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

FEDERAL COMMUNICATIONS COMMISSION

445 12TH STREET, SW

WASHINGTON, D.C. 20554 **DA 01-1577**

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

**CABLE SERVICES BUREAU ACTION July 3, 2001**

**FIRST QUARTER 2001 INFLATION ADJUSTMENT 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 figures released by the Commission. The First Quarter 2001
Inflation Factor for operators using FCC Form 1240 is 3.23%.

The adjustment factor of 3.23% is a measure of the annualized change in
prices occurring over the period from January 1, 2001 to March 31, 2001.
The factor is based on the changes in the quarterly Gross National
Product Price Index (GNP-PI) published by the Bureau of Economic
Analysis (BEA) of the United States Department of Commerce. The indexes
used were the Gross National Product: Chain-type price indexes for the
fourth quarter of 2000 and the first quarter of 2001. These indexes were
obtained from Table 5 of the BEA news release dated June 29, 2001 (BEA
01-20).

The inflation adjustment factor is calculated by taking the GNP-PI from
the first quarter of 2001 (108.59) and dividing by the GNP-PI for the
fourth quarter of 2000 (107.73). 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 first quarter of 2001 should enter the
inflation factor on the appropriate lines of Worksheet 1 of FCC Form
1240 as \"0.0323.\" 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 \"1.0323.\"

To date, the Commission has released twenty-three 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%

1999 Third Jul.. 1, 1999 -- Sep.. 30, 1999 1.04%

#### 1999 Fourth Oct.. 1, 1999 - Dec. 31, 1999 1.96%

2000 First Jan. 1, 2000 - Mar. 31, 2000 3.00%

2000 Second Apr. 1, 2000 - Jun. 30, 2000 2.40%

2000 Third Jul. 1, 2000 -- Sep. 30, 2000 1.62%

#### 2000 Fourth Oct. 1, 2000 -- Dec. 31, 2000 1.99%

2001 First Jan. 1, 2001 -- Mar. 31, 2001 3.23%

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: Nand Gupta at (202) 418-2279

TTY: (202) 418-7172

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