PUBLIC NOTICE




FEDERAL COMMUNICATIONS COMMISSION
1919 M STREET, N.W.
WASHINGTON, D.C. 20554

News media information 202/418-0500. Recorded listing of releases and texts 202/632-0002.

Report No. CS 96-13   Cable Services Action       DA 96-311
                                                                March 8, 1996


       NEW THIRD QUARTER INFLATION FIGURE FOR CABLE OPERATORS USING 
                        FCC FORM 1240 NOW AVAILABLE


     As described in the instructions for FCC Form 1240, cable operators may adjust the
non-external cost portion of their rates for inflation based on quarterly inflation figures released by
the Commission.  The Third Quarter Inflation Figure for 1995 is 2.22%.  This number is an
annualized growth figure representing the inflation which occurred in the period from July 1, 1995
to September 30, 1995.  

     This figure is based on changes in the Gross National Product Price Index ("GNP-PI") as
published by the Bureau of Economic Analysis of the United States Department of Commerce.  It
was calculated by taking the GNP-PI from the Third Quarter of 1995 (107.922) and dividing by the
GNP-PI for the Second Quarter of 1995 (107.331).  The result of this calculation was then
converted from a quarterly growth figure to an annual growth figure by raising it to the fourth
power.

     Operators who are calculating the Inflation Factor for a True-Up Period which included
some portion of the Third Quarter of 1995 should enter this figure in the appropriate lines of
Worksheet 1 of FCC Form 1240 as "0.0222".  Operators for whom this is the most recently
released inflation figure and, therefore, the figure they will use for calculating the Projected Period
Inflation Segment should enter this number on Line C3 as "1.0222".

Media contact: Morgan Broman (202) 416-0852; Cable Services Bureau Contact:  Alex Byron at
(202) 416-0800.  

     --FCC--