PUBLIC NOTICE![](media/image1.png){width="0.6159722222222223in"
height="0.6222222222222222in"}

FEDERAL COMMUNICATIONS COMMISSION

445 12TH STREET, S.W.

WASHINGTON, D.C. 20554 **DA 99-2072**

News media information 202/418-0500 Fax-On-Demand 202/418-2830 Internet:
http://www.fcc.gov ftp.fcc.gov

**CABLE SERVICES BUREAU ACTION October 4, 1999**

**INFLATION ADJUSTMENT FIGURES FOR CABLE OPERATORS**

**USING FCC FORMS 1210 AND 1240 NOW AVAILABLE**

Under Commission rules, cable operators may adjust the non-external cost
portion of their rates for inflation, 47C.F.R.§ 76.922(d)(2). For
operators filing FCC Form 1210, an annual adjustment may be made based
on inflation occurring from June 30 of the previous year to June 30 of
the year in which the inflation adjustment is made. For operators filing
FCC Form 1240, an adjustment may be made based on quarterly figures. All
adjustments are based on changes in the Gross National Product Price
Index (GNP-PI) as published by the Bureau of Economic Analysis (BEA) of
the United States Department of Commerce. The indexes used, the Gross
National Product: Chain-type price indexes, were obtained from Table 5
of the BEA news release dated September 30, 1999 (BEA 99-28).

**[FCC Form 1210]{.underline}**

The inflation factor for the 12 months ended June 30, 1999 is 1.0118.
Operators that wish to take this year\'s inflation adjustment using FCC
Form 1210 should enter the figure 1.0118 on Lines I5 and J5 of the form.
This year\'s inflation adjustment factor is calculated by taking the
GNP-PI from the second quarter of 1999 (113.84) and dividing by the
GNP-PI for the second quarter of 1998 (112.51). Operators may take this
year\'s inflation adjustment between October 1, 1999 and August 31,
2000.

**[FCC Form 1240]{.underline}**

The Second Quarter 1999 Inflation Factor for operators using FCC Form
1240 is 1.0135. The adjustment factor of 1.0135 is a measure of the
annualized change in prices occurring over the period from April 1, 1999
to June 30, 1999. The inflation adjustment factor is calculated by
taking the GNP-PI from the second quarter of 1999 (113.84) and dividing
by the GNP-PI for the first quarter of 1999 (113.46). The result of this
calculation is converted from a quarterly change measurement factor to
an annual change measurement factor by raising it to the fourth power.

Operators calculating the Inflation Factor for a True-Up Period which
includes some portion of the second quarter of 1999 should enter the
inflation factor on the appropriate lines of Worksheet 1 of FCC Form
1240 as \"0.0135.\" Operators using this factor for calculating the
Projected Period Inflation Segment of FCC Form 1240 should enter this
number on Line C3 (January, 1996 version), or Line C5 (July, 1996
version), as \"1.0135.\"

To date, the Commission has released sixteen quarterly inflation factors
for use with FCC Form 1240. The following table lists these factors:

**Year Quarter Dates Covered Inflation Factor**

1995 Third Jul. 1, 1995 - Sep. 30, 1995 2.22%

1995 Fourth Oct. 1, 1995 - Dec. 31, 1995 2.22%

1996 First Jan. 1, 1996 - Mar. 31, 1996 2.39%

1996 Second Apr. 1, 1996 - Jun. 30, 1996 2.22%

1996 Third Jul. 1, 1996 - Sep. 30, 1996 2.21%

1996 Fourth Oct. 1, 1996 - Dec. 31, 1996 1.83%

1997 First Jan. 1, 1997 - Mar. 31, 1997 2.70%

1997 Second Apr. 1, 1997 - Jun. 30, 1997 1.77%

1997 Third Jul. 1, 1997 - Sep. 30, 1997 1.43%

1997 Fourth Oct. 1, 1997 - Dec. 31, 1997 1.43%

1998 First Jan. 1, 1998 - Mar. 31, 1998 1.14%

1998 Second Apr. 1, 1998 - Jun. 30, 1998 0.82%

1998 Third Jul. 1, 1998 - Sep. 30, 1998 1.00%

1998 Fourth Oct. 1, 1998 - Dec. 31, 1998 0.78%

1999 First Jan. 1, 1999 - Mar. 31, 1999 1.60%

1999 Second Apr. 1, 1999 - Jun. 30, 1999 1.35%

The Commission releases a new quarterly inflation factor for operators
using FCC Form 1240 four times each year. The inflation factor for a
given quarter is usually released between three and four months after
the end of the quarter, depending on the schedule of the Department of
Commerce. The release of a new factor is posted on the Commission\'s
Internet site at: http://www.fcc.gov/Bureaus/Cable/WWW/csb.html.

Media Contact: Michelle Russo at (202) 418-2358

Cable Services Bureau Contact: Patrick Boateng at (202) 418-2370

TTY: (202) 418-7172

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