Agenda - Council - 08/23/1988 - Laserfiche WebLink

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, Ur./Mr. Hartley July 8, 1988 Page Four TOTAL COSTS The total cost of all of these exoenditures Is: Annual Total Dollars Per Sub Per Mo Franchise Fees Public access/local origination Bonding Office TOTAL $84,490.00 $189,683.00 $6,500.00 $89.980.00 $370,653.00 $1.45 $3.25 $0.11 $1.54 $6.35 The total of these costs represents 22% of NCTV's monthly revenue. It Is submitted that this level of expense mandated by the franchise, is unique to the entire cable industry, AND IMPLIES THAT LOCAL CABLE SUBSCRIBERS MUST BE EXPECTED TO PAY ABOVE-NORMAL RATES FOR THEIR CABLE SERVICE. IN SEEKING APPROPRIATE FRANCHISE MODIACATIONS. NCTV HAS NOT PROPOSED ANY REDUCTION IN THE LEVEL OF SERVICE NOW BEING PROVIDED. NOR IS NCTV PROPOSING THAT THE COMMISSION GIVE UP ANY BENEAT. NCTV IS SIMPLY REQUESTING THAT UNNECESSARY COSTS WHICH BENEAT NO ONE BE REDUCED TO REAUSTIC LEVELS. NCTV IS SEEKING ONLY TO SERVE SUBSCRIBERS MORE EFACIENTLY AND TO REDUCE PRESSURE ON RATES. Inefficiency mandated bJ regulation, needlessly places considerable pressure on NCTV's charges to Its subscribers, while not providing them (or anyone else), with any corresponding benefit. I Unless the requested cost reductions can soon be achieved, it is to be expected that these costs (like all business costs), I will soon find their way into the monthly fees which NCTV must charge its subscribers. It is obvious that a business must obtain sufficient revenue to cover each and every one of its costs and continued efforts to Ignore or to delay dealing with this problem will not make it go away. I NCTV's proposals for correcting the inefficiency in public access/local origination programming have been before the Commission for over two vears without formal action. I Accordingly, NCTV earnestly and respectfully requests the Commission to agree without delav. to the following requested franchise adjustments, permitting NCTV to eliminate wholly unnecessary, wasteful expenditures which otherwise, will soon be borne by residents/subscribers and must result in higher-than-normal rates for cable service for residents of the Commission's territory. I I 1. With respect to public access/local origination, adopt NCTV proposals #1 or #2 on page two (2). I 2. Reduce the required bonding level, as proposed by NCTV on page two (2) and three (3). 3. Permit NCTV to close the office, as proposed on page three (3).