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                                Before the
                     Federal Communications Commission
                          Washington, D.C. 20554
                                     

In the Matter of  )
                  )     
Cablevision of Monmouth Inc.  )      CUID Nos.   NJ0428 (Freehold)
                  )     NJ0429 (Englishtown)
                  )     NJ0430 (Manalapan)
Complaint Regarding     )     NJ0556 (Colts Neck)
Cable Programming Services Tier Rates      )           NJ0557 (Marlboro)
                        

ORDER
        
        Adopted:  May 7, 1998                      Released:  May 11, 1998  

By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau:

  1.    In this Order we consider a complaint against the September 1, 1997 rate increase that
the above-captioned operator ("Operator") implemented for its cable programming services tier ("CPST")
in the communities set forth above.  We have already issued two prior orders concerning complaints filed
against Operator's CPST rates.  Operator has attempted to justify its CPST rate through a benchmark
showing on FCC Forms 1200, 1210 and 1235.  This Order addresses only the reasonableness of the
Operator's CPST rate of $17.55, effective September 1, 1997.

  2.    The Communications Act authorizes the Federal Communications Commission
("Commission") to review the CPST rates of cable systems not subject to effective competition to ensure
that rates charged are not unreasonable.  If the Commission finds the rate unreasonable, it shall determine
the correct rate and any refund liability.  The Telecommunications Act of 1996 ("1996 Act") and our
rules implementing the new legislation ("Interim Rules"), require that complaints against the CPST rates
be filed with the Commission by a local franchising authority ("LFA") that has received subscriber
complaints.  An LFA may not file a CPST rate complaint unless, within 90 days after such increase
becomes effective, it receives more than one subscriber complaint.complaints.  An LFA may not file a
CPST rate complaint unless, within 90 days after such increase becomes effective, it receives more than
one subscriber complaint.
                                                               
   3.   Cable operators attempting to justify rates for the period beginning May 15, 1994 through
a benchmark showing must use the FCC Form 1200 series.  Cable operators may also justify rate
increases based on the addition and deletion of channels, changes in certain external costs, and inflation,
by filing FCC Form 1210.  FCC Form 1210 must be filed at least 30 days before new rates are scheduled
to go into effect where the Commission has found the CPST rate to be unreasonable less than one year
prior to the filing, or where there is a pending complaint against the CPST rate.
   
   4.     FCC Form 1235 is an abbreviated cost of service filing used in cases of network upgrades. 
It allows cable operators to justify rate increases related to significant capital expenditures used to improve
rate-regulated services.  This option is extended only in cases of significant upgrades requiring added
capital investment, such as bandwidth capacity and conversion to fiber optics, and for system rebuilds. 
Normal improvements and expansions of service will remain subject to the usual rate adjustments allowed
by filings of FCC Forms 1210, 1220 and 1240.  Cable operators that incur increases in operating costs
associated with a significant network upgrade will be permitted to charge additional rates as justified by
their FCC Form 1235 filing.   

   5.     On February 17, 1998, the LFA filed a complaint regarding the September 1, 1997
increase in Operator's CPST rate in the communities referenced above.  In its complaint, the LFA asserts
that it has received more than one subscriber complaint against Operator's CPST rate increase and verified
that the first complaint was received on September 10, 1997, thereby triggering the Commission's
jurisdiction to review the complaint.  The valid complaint from the LFA triggers an obligation by the
cable operator to file a justification of its CPST rates with the LFA.  Thus, in this case, Operator is
required to justify the increase in its CPST rate which is the subject of the LFA's complaint. 

   6.     Operator's September 1, 1997 rate increase reflects not only the quarterly increase as
reported on FCC Form 1210, but also recovery of costs for its network upgrade as reflected on FCC Form
1235.  Operator initially filed its FCC Form 1235 on April 11, 1997 and selected the pre-approval
option.  On December 24, 1997, Operator submitted a revised FCC Form 1235.  Operator also chose
to allocate its Monthly Network Upgrade Add-on (Section III, Lines 4 and 5) to both its basic service tier
("BST") and its CPST rates.  Such an election is consistent with the FCC Form 1235 instructions.  

   7.      Upon review of Operator's FCC Form 1200 and its four FCC Forms 1210, we made
adjustments to Operator's fourth FCC Form 1210, covering for the period October 1, 1996 through
March 31, 1997.  Specifically, we adjusted Line A1 (Transition Rate) to $12.9777 to correspond with Line
K3 (Updated Transition Rate) of Operator's prior FCC Form 1210.  We also adjusted Line A2 (Permitted
Charge) to $13.3233 to correspond with Line K6 (Updated Permitted Charge) of Operator's prior FCC
Form 1210.  We also adjusted Line C14 (Previous External Costs per Tier per Subscriber) and Line C15
(Adjusted Previous External Costs) to $3.0369 to correspond to Line J7 (Current External Costs per
Subscriber) of Operator's prior FCC Form 1210.  These adjustments reduced Operator's maximum
permitted rate ("MPR"), effective April 1, 1997, to $13.95.

   8.     Upon review of Operator's revised FCC Form 1235, we find that its MPR, for the CPST,
of $4.79 is reasonable.  The combined MPR from Operator's fourth FCC Form 1210 MPR of $13.95, and
Operator's FCC Form 1235 MPR of $4.79, is $18.74.  Therefore, we find that Operator's CPST rate of
$17.55, effective September 1, 1997, is reasonable. 

   9.     Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that Operator's CPST rate of $17.55 effective September 1, 1997 in the communities set
forth above, IS REASONABLE.

   10.    IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the complaint referenced herein IS DENIED.
   
   
   FEDERAL COMMUNICATIONS COMMISSION 



   Elizabeth W. Beaty
   Chief, Financial Analysis and Compliance Division
   Cable Services Bureau