2q. Triax Cablevision: Opposition to Small System Rate Relief.1
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MEMORANDUM
CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
DATE: January 3, 1996
SUBJ: Retroactive Approval of Chanhassen's Opposition to "Small System Rate Relief'
for Triax Cablevision .
On December 12, 1995, I was notified that Triax id, ,,app
Commission for "Small System Rate Relief " If'apprdve
currently have over Triax would be virtually eliminated.
Grogan, the city's consulting communications attomey`a
Chanhassen should formally object to an exemption for,71
"Response and Opposition to Petition for Special Relief"
submitted prior to the end of 1995. Accordingly, I would
approve Chanhassen's opposition to Trim's petition for
the response generated by Brian Grogan dated December
lied to the Federal Communications
1, the few regulatory authorities that we
In reviewing this item with Brian
ie both came to the conclusion that
riax. Accordingly the attached
was prepared. The petition had to be
,,ask that the city council officially act to
pecial relief, i.e. retroactively endorse
22x 1995 (see attached).
RECEIVM ■
OEC 2 6 1995
Before the CITY OF CHANHASSEN
FEDERAL COMMUNICATIONS COMMISSION
Washington, D.C. 200554 ,
In the Matter of ) '
Triax Midwest Associates, L.P. )
FCC File No.:
Application for Small System Rate Relief )
To: Chief, Cable Service Bureau )
RESPONSE IN OPPOSITION TO PETITION FOR SPECIAL RELIEF
On December 7, 1995, Triax Midwest Associates, L.P., ( "Triax "), by its attorneys and ■
pursuant to Section 76.7 of the Commission's rules, submitted a Petition for Special Relief
'
requesting that its Lake Minnetonka cable television syste m be p ermitted to establish rates for
regulated cable services in accordance with the small system cost -of- service methodology ,
adopted in the Sixth Report and Order and Eleventh Order on Reconsideration, MM Docket '
Nos. 92 -266 and 93 -215, FCC 95 -196, 10 FCC Rcd. 7393 (Rel. June 5, 1995) (the "Small
System Order "). The City of Chanhassen, Minnesota ( "City ") submits this response in ■
opposition to Triax's Petition for Special Relief because Triax's Lake Minnetonka system, by ,
Triax's own admission, serves more than 15,000 subscribers and granting Triax special relief
'
from the Commission's rules would not serve the public interest.
I. TRIAX'S LAKE MINNETONKA SYSTEM SHOULD NOT BE TREATED AS A
SMALL CABLE SYSTEM. ■
Section 76.901 of the Commission's rules provides the controlling numerical parameters
with respect to small systems owned by small cable companies. In particular, Subsection (c) ■
defines a "small system" as one with 15,000 or fewer subscribers. Triax's Lake Minnetonka I
3648/2TC01 !.DOC '
system has in excess of 15,000 subscribers and therefore does not qualify under the
I Commission's definition.
' II. THE GRANT OF TRIAX'S PETITION IS NOT IN THE PUBLIC INTEREST.
Triax's Lake Minnetonka system currently charges rates consistent with the
Commission's benchmark rates. Triax has always had the option to pursue a cost -of- service
p
' justification to support rates in excess of the Commission's benchmark rates. Triax has chosen
I not to pursue this option but rather now seeks ability to impose upon subscribers significantly
higher rates by utilizing Form 1230. The public interest would not be served by granting Triax's
Petition since, based on the best information available to the City, subscriber rates would
increase substantially were Triax permitted to avail itself of the small system cost -of- service
methodology. Based on the limited information available to the City, it appears that if Triax
' were ranted special relief and allowed to establish rates for regulated cable services in
g P g
' accordance with small system cost -of- service methodology, the rates within the City of
Chanhassen, Minnesota would increase by approximately one hundred twenty percent (120 %).
I III. CONCLUSION.
Because Triax's Lake Minnetonka system exceeds the system subscriber limit of 15,000
the Commission should not grant Triax's Petition for Special Relief. Triax is a multiple system
operator with a sufficiently large subscriber base and sufficiently large annual gross revenues
such that the administrative burdens imposed on Triax and the cost of complying with existing
Commission regulations are no more substantial than for other multiple system operators which
also fail to qualify under the Commission's small system order. For all these reasons the
Commission should deny Triax's Petition for Special Relief.
3648/2TC01 !.DOC
Respectfully submitted,
THE CITY OF CHANHASSEN,
MINNESOTA
Dated: December 22, 1995
By:
Brian T. Grogan
Moss & Barnett
A Professional Association
4800 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402 -4129
(612) 347 -0300
Its Attorneys
3648/2TC01 !.DOC
CERTIFICATE OF SERVICE
I, Susan L. Olson, of Moss & Barnett, A Professional Association, hereby certify that a
copy of the foregoing Response in Opposition to Petition for Special Relief was sent via United
States Postal Service, postage prepaid, this 22nd day of December, 1995, to the following:
J. Christopher Redding
Christopher T. McGowan
Dow, Lohnes & Albertson
1255 Twenty -Third Street NW
Washington, DC 20006
James Daniels, Administrator
Lake Minnesota Cable Communications Commission
540 Second Street
PO Box 473
Excelsior, MN 55331 -0473
Mr. Don Ashworth
City Manager
690 Coulter Drive
Chanhassen, MN 55317
Town of Loretto
City Hall
Loretto, MN 55357
Town of Maple Plain
1620 Maple Avenue
Maple Plain, MN 55359
Town of Mound
5341 Maywood Road
Mound, MN 55364
Town of Waconia
109 South Elm
Waconia, MN 55387
3648/2TC01 !.DOC
Town of Wayzata
City Hall
Wayzata, MN 55391
'
Meredith Jones, Esq.
Chief, Cable Services Bureau
'
Federal Communications Commission
2033 M Street NW, Room 801E
Washington DC 20554
,
Thomas C. Power, Esq.
,
Cable Services Bureau
Federal Communications Commission
2033 M Street NW, Room 406C
'
Washington DC 20554
l
Sus .Olson
3648/2TC01 !.DOC
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Before the
FEDERAL COMMUNICATIONS COMMISSION
Washington, D.C. 20554
In the Matter of
TRIAX MIDWEST ASSOCIATES, L.P.
Application For Small System Rate Relief
To: Chief, Cable Services Bureau
u
FCC File No.:
12 ,IZ - ,� s /
PETITION FOR SPECIAL RELIEF
TRIAX MIDWEST ASSOCIATES, L.P.
J. Christopher Redding
Christopher T. McGowan
Its Attorneys
DOW LOHNES & ALBERTSON
1255 Twenty -Third Street, N.W.
Washington, D.C. 20006
(202) 857 -2500
December 7, 1995
RECEIVED
E u 1. 'I '1995
CITY OF CHANHASSEN
TABLE OF CONTENTS
Page
I.
H.
TRIAX'S LAKE MINNETONKA SYSTEM SHOULD BE TREATED
AS A SMALL CABLE SYSTEM ... ............................... 2
A. TRLAX IS A SMALL CABLE COMPANY ............................. 2
B. THE LAKE MINNETONKA SYSTEM EXCEEDS THE SYSTEM
SUBSCRIBER LIMIT IN ONLY A DE MINIMIS FASHION .............. 3
C. THE COMMISSION HAS RECOGNIZED THAT SPECIAL
RELIEF IS APPROPRIATE FOR CABLE OPERATORS IN
TRIAX'S POSITION ............... ............................... 4
1. The Lake Minnetonka System has a Subscriber Density
Below the Average of Qualifying Small Systems ................... 6
2. The Lake Minnetonka System Shares Other Relevant
Characteristics With Qualifying Small Systems ................... 7
3. Grant of Triax's Petition Is In The Public Interest .................. 7
CONCLUSION......................... ............................... 9
' Before the
' FEDERAL COMMUNICATIONS COMMISSION
Washington, D.C. 20554
' In the Matter of )
TRIAX MIDWEST ASSOCIATES, L.P. ) FCC File No.:
Application For Small System Rate Relief )
' To: Chief, Cable Services Bureau
PETITION FOR SPECIAL RELIEF
' Triax Midwest Associates, L.P., ( "Triax "), by its attorneys and pursuant to Section 76.7
' of the Commission's Rules, hereby requests that its Lake Minnetonka cable television system,
which provides cable television service to 20 separate Minnesota communities (the "Lake
Minnetonka System'% ' be permitted to establish rates for regulated cable services in
' accordance with the small system cost -of- service methodology adopted in the Sixth Report and
' Order and Eleventh Order on Reconsideration, MM Docket Nos. 92 -266 and 93 -215, FCC
95 -196, 10 FCC Rcd 7393 (rel. June 5, 1995) (the "Small System Order "). The Lake
' Minnetonka System was clearly eligible for small system relief under the Small System Order at
' the time the Small System Order was released by the Commission on June 5, 1995. However, in
August, 1995 the Lake Minnetonka System began serving more than 15,000 subscribers. Triax's
Lake Minnetonka System currently falls just over the standard eligibility cap established by the
Commission in the Small System Order. It is, however, precisely the sort of cable system for
which the Commission established a "special relief' mechanism to extend eligibility. The public
l/ The Minnesota communities served by the Lake Minnetonka System are listed in
' Exhibit A attached hereto.
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policy goals underlying the Small System Order and basic fairness compel a grant of the
requested relief.
I. TRIAX'S LAKE MINNETONKA SYSTEM SHOULD BE TREATED AS A
SMALL CABLE SYSTEM
Eligibility for special rate treatment under the Small System Order is generally for small
systems owned by small cable companies. The recently amended Section 76.901 of the
Commission's Rules provides the controlling numerical parameters. Subsection (c) defines a
"small system" as one with 15,000 or fewer subscribersY Most forms of small system rate relief
are available only to those small systems that are owned by a small cable company, which is
defined as a cable operator that serves a total of 400,000 or fewer subscribers over all of its
systems.!
A. TRIAX IS A SMALL CABLE COMPANY
Triax has always been a "small cable company" as that term is currently defined by the
Commission's regulations. Triax is a privately owned limited partnership which is controlled by
Triax Communications Corporation ( "TCC "). TCC controls three other limited partnerships
which own various cable systems throughout the countryY TCC and its affiliated companies
operate approximately 450 cable systems which serve over 1,000 separate communities in
2/ Small System Order, 10 FCC Rcd at 7406.
3/ Id.
4/ TCC currently controls Triax Associates I, L.P., Triax Cablevision USA, L.P.,
Triax Southeast Associates, L.P. and Triax Midwest Associates, L.P. Triax Associates V,
L.P. was sold by its partners effective August 30, 1995. Exhibit B shows the breakdown of
subscribers for each TCC entity.
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17 states, mostly in rural areas. The average size of these systems is under 900 subscribers per
system.
I On August 21, 1995, the effective date of the Small System Order , TCC and its affiliated
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companies had under 400,000 basic service subscribers nationwide.!' Moreover, as of the date of
this Petition, TCC and its affiliated companies continue to serve fewer than 400,000 basic
service subscribers.t'
B. THE LAKE MINNETONKA SYSTEM EXCEEDS THE SYSTEM
SUBSCRIBER LIMIT IN ONLY A DE MINIMIS FASHION
On the effective date of the Small System Order, each Triax cable system served fewer
than 15,000 subscribers except for the Lake Minnetonka System which exceeded the 15,000
subscriber limitation by approximately 47 subscribers.' -' Triax's cable subscribers in the
communities referenced in this Petition are now served by a single system and headend. This is
the result of a process of consolidation of 3 separate cable systems by Triax in 1990 and 1992, a
51 Attached as Exhibit C are copies of the relevant pages from the 1995 Cable & Station
Coverage Atlas (Warren Publishing) and the November 22, 1995 newsletter Cable TV Investor
No. 496 (Paul Kagan Associates), confirming the fact that TCC has less than 400,000 basic
subscribers as of August 31, 1995.
6/ See Declaration of Mr. Daniel Callahan, attached as Exhibit D, which confirms that
TCC and its affiliates collectively serve less than 400,000 subscribers as of the date of this
Petition.
7/ At the time it filed Form 1230 with the Commission in early October, 1995, Triax
believed the Lake Minnetonka System was under the 15,000 subscriber cap. However, after
reviewing updated August and September installation and billing records and reports for the
Lake Minnetonka System, Triax corporate personnel became aware that the Lake Minnetonka
System had crossed over the 15,000 subscriber threshold some time in late August, 1995.
Triax is unable to precisely determine the exact date in August that the Lake Minnetonka
System exceeded the 15,000 subscriber cap.
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process which has resulted in a substantial upgrade in system capacity and services to all
subscribers.
As now consolidated, the Lake Minnetonka System barely exceeds the 15,000 cap
established under the new regulations. The Lake Minnetonka System exceeds the cutoff in a
truly de minimis fashion. On the release date of the Small System Order, the Lake Minnetonka
System had approximately 14,967 basic subscribers. However, by the end of August, 1995, the
Lake Minnetonka System grew to approximately 15,047 basic subscribers and is now
approximately 15,467 basic subscribersY
In Insight Communications Company, L.P. , the Commission granted a small system
waiver to three cable systems that were clearly over the established system subscriber cap and
that ranged from 16,328 to 17,798 subscribers. The Commission concluded the subscriber totals
for these systems were "a relatively small amount" over the cutoff and granted the Petition.L"
The Lake Minnetonka System is even closer to the established subscriber cap than the three
systems in the Insight Order.
C. THE COMMISSION HAS RECOGNIZED THAT SPECIAL RELIEF IS
APPROPRIATE FOR CABLE OPERATORS IN TRIAX'S POSITION
It would be illogical to deny Triax the relief afforded small cable entities when the Lake
Minnetonka System is slightly over the 15,000 subscriber cap. The Commission has already
8/ See Exhibit E (Lake Minnetonka System subscriber information).
9/ DA 95 -2334 (Cable Services Bureau, Released November 13, 1995) ( "Insight
Order ").
10/ Insight Order at ¶ 29.
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acknowledged the appropriateness of extending small system rate relief to systems that are
beyond the standard numerical cut -offs. The Commission sensibly explained:
We recognize that establishing a numerical test can exclude some systems which
may also be in need of rate relief. Therefore, we will entertain petitions for
special relief from systems who fail to meet the new definitions but are able to
demonstrate that they share relevant characteristics with qualifying systems and
therefore should be entitled to the same regulatory treatment.
Small System Order at 7412 -13. Simply stated, the Small System Order properly recognized that
it would be absurd to inflexibly distinguish between two systems "merely because ... one is just
extending rate relief to those small cable operators and small systems in need of it would further
under, and the other just over, 15,000 subscribers." Id. The Commission has determined that
specific congressional goals set forth in the 1992 Cable Act's Statement of Policy. L"
In establishing the parameters for extending small system relief, the Commission
identified in the Small System Order certain relevant characteristics of systems with fewer than
15,000 subscribers, including a significantly lower average number of subscribers per mileA'
The Small System Order also held that other factors potentially relevant to a petition for special
relief include "the degree by which the system fails to satisfy either or both definitions, whether
the system recently has been the subject of an acquisition or other transaction that substantially
reduced its size or that of its operator and evidence of increased costs (e.g., lack of programming
or equipment discounts) faced by the operator." L"
11/ Small System Order at 7406 -07.
12/ Id. at 7408.
IN Id. at 7412 -13.
Triax and the Lake Minnetonka System are affected by many of the relevant factors
identified by the Commission. In this case, Triax unquestionably meets one of the numerical
definitions (operator size) and just barely misses the other for only one of its systems — the
Lake Minnetonka System. The Lake Minnetonka System is in need of the same rate relief that
Triax's other cable systems will receive due to being under the 15,000 subscriber cap.
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1. The Lake Minnetonka System has a Subscriber Density Below the
Average of Qualifying Small Systems I
The Commission adopted the 15,000 subscriber threshold for small systems "on the basis
of shared economic, physical, and financial characteristics" for any systems at or below that
size.L' Based on the available data, the Commission found that systems with fewer than 15,000
subscribers differ from systems with more than 15,000 subscribers with respect to many
characteristics, in particular subscribers per mile of cable plant. Specifically, the Commission
found that "the average number of subscribers per mile is 35.3 for systems with fewer than
15,000 subscribers and 68.7 for systems with more than 15,000 subscribers. "L'
The Lake Minnetonka System serves approximately 29 subscribers per mileA' The
Lake Minnetonka System serves customers in 20 different communities which are not densely
populated areas. -L" As recognized by the Commission:
14/ Small System Order, 10 FCC Rcd at 7408. .
15/ Id.
16/ See Exhibit E (plant mileage and subscriber counts as of various relevant dates); see
also Exhibit D (Declaration of Daniel Callahan).
17/ The three systems granted waivers in the Insight Order served relatively few
communities when compared with Triax. See Insight Order at ¶ 29.
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a smaller system serving a large rural area faces increased costs
due to the increased amount of cable that must be installed to reach
the entire area and increased operating costs given the greater
amount of facilities that must be maintained. `L"
At 29 subscribers per mile of cable plant, Lake Minnetonka System is substantially below the
average of other qualifying small systems.
2. The Lake Minnetonka System Shares Other Relevant Characteristics
With Qualifying Small Systems
The Small System Order also identified "increased costs (e.g., lack of programming or
equipment discounts) as a justification for extending small cable entity relief." Small System
Order at 17412. This consideration clearly supports the instant Petition. The "bulk" discounts
for programming and equipment acquisition, which provide larger operators with substantial
savings, are unavailable to Triax. Unlike the cable operator in the Insight Order, Triax is not
affiliated with a larger MSO that enables it to receive significant programming and equipment
discounts. Because it is not affiliated in any way with a larger MSO, Triax clearly faces
increased costs similar to other small cable companies for programming and equipment.
Additionally, because it does not have the economies of scale that a large MSO does, Triax has
higher costs on a per subscriber basis for managing and operating its systems.
3. Grant of Triax's Petition Is In The Public Interest
Triax's Lake Minnetonka System is in as much need of small system rate relief as are the
Triax small systems that qualify for it automatically or the systems given relief in the Insight
Order. The Lake Minnetonka System is the only system Triax operates that is even close to the
15,000 subscriber cutoff. Triax is asking for very limited relief for its Lake Minnetonka System.
18/ Small System Order at 1 7401-7402; Insight Order at 1 3 1.
It is not asking to be exempt from rate regulation, but only to be eligible for the administrative
benefits afforded small cable entities under the Small System Order. The requested relief requires
only a very minor "relaxation" of the established system subscriber numerical cap.
Grant of the requested waiver will serve the public interest by allowing Triax and the
twenty communities served by the Lake Minnetonka System to avoid the substantial
administrative burdens of the revised benchmark regulations. The relief also is critical to Triax
continuing to enhance the cable television services delivered to all of the subscribers served by
its Lake Minnetonka System. Moreover, availability of the waiver under these circumstances will
impact future decisions by Triax and other operators to consolidate and upgrade systems.
Denying small system relief to the Lake Minnetonka System would clearly penalize Triax
for having consolidated several smaller cable systems and for having upgraded its cable plant and
cable services to attract new subscribers. Denying small system relief for Triax's Lake
Minnetonka System would create a perverse incentive for operators near the 15,000 subscriber
cap to avoid taking any action (such as consolidating systems or improving services and program
offerings) that might have the effect of increasing subscriber growth. This result would clearly be
inconsistent with the 1992 Cable Act which was intended to "ensure that cable operators continue
to expand, where economically justified, their capacity and the programs offered over their
systems... ."L' Fortunately, the Commission has not taken such a narrow approach to small
19/ Section 2(b)(3) of the Cable Television Consumer Protection and Competition Act
of 1992, Public Law No. 102 -385, 106 Stat. 1460 (1992); see also, 47 U.S.C. § 521(2); Small
System Order, 10 FCC Rcd at 7407.
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' system rate relief, and grant of the requested waiver is clearly within the guidelines established by
the Commission.
II. CONCLUSION
Because the Lake Minnetonka System exceeded the system subscriber limit in a de
minimis manner and because of the mitigating factors discussed in this Petition, the Commission
' should ant this Petition for Special Relief. Triax requests �' p q is that the Commission waive the small
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system subscriber cap contained in Section 76.901(c) of the Commission's Rules and permit Triax
to utilize the rate relief established by the Commission in its Small System Order for its Lake
Minnetonka System, effective August 21, 1995. Triax also requests that the Commission
expedite action on this Petition so that the administrative burdens imposed on Triax and the costs
of complying with existing Regulations will be substantially reduced. See Small System Order,
10 FCC Rcd at 7407.
DOW LOHNES & ALBERTSON
1255 Twenty -Third Street, N.W.
Washington, D.C. 20006
(202) 857 -2500
Its Attorneys
December 7, 1995
' 20/ See Small System Order, 10 FCC Rcd at 7412 -13, 13 6; Insight Order at ¶ 33.
Respectfully submitted,
TRL4 X MIDWEST ASSOCIATES, L.P.
Exhibit A
COMMUNITY
FCC COMMUNITY UNIT NO.
Chanhassen, Minnesota
MN0577
Deephaven, Minnesota*
MN0574
Excelsior, Minnesota*
MN0566
Greenwood, Minnesota*
MN0573
Long Lake, Minnesota*
MN0572
Loretto, Minnesota
MN0664
Maple Plain, Minnesota
MN0665
Medina, Minnesota*
MN0568
Minnetonka Beach, Minnesota*
MN0565
Minnetrista, Minnesota*
MN0562
Mound, Minnesota
MNO325
Orono, Minnesota*
MN0567
St. Bonifacius, Minnesota*
MN0563
Shorewood, Minnesota*
MN0570
Spring Park, Minnesota*
MN0564
Tonka Bay, Minnesota*
MN0571
Victoria, Minnesota*
MN0576
Waconia, Minnesota
MN0666
Wayzata, Minnesota
MN0569
Woodland, Minnesota*
MN0575
* Member of the Lake Minnetonka Cable Communications Commission
' Exhibit B
MSO Subscriber Count
I Basic Subscribers
Triax Entity 5/31 /95 8/31/95 11/30/95
*Includes SMATV subscribers
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Triax Associates I, L.P.
51,720
52,324
50,222
Triax
Cablevision U.S.A., L.P.
153,831
153,138
151,502
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Triax Southeast Associates, L.P.
54,874
54,557
55,362
Triax Midwest Associates, L.P.
128,073
128,329
129,248
Triax Associates V, L.P.
9,633*
-- - - - - --
-- - - - - --
TOTALS
398,131
388,348
386,334
*Includes SMATV subscribers
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Exhibit C �
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TOP CABLE SYSTEM OPERATORS AS OF AUGUST 31, 1995
PAUL KAGAN ASSOCIATES, INC.
126 CLOCK TOWER PLACE
CARMEL, CALIFORNIA 93923 -8734
(408) 624
-1536
Basic
Exp.
Pay
Mini
Homes
- -- Percentage
Ratios-- -
Rank Company
Subs
Basic
Units
Pay
Passed
Bas /HP
Pay /Bas
Pay /HP
(000)
(000)
(000)
(000)
(000)
1
Tele -Comm. Inc. (1,5,e)
13,381
12,042
8,604
5,009
21,565
62.1k
64.3k
39.9*
2
Time Warner Cable (2,e)
10,129
3,948
6,786
16,337
62.0
67.0
41.5
3
Comcast Cable Comm. (4,e)
3,358
2,887
5,597
60.0
86.0
51.6
4
Continental Cblvsn. (3)
3,228
2,760
5,404
59.7
85.5
51.1
5
Cox Cable Comm. #
3,216
3,099
1,842
98
5,002
64.3
57.3
36.8
6
Cablevision Systems #
2,674
4,429
4,266
62.7
165.6
103.8
7
Adelphia Comm. (8,e)
1,641
828
2,333
70.3
50.5
35.5
8
Cablevision Ind. (e)
1,439
859
2,141
67.2
59.7
40.1
9
Jones Intercable
1,356
1,291
1,32.1
2,254
60.2
97.4
58.6
10
Viacom
1,161
1,123
935
1,777
65.3
80.5
52.6
11
Falcon Cable TV
1,118
647
357
5
1,288
86.8
31.9
27.7
12
Sammons Comm.
1,098
1,065
595
1
1,627
67.5
54.2
36.6
13
Century Comm. (e)
1,069
609
1,775
60.2
57.0
34.3
14
Charter Comm.
811
797,
530
18
1,419
57.2
65.3
37.3
15
Colony Comm. (e)
811
505
1,267
64.0
62.2
39.9
16
E.W. Scripps
752
752
642
1,183
63.6
85.3
54:3
17
Lenfest Comm. (5,6)
744
723
523
1,092
68.1
70.3
47.9
18
Prime Cable (e)
655
502
535
1,201
54.5
81.8
44.6
19
TKR Cable (1,5,e) •
640
530
526
43
936
68.4
82.2
56.2
20
TCA Cable # (9)
568
421
364
765
74.2
64.1
47.6
21
Marcus Cable Ptrs.
563
540
375
854
66.0
66.6
44.0
22
InterMedia Ptrs. (5,7)
561
423
845
66.3
75.4
50.0
23
MediaOne (f,e)
514
464
295
840
61.2
57.4
35.1
24
Post - Newsweek Cable
510
468
274
26
702
72.6
53.7
39.0
25
Multimedia Cablevision
452
395
333
734
61.6
73.5
45.3
26
Tele -Media (e)
442
437
163
635
69.5
37.0
25.7
27
Triax Communications (e)
389
291
919
11
5133
66 9
Sr,
37-3
28
C -TEC
367
278
178
15
601
61.1
48.5
29.6
29
Rifkin & Associates
335
196
468
71.6
58.5
41.9
30
Western Communications
330
318
165
6
438
75.5
49.8
37.6
31
Columbia Intl. (5,e)
270
178
9
424
63.7
66.0
42.0
32
Service Electric (e)
249
93
342
72.9
37.4
27.3
33
SBC Media Ventures (e)
247
239
207
42
407
60.6
83.8
50.9
34
Harron Communications
245
232
147
7
353
69.6
59.8
41.6
35
Greater Media
239
228
246
375
63.6
102.9
65.5
36
Media General (e)
234
210
231
67
336
69.5
99.0
68.8
37
U.S. Cable Corp.
227
212
134
360
63.1
59.1
37.3
38
Bresnan Comm. * (e)
205
194
100
29
306
67.2
48.5
32.6
39
Garden State Cable
197
151
290
68.0
76.3
51.9
40
Armstrong Utilities
189
106
235
80.3
55.9
44.9
41
Northland Comm.
174
169
53
2
251
69.4
30.6
21.2
42
United Video Cablev.
162
155
75
7
216
75.0
46.0
34.5
43
Insight Communications
160
155
91
7
301
53.1
57.0
30.3
44
Simmons Comm. (e)
156
148
59
218
71.5
37.6
26.9
45
Blade Communications
156
153
79
1
242
64.4
50.7
32.7
46
Pencor Services (e)
152
68
175
87.1
44.9
39.1
47
Fanch Comm. (e) #
144
68
6
223
64.5
47.2
30.5
48
Booth American
141
135
65
2
202
69.8
46.3
32.3
49
New Heritage Assoc. (e)
138
16
98
274
50.5
70.6
35.6
50
Multivision
138
129
73
220
62.4
52.8
33.0
(over)
ABLE SYSTEM OPERATC=.S AS OP
Rank Company
AUGUST
Basic
Subs
31 1995 (P.
Exp. Pay
Basic Units
2 of 2)
Mini
Pay
Homes
Passed
- -- Percentage Ratios - --
Bas. /HP Pav /Bas. Pay /HP
(000)
(000)
(000)
(000)
(000)
'
51
Susquehanna Cable
132
75
64
7
176
75.1%
48.3%
36.30
52
Buford Television
132
132
83
9
234
56.4
62.5
35.3
53
Prestige Cable
130
126
63
179
72.5
48.8
35.4
54
Classic Cable
124
46
167
74.3
37.0
27.5
55
Coaxial Communications
119
107
95
213
55.7
80.5
44.9
56
Wehco Video
117
ill
50
146
80.3
42.4
34.1
57
Midcontinent Cable Co.
112
6
64
184
60.7
57.1
34.7
58
Sonic Communications (7)
109
69
179
60.9
63.5
38.7
59
Douglas Comm. (e)
106
56
179
59.2
53.3
31.6
60
Mission Cable (e)
87
35
154
56.6
40.4
22.9
61
Helicon Corp.
87
35
116
75.0
40.2
30.2
62
Great Southern
87
84
49
118
73.5
56.5
41.5
63
Cablevision of Texas (e)
83
28
131
63.1
33.4
21.1
64
James Comm. (e)
82
79
30
128
64.0
36.4
23.3
65
Galaxy Cablevision
81
38
129
63.0
46.2
29.1
66
Chambers Comm. Corp.
78
25
119
65.7
31.3
20.6
'
67
Benchmark Comm.
73
67
58
12
106
69.2
79.7
55.1
68
Masada Corp. (e)
69
59
27
123
56.1
39.2
22.0
69
Star Cable Assoc.
68
57
38
112
60.9
56.3
34.3
70
State Cable TV
66
60
33
84
78.3
50.4
39.5
71
Cable America
64
63
53
132
48.2
83.8
40.4
'
72
World Company
60
14
76
79.8
24.0
19.2
73
Schurz Communications (e)
60
58
44
3
80
75.6
73.2
55.3
74
Donrey Media Group
60
58
31
80
74.4
52.3
38.9
75
Americable Intl.
58
32
118
49.3
55.6
27.4
76
Fairbanks Comm.
58
23
73
79.1
40.2
31.8
77
Verto Cable TV
57
57
26
88
64.7
45.9
29.7
78
New England Cablevision
49
47
24
59
82.3
49.4
40.6
79
Eastern CT Cable
46
44
21
59
77.9
45.8
35.7
'
80
Levine, Nathan (e)
45
25
74
61.2
54.2
33.2
81
Cable Holdings
43
20
4
68
64.4
47.0
30.2
82
Raystay Co. (Waymaker) #
43
32
is
59
73.7
40.6
29.9
83
Massillon Cable
42
19
1
45
94.4
45.9
43.3
84
Catawba Services
42.
32
21
70
59.8
49.7
29.7
85
Moffat Comm.
41
39
21
3
69
59.0
51.4
30.3
86
WestStar Comm. (e)
40
38
19
65
61.7
46.8
28.8
87
Summit Comm. /WA (e)
36
10
2
59
60.9
27.4
16.7
88
Leonard Comm. (e)
35
33
10
54
65.0
29.5
19.2
89
Harmon Cable Comm.
35
33
14
2
45
77.1
39.4
30.4
90
Community TV (e)
30
24
43
69.1
81.4
56.3
91
Joseph Gans Cable TV (e)
28
27
7
33
84.4
26.4
22.3
92
St. Joseph Cable
27
9
36
74.2
34.8
25.8
93
Regional Cable (MW1)
26
23
4
61
43.1
15.3
6.6
94
Alaskan Cable Network (n)•
26
21
18
39
65.9
69.8
46.0
95
Tel Com (e)
24
2
25
94.1
7.8
7.3
96
Par Cable (e)
21
10
27
77.5
47.0
36.4
97
First Carolina Comm. (e)
19
5
26
74.7
28.0
20.9
98
Rock Associates
10
10
9
14
71.3
92.6
66.1
Totals /Averages: 0
60,485
33,560
42,340
5,434
95,262
63.5%
70.0V
44.4V
4 Chg. 7195 -8195:
0.48%
0.44%
2.04%
2.574
0.454
Unless otherwise noted, sub counts include owned and managed subscribers. (e) PKA est.
(f) Formerly Southern Multimedia Comm. (n) new to list in 1995. * Owned in part by TCI
(footnote 1) . # Counts reflect recent sale or acquisition. 0 Totals eliminate duplicate
Continental /Insight, Lenfest /Garden State, Lenfest /Susquehanna and TKR /TCI sub counts.
(1) Total gross TCI owned /affiliated basics: 15,266,352. (2) Time Warner Cable count
includes loot Paragon, 100t KBLCOM and 100t Summit Communications. (3) Continental count
includes 34t of Insight (MSO #43). (4) Proforma 40t Garden State Cablevision (78,958),
Comcast sub count would be 3,437,158. (5) Partially owned by TCI: Lenfest 50t;
Intermedia 544; Columbia 40t; and other various 4 of non - listed cable holdings. Total TCI
off balance sheet jv Gross subs: 3,107,000. (6) Lenfest counts reflect 40t equity in
Garden State Cable (MSO #39). (7) Intermedia Partners owns 37t of Sonic Communications.
(8) Adelphia counts include 1004 Telesat Cable and 299,902 managed subs. (9) Correction:
TCA subs a 7195 = 551,055.
1995 Paul Kagan Associates, Inc. from MSO data. All rights reserved. I
C
I
1.
Teb- Camn�icasm tic.'
11,135,342
7,129,314
18,819,291
237,406
3,1 ,396
2.
Ttm Wormer Cable b
7,300
5,100,000 `
12.000.000 `
122,000 `
3,000.000 `
`
CM=WCap.
3,300.435
2,675,951
5,570,395
61,114
1,313,341
4.
Cac Cable ConwadcaYona
3,137,069
2,869.796
1,958,671
2.443.645
4.975,526
5,036,704
49,099
58,000 `
1.377,900
1,500.000 `
S.
6.
CadnsnW CebWAdon tic.
CebWASIM Systerm Cap,
2,582.000
4.073,000
4,264,000
39,717
1,324,445
7.
NwAiofieBcd&
1,405,628
1,049,473
1.959,100
29,956
23.000
701,261
684.660 0
8.
Amp& Cmffadca11om Cap.
1,381,041
1. 372, 308
658,464
818294
1,94915
2,097,863',
35,000
437,573
9.
it
Cab nwm twusmn tic.
Jones t lerca"I tic. (taffnwv Jones Spacd* Ltd.)
1085,231
969,385
2,139,480
28,300
480.000
11.
Vlecom Cable
1,119,434
1,098,734
851
401,046
1,7466367 `
1,309.44
14,266
29,455
441,928
393,079
it
13.
Faloon Cable TV
Sammons Cam wkdbm Inc.
1.077.901
611,619
400.000"
1,46,354
1.650.000"
18,544
20,344"
- 556,291
X70,000"
14.
CeiMuyCamiudcalfarCap.
IML a
947 ,000
7g
459:737
1,394,499
WA
WA
15.
16.
Clixw Com wdcdau
Calory Cannuricd9 m tic. `
I M
787,406
501,218
1.246.785
13,442
18,234"
414.105
272,000 `
17.
E. W. Sa ws Co.
724,082
643,157
530.117
1,183,00E
1,297,018
10,155"
320.819
19.
Latest Co M u�icatlone Inc.
6116,0511
453.764.
111101. .
11.399
232,560 ".
20.
TKR Cable CL'
6043
497,350
1189,2=2
9.449
134,500.
21.
Pd= Cable Cap.
587,069
562,646
1,174,668
8,811
378,518
22.
kodA kPoo we =
552.128
540,M
393,170
338.557 `
813,772
875.790 `
15,421
14,900. `
140,903"
133,464
23.
24.
Moran Cable
Post-NewsweekCablelnc.
489,485
269.876
891
9.410
181,770
25.
TCA Cable TV Ins
483,494
470.391
363,284
270.272
064,086` -
804.040
10,304
11,238"
249,928
226,470
26.
27.
U S Went tic
Tels lilmiaCorp.
430,068
158.249
808,512°
10,203"
WA
28.
MuomWkCabkNeionIna
f 424=
39206
323,564
232.792
74,385
546.824
8.750
10,200
80,000
13,506
29.
Rft & AmL
Td Cwrvu* Mom Cam
374 806
234,920
567
14.089
20.000
30
31.
Western Cammuicdm
312,152
159,888
433,532
4,555'
90,099
32.
C-TEC Cable Systems
& -I
278.780
260,000
146,754
198,200
420,882
411.000
9,450
4,910
180.000
145,000
33.
34.
Cotmba ho rrel tia
Smoice Electie Cable TV tie.
242.000
80.575
368,000
5.580
85,000
35.
S8C Msaa Venliee
-
241,000
233,874
240.000
146,971
393.000
341.410
3,850
6,388
140.000
114,875
36.
37.
Hanon Camraaic I Cap.
Grealer Media tie.
231,500
206.620
36408
3.044
175,000
38.
Medla Gowd 4c.
225,571
216,296
214.472
131.976
330,382
352,097
4,282
5,202
207,026
123.000
39.
40.
US Cable Corp.
�AIiMVlsioriCablelVCap,
213,997
151,911
361,873
3,247
131,965
41.
Fan m ch Cmmudcall tic.
210,000
200,615
80.000 `
117.962
280,000 `
297.182
WA
5.092
WA
18,089
42.
43.
A qr CME"licallons Co.
Garden Stale Cableri m LP.
193,459
154,211
285.937
3,200"
115,519'
4.
kmdmng Mms InL
184,000
180
100,794
168,000
230.413
440.350
4,697
3,800
WA
155.000
45.
46.
Gaylord Woadco5ft Co.
Na114arrd Commmicallms Cap.
166,167
53.077
244,582
5,683
10.000
6,495
47.
&mnt Connaarca11om Group trc.
160,873
93,158
59.678
236.406
227.154
4,236
4,249
65,800
48.
49.
Affwi= Cable EnlerfairwM
Unked Video CabWAsim trc.
160.056
157,753
78,346
217,824'
6,301
34,663
50.
Bade Cammutallm trc.
150.523
79,463
238.861
2,000
110.000
Tete--FM 4 ...............................
53,1117,!=7
311,97=.788
85.47.144
1.p2,827
4735.938
wne1114lrblfWtM'81M CAb
1
1
Exhibit D �
1
I
DECLARATION OF �
DANIEL CALLAHAN 1
u
1
1
Before the
FEDERAL COMMIUNICATIONS COMN[ISSION
Washington, D.C. 20554
In the Matter of )
TRIAX MIDWEST ASSOCIATES, L.P. )
Application For Small System Rate Relief )
DECLARATION OF DANIEL P CALLAHAN
I, Daniel P. Callahan, Director of Business Administmtion of Triax Communications
Corporation ("TCC "), do hereby declare as follows:
1. Thax Midwest Associates, L.P. ("Triax "), a privately owned limited partnership
controlled by TCC, owns and operates a cable television system serving 20 separate communities
in the Lake Minnetonka, Minnesota area (the "Lake Minnetonka System "). TCC controls three
other limited partnerships, Triax Associates I, L.P., Triax Cablevision USA, L.P. and Triax
Southeast Associates, L.P., each of which owns various cable systems throughout the country.
TCC 'and its affiliated companies operate approximately 450 cable systems which serve over
1,000 separate communities in 17 states, mostly in rural areas.
2. On August 21, 1995, TCC and its affiliated companies had under 400,000 basic
service subscribers nationwide. As of the date of this Affidavit, TCC and its affiliated companies
continue to serve fewer than 400,000 basic service subscribers.
3. As of this date, Triax's Lake Minnetonka System serves approximately 29
subscribers per mile.
4. I have read the "PETITION FOR SPECIAL RELIEF" that was prepared by the law
firm of Dow, Lohnes & Albertson for Triax and that is requesting a waiver of the Commission's
small system rules, and the facts contained therein are true and correct to the best of my lmowledge,
information and belief
T declare under penalty of perjury under the laws of the United States of America that the
foregoing is true and correct.
Executed on December - ,1995.
P
Daniel P. Callahan
Director of Business Administration
Triax Communications Corporation
9
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Exhibit E
LAKE MINNETONKA SUBSCRIBERS & PLANT DATA
Date Basic Miles of Cable Subs Per Mile
Subscribers Plant
June 5, 1995 14,967 510 29
(Release Date of Small System Order -
5/31/95 Information Used)
August 21, 1995 15,047 515 29
(Effective Date of Small System
Order - 8/31/95 Information Used)
December 7, 1995 15,467 531 29
(Current Date - 11/30/95
Information Used)
I
CERTIFICATE OF SERVICE
I, Rayya K. Khalaf, of Dow, Lohnes, and Albertson, hereby certify that a copy of the
foregoing Petition For Special Relief was sent via United States Postal Service, postage prepaid, this
7th day of December, to the following:
James Daniels, Administrator
Lake Minnetonka Cable Communications Commission
540 Second Street
P. O. Box 473
Excelsior, MN 55331 -0473
Town of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Town of Loretto
City Hall
Loretto, MN 55357
Town of Maple Plain
1620 Maple Avenue
Maple Plain, MN 55359
Town of Mound
5341 Maywood Road
Mound, MN 55364
Town of Waconia
109 South Elm
Waconia, MN 55387
Town of Wayzata
City Hall
Wayzata, MN 55391
Meredith Jones, Esquire
Chief, Cable Services Bureau
Federal Communications Commission
2033 M Street, N.W., Room 801E
Washington, D.C. 20554
Thomas C. Power, Esquire
Cable Services Bureau
Federal Communications Commission
2033 M Street, N.W., Room 406C
Washington, D.C. 20554
Rayy a K. Khalaf
i
1