Technicians

 

ACC averages 1 technical employee per thousand subw
scribers. Eighty percent of our technical employees
are categorized as installer/servicemen. Approximate—
ly ten percent of our technical employees are engi-
neers with chief technicians filling the remaining

percentage.

Number of Service Vehicles

 

This figure varies with tOpography, climate and sys~
tem density. We currently average one vehicle
(including district and local manager cars) per 800

subscribers. ‘Number and types of major'itemS'of

 

service equipment

 

l...l signal level meter per technical employee
2...l FET volt meter per technical employee
3...l Sweep Alignment package per system, This packs
age includes:
sweep generator .... variable attenuator

marker generator.... signal comparator
oscilloscope......., detector

195

4...Two-way communications for all vehicles

5...Test equipment for specialized application such
as microwave maintenance, simultaneous system
sweep, spectrum analyzer, et cetera, are normal“

ly assigned at District level.

Routine Preventive Maintenance Activitieg

 

This procedure includes periodic power supply moni- :
toring, periodic signal level measurements and main-

tenance of historical records of specific amplifier

location performance. Signal levels at every sub-

scriber residence is recorded upon installation of

service and during each service call. We are also

required by the FCC to make specific performance

tests.

Average Response Time For Service Calls

 

Service calls are normally completed the day received.
Under only the most strenuous of extenuating circume

stances would a service call response exceed 24 hours.

 

196

 

SECTION 4

 

197

SUBSCRIBER RATES AND CHARGES

 

The American Cable Company hereby submits its schedule
of subscriber rates and charges in compliance with conditions
established in the RFP and Ordinance No. l79~73. It should
be noted that current FCC regulations do not permit discrimi-
nation in the charging of subscriber rates. However, ACC is
willing to work with the City of Belmont Springs to file a
petition for a waiver of the regulation and allow special

rates for senior citizens and welfare recipients.

A. STANDARD RATES AND CHARGES

 

1. Initial tap—in and connection charges
(TV and/or radio, residential, or
commercial)-— $9,95*
*Installation charges will be waived for
residents who subscribe to the cable service
while the section in which he resides is
under construction. These charges may also
be waived during periods of Special sub—
scriber promotions,
2, Additional installation at same location,
each-- $2,00

3. Each repositioning at same locationwn $5.00

 

B.

E.

198

'MonthlyARates

 

1. First TV or TV/radio outlet, residential

or commercial-- $6.00
2. Additional TV or TV/radio outlets, eachw- 2.00
HOTELS, MOTELS, REST HOMES, AND HOSPITALS

CONTAINING MORE THAN TEN (10) RENTAL
UNITS TO WHICH SERVICE IS PROVIDED

 

 

 

1. Cost of installing service to buildings and H
units contained thereinu- Time and Material
2. Monthly rates. . . . These rates are the
same as single residential units.
MULTIPLE DWELLING UNITS (CONTAINED WITHIN
ONE STRUCTURE OR A GROUP OF STRUCTURES

LOCATED IN ONE COMPLEX) WHERE ALL SERVICE
IS BILLED TO ONE CUSTOMER

 

 

 

1. Cost of installing service to buildings and
units contained therein-~Initial Installation $9.95
Others: Time and Material
2. Monthly rates, per TV outlet, according to the
following schedule:

NUMBER OF DWELLING UNITS SERVED

 

UP TO 5. . . . . . . $5.00 EACH
6 THROUGH 49 . o o o 3.75 EACH
50 THROUGH 99. o o o 2.50 EACH

100 AND OVER . . . . 1.50 EACH

SPECIAL CLASS SUBSCRIBERS

 

First TV or TV/Radio outlet only, residential

or commercialw- $4.00

 

199

ENGINEERING CONSULTANTS
OF NORWALK 3550 WALKER AVE.

MEMORANDUM

 

TO: Belmont Springs Cable Commission
FROM: Engineering Consultants of Norwalk
SUBJECT: Technical Evaluation

Pursuant to your request, Engineering Consultants of
Norwalk has conducted an investigation of the technical
standards contained in the proposals of the two applicants
for the CATV franchise in Belmont Springs. Specific topics
investigated were:

1. Technical design
2. Maintenance equipment
3. Proposed construction timetables.

Our staff found both companies to be highly competent;
most likely either company would provide the city with
excellent service. However, given the three categories
above, we found the American Cable Company to have a slight
edge over Mountain Communications Incorporated. The decid-

ing category was technical design, where ACC's system was

 

slightly more advanced.

200

rap mam £39.31 1513 grams

EEJUQDEEIAE

The suburb of Belmont Springs is presently undergoing
the task of selecting an operator for its cable television
system. Two excellent local-based companies have applied
for the franchise; American Cable Company and Mountain Com-
munications Incorporated.

While either company would do a good job, we at the
Norwalk Daily News urge that MCI be granted the franchise
for Belmont Springs. Mountain Communications Incorporated
presently holds three other franchises in the greater
Norwalk area and is in negotiations with the City of Norwalk
for its franchise.

If MCI received both the Belmont Springs and the
Norwalk franchise, they could provide a metropolitan wide
communications network, so very vital for the maximum

utilization of cable television technology.

201

DECISION EXPLANATION SHEET #5

 

The Decision:

 

After reviewing the prOposals, your group should have

recommended that the American Cable Company be awarded the

 

cable television franchise for Belmont Springs.

 

This decision is worth points, if your
selection was correct, glve your team
points for the right decision and points

per correct selection reason as given Below.
Read the explanations and mark your scorecard.

 

 

 

The Explanation:

 

The selection of a franchisee represents one of the
most difficult and crucial decisions for a local community
in the cable decisionmaking process, Quite frequently the
differences between the applicantsu proposals are very hard
to evaluate.

After scoring the applicants for the Belmont Springs
franchise and reviewing the evaluation standards, the
American Cable Company should have been selected for the
following reasons:

1. ACC demonstrated superior financial capability.

It was the applicant who provided proof it had the

money necessary to construct the system.

202

ACC also demonstrated a more sound operating back-
ground and a better potential to furnish service,
It did not have a large number of outstanding fran—
chises to potentially slow the develOpment of the
system in Belmont Springs.

The technical consultant's report showed ACC to
have a superior technical design, maintenance plan
and installation timetable.

The number and quality of nonrbroadcast services
offered by ACC was superior. ACC demonstrated its
community interest by surveying community leaders
prior to being granted the franchise to determine
public interest in programming.

The rate schedule proposed by ACC was more reason-

able for the services offered.

203

DECISION POINT #6

 

The Situation:

 

After a public hearing on the selection of the cable
operator for Belmont Springs, the city council voted to
award the franchise to the American Cable Company. Some
months later, Belmont Springs received its Certificate of
Compliance from the FCC and construction of the cable system
in the city began.

It is now three years later. The cable system has been
completed; much sooner than anticipated, and is delivering
cable service to Belmont Springs residents. As anticipated,
the cable service is very pOpular and Opinion polls show that
the greatest majority of the subscribers are pleased with
the way the American Cable Company is running the cable
system.

There is one group, however, who is most unhappy with
the way the American Cable Company is operating its public
access channel. The G.L.M. (Gay Liberation Movement),
borrowed a portable halfwinch videotape recorder from the ACC
to produce a fifteen minute program for the public access
channel to clear-up common misconceptions about gay bars in
the Belmont Springs-Norwalk area. When the GLM took the
completed tape back to the origination studio, they were

assigned a time on the public access channel three days later.

204

When the time came for the program to be shown, the channel
was blank. When they called the program manager at the
origination studio, the G.L.M. was told the tape could not
be shown because "it did not meet technical standards".
The Gay Liberation Movement believes the American Cable
Company is censoring their program and has appealed to the

Belmont Springs Cable Commission.

The Task:

 

The Cable Commission has asked each side to present its
version of the situation by filing a written brief. Your
task is to review each brief, FCC regulations for public
access channels, and approved ACC rules for public access

channels and arrive at a decision.

The Decision:

 

Complete the following:

Based on the evidence presented, the Gay Liberation Moven
ment ( ) should ( ) should not have been allowed to show
their videotape.

Give a reason for the above decision:

 

 

 

When you have completed your decision and reasons, you may

request Decision Explanation Sheet #6 from the G.O.D.

205

GLM BRI EF

 

Introduction

 

We, members of the Gay Liberation Movement of Belmont
Springs, believe the American Cable Company has violated
Section 76.251, Subparagraph 9, of the Federal Communications

Commission's 1972 Cable Television Report and'Ordeg. In the

 

next few paragraphs we will prove our claim and ask the
Belmont Springs Cable Commission to allow our videotape to

be shown.

The Situation

 

Approximately three weeks ago, a GLM member signed—out
one of the American Cable Company°s portable half-inch video-
tape recorders and a fresh reel of videotape to produce a
fifteen minute program he had written on gay bars in the
Belmont Springs-Norwalk area. The script was written so
there would be no editing necessary. The program began with
a brief introduction by our GLM president on common misconw
ceptions about gay bars and then the writer took the viewers
on a walking tour through three area gay bars to show gay
bars are no different from "other" bars.

After videotaping the program, we played back the tape
over the monitor. While we admit the production quality to
be less than professional, there was a definite video image

and a clear soundtrack.

206

The next day, the tape was taken to the American Cable
Company's origination studio to be assigned a time slot on
the public access channel. The GLM member was asked to read
ACC's Access Rules and sign the application form. He was
then given a time slot on the access channel three days later.
When it was time for the program to be shown, the channel was
blank. He called the ACC studio and was told the videotape
could not be shown because it did not meet company program

standards: it was too dark and the audio was garbled.

Conclusion

 

Again, we state the videotape was not of professional
quality, but it was made well enough to distinguish both
video and audio signals. The ACC did not state in either
their rules or application that tapes must meet any produc-
tion quality criteria. GLM members believe the American Cable
Company is using production quality as an excuse to censor
the content of the tape, an act, specifically prohibited by
FCC cable television rules.

The quality of the tape is not really the issue here.
At issue is the right of the cable Operator to censor the
content of a program using technical standards as an excuse.
We believe a review of applicable FCC regulations will sub-
stantiate our claim and we therefore ask the Belmont Springs
Cable Commission to grant our request and allow the tape to

be shown.

207

ACC BRIEF

 

Introduction

 

The American Cable Company would like to thank the
Belmont Springs Cable Commission for the Opportunity to
respond to a claim made against the company over the use of
the public access channel by a community group. As you will
see, our refusal to play their videotape was wellnfounded
in both local and Federal Communications Commission regula-

tory policy.

The Situation:

 

Our records show that a member of the Gay Liberation
Movement contacted our origination studios approximately
three weeks ago to reserve a portable videotape recorder.

To provide the best possible quality local origination pr0w
ductions, ACC requests that those interested in producing
programs take a short (half hour) training session on the
portable videotape recorder. The individual from the GLM
told our program manager he had previous experience in using
the recorder and would not require the training session.

Upon returning with the recorder and completed video—
tape, the individual was asked to routinely review our public
access rules and read and sign the public access application
form. As approved by the FCC and the Belmont Springs Cable

Commission, the American Cable Company has the right to

208

preview all material cablecast over its public access channel.
A preview of the tape showed a very poor video signal and a
barely audible audio signal.

American Cable Company believes it has a reSponSibility
to its many Belmont Springs subscribers to provide the best
possible reception service. If we allow inferior technical
quality programming to be shown over our local origination
channels, ACC will be blamed for poor quality service even
when the fault lies with the program materials. Further,
poor quality may discourage the viewing of the public access
channel and ultimately defeat its purpose. For the instance
in question, ACC offered to provide assistance to the indi-
vidual in the prOper use of the recorder, but the assistance

was refused.

Conclusion

 

We at American Cable Company believe we have a civic
responsibility to the citizens of Belmont Springs to provide
them with quality local origination programs. Our offer to
provide training to the community group member was refused.

Our offer of equipment training for the GLM member rem
mains, but the tape in question, in our opinion, cannot and
should not be cablecast. We believe, a review of existing

rules will verify our claim.

209

FCC CABLECASTING REGULATIONS

 

Subpart G—Coblecusting

§ 76.201 Origination cablecasting in
conjunction with carriage of broad-
cast signals.

(a) No cable television system having
3,500 or more subscribers shall carry the
signal of any television broadcast station
unless the system also operates to a sig-
nificant extent as a local outlet by orig-
ination cablecasting and has available
facilities for local production and presen-
tation 01 programs other than automated
services. Such origination cablecasting
shall be limited to one or more desig-
nated channels which may be used for no
other purpose.

(b) No cable television system located
outside of all major television markets
shall enter into any contract, arrange-
ment. or lease tor use of its cablecasting
facilities which prevents or inhibits the
use of such facilities for a substantial
portion of time (including the time pe-
riod 6—11 p.m.) for local programing de-
signed to inform the public on contro-
versial issues of public importance.

(c) No cable television system shall
carry the signal of any television broad-
cast station it the system engages in
origination cablecasting, either volun-
tarily or pursuant to paragraph (a) or
this section. unless such cablecasting is
conducted in accordance with the pro-
visions of N 76.205. 76.209. 76.213. 78.215.
76.217. 76.221. and 76.225.

576.205 Origination cable-casts by can-
didates for public office.

(a) General requirements. If a cable
television sy5tem shall permit any legally
qualified candidate for public office to use
its origination channel(s) and facilities
therefor. it shall aflord equal opportu-

nities to all other such candidates for

that office: Provided, however. That such
system shall have no power of censorship
over the material cablecast of any such
candidate: And provided. further. That
an appearance by a legally qualified can-
didate on any:

(i) Bona fidenewscast,

( 2) Bona fide news interview.

(3) Bona fide news documentary (if
the appearance of the candidate is in-
cidental to the presentation of the sub-
ject or subjects covered by the news
documentary). or

(4) On-the-spot coverage of bona
fide news events (including but not
limited to political conventions and ac—
tivities incidental thereto).

shall not be deemed to be use of the
facilities of the system within the mean-
ing of this paragraph.

Non. The fairness doctrine is applicable
to these exempt categories. See 5 76.209.

(b) Rates and practices. (1) The rates.
if any. charged all such candidates for
the same office shall be uniform. shall
not be rebated by any means direct or
indirect. and shall not exceed the charges
made for comparable origination use of
such facilities for other purposes.

(2) In making facilities available to
candidates for public office no cable tele-
vision system shall make any discrimina-
tion between candidates in charges.
practices. regulations. facilities. or serv-
ices tor or in connection With the service
rendered. or make or give any preference
to any candidate for public office or sub-
ject any such candidate to any prejudice
or disadvantage; nor shall any cable tele-
vision system make any contract or other
agreement which shall have the eflect of
permitting any legally qualified candi-
date tor any public allies to cablecast
to the exclusion of other legally quali-
fied candidates for the same public omce.

(c) Records. inspections. Every cable
television system shall keep and permit
public inspection of a complete record
of all requests for origination cablecast-
ing time made by or on behalf of candi-
dates for public ofllce. together with an
appropriate notation showing the dis-
position made by the system of such re-
quests. the charges made. it any. and
the length and time of cablecast. it the
request is granted. Such records shall be
retained {or a period of 2 years.

((1) Time of request. A request for
equal Opportunities for use of the origi-
nation channel(s) must be submitted to
the cable television system within one
(1) week of the day on which the first
prior use. giving rise to the right of equal
opportunities. occurred: Provided. how-
ever. That where a person was not a
candidate at the time of such first prior
use. he shall submit his request within
one (1) week 01 the first subsequent use
after he has become a legally qualified
candidate for the allies in question.

(e) Burden of proof. A candidate re—
questing such equal opportunities of the
cable television system, or complaining of
noncompliance to the Commission. shall
have the burden of proving that he and
his opponent are legally qualified candi-
dates lor the same public oillce.

5 76.221 Sponsorship identification.

( a) When a cable television system en-
gaged in origination cablecasting pre-
sents any matter for which money. serv-
ices. or other valuable consideration is
either directly or indirectly paid or
promised to. or charged or received by.
such system. the system shall make an
announcement that such matter is spon-
sored. paid for. or furnished. either in
whole or in part. and by whom or on
whose behalf such consideration was sup-
plied: Provided. however. That “service
or other valuable consideration” shall not
include any service or property furnished
without charge or at a nominal charge
for use on. or in connection with. such
cablecasting unless it is so furnished as
consideration for an identification in s
cablecast of any person. product. service.
trademark. or brand name beyond an

identification which is reasonably related
to the use of such service or property on
the cablecast.

(b) Each system engaged in origina-
tion cablecasting shall exercise reason-
able diligence to obtain from its employ—
ees. and from other persons with whom
it decis directly in connection with any
program matter for origination cable-
casting. information to enable it to make
the announcement required by this
section

to) In the c'ase of any political pro-
gram or any program involving the dis-
cussion of public controversial issues for
which any films. records. transcriptions.
talent. script. or other material or serv-
ices of any kind are furnished, either di-

rectly or indirectlycto a cable television

system as an inducement to the origina-
tion cablecasting of such program. an
announcement to this effect shall be
made at the beginning and conclusion of
such program: Provided, however. That
only one such announcement need be
made in the case of any such program
of five (5) minutes' duration or less.
either at the beginning or conclusion of
the program.

(d) The announcements required by
this section are waived with respect to
feature motion picture films produced
initially and primarily for theater exhi-
bition.
§ 76.225 Per-program or per-channel

charges for reception of csblcc'asts.

(a) Originatibn or access cablecasting
operations for which a per-program or
per-channel charge is made shall com-
ply with the following requirements:

(1) Feature films shall not be cable—
cast which have had general release in
theaters anywhere in the United States
more than two (2) years prior to their
cablecast: Provided, however, That dur-
ing 1 week of each calendar month one
feature film the general release of which
occurred more than ten (10) years previ-
ously may be cablecast. and more than
a single showing of such film may be
made during that week: Provided. tur-

210

flier, That feature films the general re.
lease of which occurred between two (2)
and ten (10) years before prOposed
cablecast may be cablecast upon a con-
vincing showing to the Commission that
bona fide attempt has been made to sell
the films for conventional television
broadcasting and that they have been re-
fused. or that the owner of the broadcast
rights to the films will not permit them
to be televised on conventional television
because he has been unable to work out
satisfactory arrangements concerning
editing for presentation thereon. or per-
haps because he intends never to show
them on conventional television since to
do so might impair their repetitive'box
oiIicc potential in the future.

Nara: As used in this subparagrsph. "gen-
eral release" means the first-run showing d
a feature film inc. theatre or theatres in all
area. on a nonreserved-seat basis. with con-
tinuous performances. For first-run show.
ing of feature films on a nonmerved-ssat
basis which are not considered to be "general
release” for purposes of this subparagnph.
see note meounhReportsndOI-derh
Docket No. 11279. 15 FCC 3d ‘66.

(25 Sports events shall not be cable-
cast which have been televised live on a
nonsubscription. regular basis in the
community during the two (2) years pre-
ceding their proposed cablecast: Pro-
vided. however. That if the last regular
occurrence of a specific event (e.g., sum-
mer Olympic games) was more than two
(2) years before proposed showing on
cable television in a community and the
wait was at that time televised on con-
ventional television in that community.
it shall not be cablecast.

Non 1: In determining whether a sports
event has been televised in a community on
a nonsubscription basis. only commercial
television broadcast stations which place a
Grade A contour over the entire community
will be considered. Such stations need not
necessarily be licensed to serve that com--
munity.

liars a: The manner in which this sub-
paragraph will be administered and in which
“moth." “sports events.“ and “televised live
on s nonsubscriptaon regular basis" will be
construed is explained in paragraphs 288-806
in'lourth Report and Order in Docket No.
11879. 15 ’00 2d see.

(8) No series type of program with
interconnecwd plot or substantially the
same cast of principal characters shall
be cablecast.

(4) Not more than 90 percent of the
total cablecast programing hours shall
consist of feature films and sports
events combined. The percentage calcu-
lations may be made on a yearly basis.
but. absent a showing of good cause. the
percentage of such programing hours
may not exceed 95 percent of the. total
cablecast programing hours in any
calendar month.

(5) No commercial advertising an-
nouncements shall be carried on such
channels during such operations except.
before and after such programs. for pro-
motion of other programs for which a
per-program or per-channel charge is
made.

§ 76.209 Fairness doctrines personal at-
tache: political editorials.

(a) A cable television system engaging
in origination cablecasting shall aflord
reasonable opportunity (or the discussion
of conflicting views on issues of public
importance.

Nora: See public notice. “Applicability of
the Fairness Doctrine in the Handling of
Controversial Issues 0: Public Importance.“
29 FR. 10415.

(b) When. during such origination
cablecasting. an attack is made Upon the
honesty, character. integrity. or like per-
sonal qualities of an identified person or
group. the cable television system shall.
within a reasonable time and in no event
later than one (1) week after the attack.
transmit to the person or group at-
tacked: (1) Notification of the date. time.
and identification of the cablecast; (2) a
script or tape (or an accurate summary it
a script or tape is not available) of the
attack: and (3) an oiier of a reasonable
Opportunity to respond over the system's
facilities.

(c) The provisions of paragraph (b) of
this section shall not be applicable: (1)
To attacks on foreign groups or foreign
public figures;
which are made by legally qualified can-
didates. their authorized spokesmen. or
those associated with them in the cam-
paign. on other such candidates. their
authorized spokesmen. or persons associ-
ated with the candidates in the cam-
paign: and (3) to bona fide newscasts.
bonafide news interviews. and on-the—
spot coverage of a bona tide news event
(including commentary or analysis con-
tained in the foregoing programs. but the
provisions of paragraph (b) of this sec-
tion shall be applicable to editorials of
the cable television system).

((1) Where a cable television system. in

an editorial. (1) endorses or (2) opposes
a legally qualified candidate or candi-
dates the system shall. within 24 hours
after the editorial. transmit to respec-
tively (i) the other qualified candidate
or candidates for the same office. or (ii)
the candidate opposed in the editorial.
(a) notification of the date. time. and
channel of the editorial; (b) a script or
tape of the editorial: and (c) an otter of
a reasonable opportunity for a candidate
or a spokesman of the candidate to re-
spond over the system's facilities: Pro-
vided, however. That where such editori-
als are cablecast within 72 hours prior to
the day of the election. the system shall
comply Wlth the provisions of this para-
graph sufficiently lar in advance of the
broadcast to enable the candidate or
candidates to have a reasonable oppor-
tunity to prepare a response and to pre-
sent it in a timely fashion.

(2) to personal attacks-

211

§ 76.213 Lotteries.

(a) No cable television system when
engaged in origination cablecasting shall
transmit or permit to be transmitted on
the origination cablecasting channel or
channels any advertisement of or infor-
mation concerning any lottery. gift eu-
terprise. or similar scheme. altering
prizes dependent in whole or in part upon
lot or chance. or any list of the prizes

drawn or awarded by means of any such-
lottery. gift enterprise. or scheme.
whether said list contains In! part or
all of such prizes.

(b) The determination whether a
particular pregram comes within the pro-
visions of paragraph (a) of this section
depends on the facts of each case. How-
ever. the Commission will in any event
consider that a program coma within
the provisions of paragraph (a) of this
section it in connection with such pro-
gram a prize consisting of money or thing
of value is awarded to any person whose
selection is dependent in whole or in part
upon lot or chance. it as a condition of
winning or competing for such prize.
such winner or winners are required
to furnish any money or thing of value
or are required to have in their possession
any product sold. manufactured. fur-
nished. or distributed by a sponsor of a
program cablecast on the system in
question.

§ 76.215 Obscenity.

No cable television .system when en-
gaged in origination cablecasting shall
transmit or permit to be transmitted on
the origination cablecasting channel or
channels material that is obscene or
indecedent.

5 76.217 Advertising.

A cable television system engaged in
origination cablecast programing may
present advertising material at the begin-
ning and conclusion of each such pro-
gram and at natural intermissions or
breaks within a cablecast: Provided.
however. That the system itself does not
interrupt the presentation of program
material in order to intersperse advertis-
ing: And provided. lurther. That adver-
tising material is not presented on or in
connection with origination cablecasting
in any other manner.

Non: The term “natural intermissions or
breaks within a cablecast" means any natural
intermission in the program material which
is beyond the control of the cable television
operator. such as time-out in a sporting
event. an intermission in a concert (I draw
maiic pertormance. a recess in a city council
meeting. an intermission in a long motion
picture which was present at the time of
theatre exhibition. etc.

mmudunlc 1:111

.76151 Minimum channel capacity;
accesachannels.

(a) No cable television system operat-
ing m a community located in whole or
in part within a major television market,
as defined in I 76.5, shall carry the signal
(1 my television broadcast station unless
tin system also complies with the follow-
ing requirements concerning the avail-
alility and administration oi access
channels:

(1) Minimum channel capacity. Each
such system shall have at least 120 MI-ls
of bandwidth (the equivalent of 20 tele-
Vision broadcast channels) available for
immediate or potential use for the to-
tality of cable services to be offered;

12) Equivalent amount of bandwidth.
ror each Class I cable channel that is
utilized. such system shall provide an ad-
ditional channel. 6 MHz in width. suit-
able for transmission oi Class II or Class
III signals (see i 76.5 for cable channel
definitions) ;

(3) Two-way communications. Each
such system shall maintain a plant hav-
ing technical capacity for nonvoice re-
turn commrmications;

(4) Public access channel. Each such
system shall maintain at least one spe-
cially designated. noncommercial public
access channel available an a nrstocome.
nmdhcrlminatory basis. The system
shall maintain and have available tor
public use at least the minimal equip-
ment and facilities necessary for the pro-
duction of programing for such a chan‘
nel. See also {76.201:

(5) Education access channel. Each
such system shall maintain at least one
specially designated channel for use by
local educational authorities:

(6) Local government access channel.
Each such system shall maintain at least
are specially designated channel for local
government uses;

(7) Leased access channels. Having
satisfied the origination cablecasting re-
cuirements of 5 76.201. and the require-
ments of subparagraphs (4). (5). and
(6) of this paragraph ior specially desig-
nated access channels. such system shall
cler other portions of its nonbroadcast
bandwidth. including unused portions of
the specially designated channels. for
leased access services. However. these
leased channel operations shall be under-
taken with the express understanding
that they are subject to displacement ii
there is a demand to use the channels for
their specially designated purposes. On
at hast one of the leased channels.
priority shall be given part-time users:

(6) Expansion of access channel
capacity. Wherever all or the channels
described in subparagraphs (4) through
(7) ct this paragraph are m use d
00 percent of the weekdays (Monday—
Friday) for 60 percent of the time during
any consecutive s-hour period tor 6 con-
secutive weeks. such system shall have 6
months! in‘which to make a new channel

yailabe oranyorallottheabove-
described purposes:

212

(9) Program content control. Each
such system shall exercise no control
overprogramcontentonsnyoi the
channels described in subparagraphs (i)
through (7) ct this paragraph; however.
this limitation shall not prevent it from
taking ”prophets steps to insure com-
pliance with the operating rules de-
scribed in subparagraph (11) or this
mm

(10) Assessment of costs. (1) From the
cmnmencemmt or cable television serv-
iceinthecommunityotsuchsystem
rmtil five (5) years alter completion cl
fire system’s basic trunk line. the chan-
nels described in subparagraphs (5) and
(6) of this paragraph mall be made

(ii) One of the public access channels
in subparagraph (4) or this
paragraph shall always be made avail-
able without charge. except that produc-
tion costs may be assessed for live studio
presentations exceeding 5 minutes. Such
production costs and any fees for use of
other public access channels shall be
omisistmt with the goal oi aflording the
prime a low-cost means of television
access:

(11) Operating rules. (i) For the pub-
its access channeus). such system shall
establish rules requiring first-come non-
discriminatory access; prohibiting the
Won of: Any advertising mate-
rialdcsignedtopromotethesalcoicom-
mercies products or services (including
advertising by or on behalf of candidates
for public once): lottery information;
and obscene or indecait matter (modeled
after the prohibitions in It 76.213 and
76.215. respectiveLv); and permitting
public inspection or a complete record
or the names and addresses of all persons
or groups requesting access time. Such a
rccordshsllberetained toraperiodoi
2 years. '

(ii) For the educational access chan-
nel(s). such system shall estabish rules
prohibiting the presentation of : Any
advertising material designed to promote
the sale of commercial products or serv-
icu (including advertising by or on be-
half of candidates for public omce);
lottery iniormation; and obscene or in-
decent matter (modeled after the pro-
hibitions in I! 76.213 and 76.215. respec-
tively) and permitting public inspection
of a complete record of the names and
addresses of all persons or groups re-
questing access time. Such a record shall
bsretaincdioraperiodotilyears.

(iii) For the leased channel(s). such
system shall establish rules requiring
first-come. nondiscriminatory access:
prohibiting the presentation of lottery
information and obscene or indecent
matter (modeled after the prohibitions
in it 76.213 and 76.215, respectively); re-
quiring sponsorship identification (see
i 76.221); specifying an appropriate rate
schedule and permitting public inspec-
flrm of a complete record of the names
pndaddressesoiallpersonsorsmups
recuestingtime.8ucharecordshailbe
retained im- a period of 2 years.

 

adOpt
Rules
govex
tione
afte:

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dire
COns
Cont
beeI

Sta.

Off
Che

lot

213

AMERICAN CABLE COMPANY

ACCESS RULES

1o Purpose

The rules and regulations set forth hereinbelow are
adOpted pursuant to the requirements of Section 76,251 of the
Rules of the Federal Communications Commission (FCC) and
govern the availability and use of the public access, educa-
tional and leased channels of American Cable Company (hereinw
after referred to as "Operator") maintained on its cable

television system serving Belmont Springs°

2. Definitions

 

a. Lottery. Any device, scheme, plan, promotion, con-
test or other program and/or presentation which involves
directly or indirectly the elements of prize, chance and
consideration; or any such device, scheme, plan, promotion,
contest or other program and/or presentation which is, has I
been or may be declared a lottery under applicable local,
state or Federal law.

b° Lottery Information. Any advertising or information

 

concerning any lottery, gift enterprise, or similar scheme
offering prizes dependent in whole or in part upon lot or
chance, or any list drawn or awarded by means of any such
lottery, gift enterprise, or scheme, whether said list conw

tains any part or all of such prizes.

 

W

214

c. Obscene or Indecent Materialo Any material in a pro-

 

gram and/or presentation which would subject the producer or
supplier thereof to prosecution under local, state or Federal
law for the production or presentation of obscene or indecent

materialo

30 Operating Rules Governing All Access Channels

(a) No program, production or presentation which invol-
ves directly or indirectly any lottery information or which
involves a lottery shall be transmitted or permitted to be
transmitted on any access channelo

(b) No program, production or presentation which in-
volves any obscene or indecent material shall be transmitted
or permitted to be transmitted on any access channel.

(c) No program, production, or presentation which in«
volves any other prohibited material as stated in these Rules
or in the FCC rules shall be transmitted or permitted to be
transmitted on any access channel°

(d) Operator will require an access channel user to
submit User's program material to Operator for Operator to
preview prior to actual transmission and/or dissemination
over Operator's cable television facilitieso Operator may
waive this requirement in extraordinary circumstances, include
ing cases of emergency involving public health, safety or

welfareo Operator is authorized to delete any portions of

215

the material to be transmitted and/or disseminated which
Operator reasonably believes may subject it to any kind of
liability under applicable law. Such previewing does not,
however, release User from any reSponSibility for the nature
of User's program materialo

(e) Operator reserves the right to require an access
channel user to post bond when the User has been guilty of

a previous violation of the FCC rules.

40 Operating Rules Governing Public Access Channel

(a) The public access channel, shall be available for
access cablecasting to any person, group, organization or
other entity on a first-come, non-discriminatory basis upon
the filing of an appropriate request therefor in accordance
with Section 5 hereof, and consistent with the availability
of the public access channel at the time and for the duration
requested°

(b) Basic facilities will be available for public use
for the production of programming for the public access
channel. Such facilities will be made available without
charge for live studio presentations not exceeding 15 minuteso
Where Operator has required User to Videotape User‘s program
material for preview, no charge will be made for 15 minutes
of studio production costs, and charges for productions
longer than 15 minutes will be only for the costs of a live

studio presentation°

sum
U
leased

Operat

access

come'
are I
will

tiVe

216

50 Applications for Access Channels

 

(a) Applications for use of the public, educational or
leased access channels shall be submitted in writing on
Operator's application form and shall identify the proposed
access user by name and address,b

(b) All requests shall be promptly processed on a first—
come non-discriminatory basis. In cases in which requests
are received for the same date and time, the earlier request
will be given preference° An applicant may specify alterna-

tive dates and times in his initial requesto

217
AMERICAN CABLE COMPANY
CABLE CHANNEL

ACCESS APPLICATION & AGREEMENT

be tween American Cabfle Company (" Operator " )

 

and ("Applicant")°

l° Applicant's Address:

 

 

2° Access Channel Desired: Public ( ), Educational ( ),
or Leased ( )°

30 Date (or Dates) Desired:

 

40 Time Segment (eog., 4:00 - 4:15 pom.):

 

50 Nature of Cablecast - Live, tape, film.

60 Production facilities and personnel of Operator which
will be necessary for presentation of the access cable“
cast:

70 Acceptance of this application is conditioned upon the
following terms:

a° Operator reserves the right to require Applicant to
submit its program material to Operator for Operator to
review at Applicant's expense prior to actual transmi3n
sion and/or dissemination over Operator's cable tele-
vision facilities° Operator is hereby authorized by
Applicant to delete any portions of the material to be
transmitted and/or disseminated which Operator reasonably
believes may subject it to any kind of liability under
applicable law.

bo In the event that the Applicant's programming carried
on the Operator's cable television facilities causes

tC<<1l

App

(Da

AP]

(13

218

transmission interference or distortion to Operator's
other transmissions, or transmissions of others which
Operator is contractually obligated to protect, the
Operator has the right to halt Applicant's transmission
until the distortion is eliminated.

c. Applicant releases and forever discharges Operator,
Operator's officers, directors and employees, and
Operator's successors and assigns, of and from any
liability, loss, claim, cost, or damage of any nature
whatsoever which Applicant ever had, has or may ever
have at any time against Operator on account of or
arising out of Applicant"s appearance on or use of
Operator's Access Channels°

Applicant:

(Date) (Sign)

 

Approved by Operator:

(Date) ' (Sign)

 

219

DECISION EXPLANATION SHEET #6

The Decision:

 

Based on the evidence presented, the Gay Liberation Move"
ment should have been allowed to show their original video-
tape over the American Cable CompanyVS public access channel
as long as it did not contain obscene material, advertising

or lottery material.

 

This decision is worth points. If you
made the correct decision, give your term
points for the correct decision, and
more points if your reason was the
same or very similar to the reason stated
below. Read the explanation and mark your
scorecard.

 

 

 

The Explanation:

 

The Federal Communications Commission has established
rules for the public access channels that contain these
provisions:

- Public access must be on a firstwcome, non—
discriminatory basis.

- Advertising is prohibited for commercial
products or services, or on behalf of any
candidate for public office.

- Lotteries and obscene or indecent matter
are prohibited.

- Facilities for live studio presentations of
five minutes or less must be provided free
of charge.

Beyond these restrictions, the cable operator cannot

exercise control over who uses the channel and what content

is pr
the c
Cable
lishc
publ
and

garb

pan}
wha‘
min
tap
the
be

the

hi
gt
le

91

220

is presented. In the FCC explanation of these rules, and in
the city council approved access rules for the American

Cable Company, there were no provisions or criteria estab-
lished for public access programming. One of the purposes of
public access is to assure the greatest diversity of ideas
and opinions even if the picture is dark and the audio is
garbled.

It appeared, in this case, that the American Cable Comm
pany was using technical standards as an excuse to censor
what they thought might be potentially questionable program~
ming. It is highly unlikely that the playing of the Video_
tape could have damaged the origination equipment. And if
they were opposed to the program because they thought it to
be indecent, they should have labeled it as such and handled
the matter in that light.

The cable operator should warn producers of poor tech—
nical quality tapes and try to help them to improve the
quality (as ACC offered), but the operator does not have the
legal ground to refuse tapes solely on technical quality

grounds.

 

out
deVe
in 4

min

Ev

a1

221

CHAPTER III

FEEDBACK AND EVALUATION DATA

Two of the most important components of the ten step
instructional development model developed by Gerlach and Ely
(Figure 1) are the last two: evaluation of performance and
the analysis of feedback. It is here the developer finds
out how well he has achieved the other eight steps of
deve10pment. This chapter reports the information gained
in two field test evaluations of the Cable Television Plan-
ning Exercise. More specifically, this chapter will report:
1. Evaluation Procedure

2 Evaluation Results
3. Evaluation of Feedback and Recommendations

Evaluation Procedures

 

The Cable Television Planning Exercise was field tested
and evaluated twice during the various stages of its deve10pm
ment. The first field test was for Decision Points One to
Four with a class of graduate students in the Department of
Television—Radio at Michigan State University. The second
field test included Decision Points One to Five with a group
of the writer's friends who have varying vocational and

academic backgrounds. Decision Point Six has been evaluated

infor
be nc
tions
ity s
writ
have
Comm
and

visi

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ab01
Pla.
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the
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of

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222

informally, but not in an actual gaming situation. It should
be noted that in each of the two completed field test situa-
tions, members of the groups have been involved with commun-
ity groups in planning cable television services. At the
writing time of this chapter, at least two other field tests
have been planned: one with a Joint Legislative Study
Committee on Cable Television in the Michigan Legislature,
and the other with a special projects class in cable tele-
vision at Michigan State University.

An analysis of the entry behavior of the game partici-
pants in Field Test I showed varying degrees of knowledge
about cable teleVision. As noted, some had prior cable
planning experience. Others had studied cable television in
their classes. Still others had only a cursory knowledge of
the subject. The entry behaviors for Field Test II were
similar: Prior experience to an introductory knowledge of
cable television. A total of ten participants took part in
Field Test I, six participants in Field Test II.

In both tests, participants were given an opportunity
to evaluate the game and provide feedback in two ways: by
the use of short feedback sessions at the end of each
decision point, and by the use of a written Opinion question—
naire administered at the end of the playing session. Many
of the oral comments reflected responses given in the ques—

tionnaire.

respor
Perha}
ing t<
Anoth
"game
taine

sugg¢

afte
intc
fee:
The
two

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223

The questionnaire was designed to obtain participant
responses to a number of different types of information.
Perhaps the most important questions asked were those pertain“
ing to how well the game achieved its Specified objectives.
Another set of questions solicited information about the
"gameability" of the simulation, and yet other questions perm
tained to how well participants "liked" the game and what
suggestions they had for improvement.

The responses to Field Test I were tabulated immediately
after the playing session and certain refinements were built
into the second prototype used for Field Test II. The same
feedback procedure was used after the second playing session.
The questionnaire and the responses to the questions for the
two field tests situations are contained in the next section

of this chapter.

Evaluation Results
Below are the compiled evaluations of both Field Test I
and II. The responses were tabulated on the same form

administered to the participants.

224

TABLE 2

FIELD TEST I EVALUATION OF THE CABLE TELEVISION
PLANNING EXERCISE

 

 

How well do you feel you learned a systematic process
for determining cable television policy in local com-
munities? (Check one)

1 (2) 2 (6) 3 (l) 4 (l) 5

fully 36% at all

 

 

 

Do you feel you are more sensitive to some of the op-
tions available to local communities in cable television
planning?

yes (9) no (1)

 

How well does the C.T.P.E. give you a glimpse of the
dynamics of determining cable television decision?

1 2 (1) 3 4 ‘ (3) ' ‘5 “““ (6)
not at all well

 

 

 

Which of the below best describes the exercise instruc-
tions?

clear & concise (4) flexibleflLiL adequate (2)

 

inadequate
Do you have any suggestions:_fi(2)(Language‘level’perhaps
complex for all audiences) (Simplifylanguage) ------

 

To what degree did you become involved in the C.T.P.E.
exercise?

1 (6) 2(4) ._3 4 5
highly apathetic

 

 

 

 

Do you feel this exercise is an accurate model of the
reality it is attempting to represent?

1 2 _ (}),-— 3... ... 4"‘(6)’ ‘5‘“(3)'

 

 

r—‘i xx-z- _ 4...)! mar-._: I: :finmm

inaccurate accurate

continued

225

TABLE 2--Continued

 

 

10.

How do you rate this exercise on the clarity scale
below?

 

 

 

 

1 2 3 (l) 4. (8) '5"‘(l)“
impossible confusing easy to
to understand understand

How do you feel about the information given in the
decision points?

1 2 3 (4) 4‘ (5) 5 "(l)'

not enough adequate too much

 

Have you ever participated in an activity similar to
the C.T.P.E. before?

Yes_igl__ No_l§l_

Any comments or suggestions: (6) Sharpen conflicts in
decision points; simplify language; very involving'&'en-
joyable; use media to introducquam 7 adapt language'

for non-college audience; challenging!

 

226

TABLE 3

FIELD TEST II EVALUATIONS OF THE CABLE TELEVISION
PLANNING EXERCISE

 

 

How well do you feel you learned a systematic process
for determining cable television policy in local com-
munities? (Check one)

1 (4) 2 (2) 3 4 ' ' ’5"
full not at all

 

 

 

 

 

Do you feel you are more sensitive to some of the op—
tions available to local communities in cable television
planning?

yes (6) no (0)

How well does the C.T.P.E. give you a glimpse of the
dynamics of determining cable television decisions?

1 2 3 4. (2) .5...(4)..

not at all well

 

 

 

 

Which of the below best describes the exercise instruc-
tions?

clear & concise (4) flexible (2) adequate‘
inadequate

Do you have any suggestions:

 

(Vocabulary level may be problem with'some'audiences)

To what degree did you become involved in the C.T.P.E.
exercise?

1 (5) 2 (l) 3 > 4 ...... 5 .........

 

 

 

 

 

Do you feel this exercise is an accurate model of the
reality it is attempting to represent?
1 2 3 4 (1) ' 5 '(5)

inaccurate ‘ accurate

 

 

 

continued

TABLE

*1!

10°

227

TABLE 3--Continued

 

 

7.

10.

How do you rate this exercise on the clarity scale
below?

 

 

 

 

l 2 3 4 (4) 5 (2)
impossible confusing easy to
to understand understand

How do you feel about the information given in the
decision points?

1 2 3 (1) 4' '(4)' '5“ (1)'
not enough adequate too much

 

 

 

Have you ever participated in an activity similar to
the C.T.P.E. before?

yes (2) no (4)
Any comments or suggestions: (3) (Too muchpaper)

(Very interesting) (Learned something)

 

 

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228

Evaluation of Feedback and Results

 

From the information contained in Tables 2 and 3, cer-
tain tentative conclusions can be drawn about the effective»
ness of the Cable Television Planning Exercise. The word
"tentative" is used because the writer recognizes that the
number of evaluations obtained cannot, at this point, be
said to be representative of the universe of possible game
participants.

It appears, based on the information obtained, that
the participants felt they did achieve the objectives speci-
fied in the game. In Field Test I, the responses to Ques—
tions 1, 2, and 3, weighted heavily at the positive end of
the scale. Field Test I participants were told at the
beginning of the simulation that they would not be playing
the entire six decision point game, which may account for
the number of responses not marked under the "fully" altern-
ative for Question 1. The same situation existed for Field
Test II.

Over both field tests, the greatest majority (9wl and
6-0) of participants believed they were more sensitive to
issue options in planning cable television policy now than
before playing the simulation. And, as for how well the game
gave participants a glimpse of the dynamics or group inter"
actions involved in making cable television decisions, nine
of ten and four of six participants agreed the simulation

was an accurate representation.

229

In addition to specified objectives, participants were
asked general questions about the simulation game. Perhaps
the most encouraging to the writer were the responses to
Questions 5 and 6. In both field test situations, the par—
ticipants favorably responded to the game as an accurate
model of the reality it is attempting to represent, and
(Question 5) found that reality construct to be a highly inn
volving learning situation. Note too that the responses to
Questions 5 and 6 improved percentage wise from Field Test I
to II; a result that could possibly be attributed to the
writer's revision of certain decision points.

A final question, and probably the most valuable to the
writer, asked game participants to provide written comments
and suggestions for improvement. One of the most common
suggestions was to "lower" the vocabulary level in the game
to be more representative of all possible audiences. This
was done after Field Test I, but there was a similar comment
made on the second field test. It may be necessary to fur~
ther revise the material.

Another comment made after Field Test I was used to modiw
fy the initial prototype; the writer reviewed some of the
decision points and revised the information to heighten the
conflict. A comment also made after the first field test
suggested the introduction of slides, tape, etc., to present
decision point information. This may be done in future revi-

sions of the game to add another dimension to the playing

5888

play

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230

sessions. The game, however, should be designed to allow
playing groups the option to use print or non-print versions.
In conclusion, the information received from the two
field tests have provided some indication as to not only the
validity of the simulation game design, but also as to the
use of simulation games in general to handle complex cognim
tive and affective behaviors. Given the time constraints of
an instructional or community group setting, a properly
designed simulation game appears to be a most efficient means
of not only acquainting participants with certain cognitive
cable issues, but also to provide them with perhaps a more
valuable sensitivity toward the problems communities face in

developing local cable television policy.

Bae

Ca]

Ge

Ya

Zu

BIBLIOGRAPHY

Baer, Walter S. Cable Television: A Handbook for Decision-
Making (Santa MoniEa, California: Rand Corporation,
1973).

Cable Television Information Center, A Suggested Procedure:
An Approach to Local Authorization of Cable Television
(Washington, D.C.: The Urban Institute, 1973).

Gerlach, Vernon S. and Donald P. Ely. Teaching and Media,
A Systematic Approach (Englewood CIIffs, New Jersey:
Prentice Hall, Inc., 1971).

Yale Review of Law and Social Action. ‘The Cable Fable
(New Haven, Connecticut: Yale University Press, 1972).

Zuckerman, David and Robert Horn (eds.). 'The Guide to
Simulation Games for Education and Training (2nd Edi—
tion, Lexington, Massachusetts: Information Resources,
Inc., 1973).

231

Ba

Ca

Ca

LI ST OF REFERENCES

Baer, Walter S. Cable Television: A Handbook for Decision-
makin . Santa Monica, Calif.: Rand Corporation
(R-ll33-NSF), 1973.

Cable Television Information Center.’ A Su ested Procedure:
An Approach to Local Authorization 0 'Cable Television.
Washington, D.C.: The Urban Institute, 1973.

Cable Television Information Center. 'Cable: An Overview.
Washington, D.C.: The Urban Institute, 1973.

Cable Television Information Center. 'How to Plan An'Ordi-
nance. Washington, D.C.: The Urban Institute, 1973.

Federal Communications Commission. "Cable Television
Service; Cable Television Relay Service." 'Federal
Register, Vol. 37, No. 30, Part II (FCC 72-108), 2-12—72.
Washington, D.C.: U.S. Government Printing Office.

 

Ford Foundation, Comments in Response to Commission's Notice
of PrOposed Rulemakipg. New York: Ford Foundation,

1970.

International City Management Association. "Drafting Municin
pal Franchises for Cable Television Systems," in
Management Information Service, Vol. 4, No. LS-l.
Washington, D.C.: International City Management Associ-

ation, 1972.

Johnson, Leland and Michael Botein. Cable‘Television:” The
Process of Franchising. Santa Monica, Calif.: Rand

Corporation (R-1135wNSF), 1973.

Mitre Corporation, Urban Cgble Systems. McLean, Va.:
Mitre Corporation, 1973.

National Cable Television Association. Toward the Wired
Nation: The Financial Implications of Developing Cable
CommunicatiCns.’ Washington, D.C.: National Cable
Television AssoCiation, 1971.

232

Na

Ne

0r

P<

rn

rn

IA

IL

233

National Education Association. Cable Television: ‘Franchise
Provisions for SchOOls. Washington, D.C.: National
Education Association, 1973.

 

 

New York Public Service Commission. Regulation of cable
Television by the State of New York. Albany, N.Y.:
Public Service Commission, 1970.

 

 

Oppenheim, Jerrold. "Cable Television: Channels for
Dissent." Civil Liberties, No. 282 (December, 1971).

 

Powledge, Fred. ACLU Guide tojCable TV. New YOrk: American
Civil Liberties Union, 1973.

 

Price, Monroe and Michael Botein. Cable Television:” Citizen
‘Participation After the FranchiSe. Santa Monica, Calif.:
Rand Corporation (Rull39mNSF), 1973.

 

 

Price, Monroe, and John Wicklein, Cable TVnwA Guide for
' Citizen Action. Philadelphia: Pilgrim Press, 1972.

 

Shafer, Jon. A Cable TV Guide for Educators: Cable Communi-
' cations Comes to the Twin Cities Area. Minneapolis,
Minn.: College of Education, University of Minnesota,
1972.

 

 

Shamberg, Michael and the Raindance Corporation, Guerilla
Television. New York: Holt, Rinehart & Winston, 1971.

 

 

Sloan Commission, The. On_the Cable: The Television of
Abundance. New York: McGranHill, 1972.

 

Smith, Ralph Lee. "The Wired Nation." The Nation, special
issue (May 18, 1970).

 

Steiner, Robert L. The Prospects for Cable Television in
the Greater Cincinnati Area. Cincinnati, Ohio:
Stephen Wilder Foundation, 1973.

 

Tate, Charles. Cable Television and the Cities. Washington,
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