LTC 245-2004 Atlantic Broadband - City of Miami Beach Cable Provider
CITY OF MIAMI BEACH
Office of the City Manager
Letter to Commission No. 245-2004
m
From:
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez \. ".' W"':7..."L-/"
City Manager " \ \ J
Atlantic BroadbUd - City of Miami Beach Cable Provider
Date: September 15, 2004
To:
Subject:
Attached for your perusal is a letter from Mr. Kevin Maguire, Vice President and General Manager,
Atlantic Broadband, announcing their new offering of Digital Video Recording (DVR) service.
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JMG\REP
c: Robert Parcher
Tim Hemstreet
Kathie Brooks
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F:ICLERICLERIFORMSlAtlantic Boardband3 DVR.ltc.doc
Kevin Maguire
Vice President and General
Manager
Atlantic Broadband
1681 Kennedy Causeway
North Bay Village, FL 33141
(305) 861-8069, Extension 3100
VIA OVERNIGHT MAIL
Mr. Robert Parcher
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
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September 10, 2004
Re: At/antic Broadband (Miami), LLC
New Equipment (DVR Converters) Form /205
Dear Mr. Parcher:
Atlantic Broadband is delighted to inform you that. effective November 15, 2004, we will begin
offering Digital Video Recording (DVR) service to our customers in your community. With the
DVR, customers can record up to 40 hours of analog and digital programming, or 20 hours of
high definition programming, and replay the recorded programming whenever they choose.
We believe that there will be significant customer demand for and subscription to this service,
which has been received with enthusiasm by consumers thus far. I have enclosed a recent
article from the Boston Globe that you might find informative in this regard.
DVR service customers will require a DVR converter which will replace the current digital
converter. Accordingly, Atlantic Broadband has prepared the enclosed New Equipment Form
1205. This form establishes a Maximum Permitted Rate (MPR) of $14.16 for the DVR
converter, well above our planned $6.95 equipment charge.
Although the DVR service itself is unregulated, the FCC permits regulation of rates for
subscriber equipment used to receive the basic service tier even if the same equipment also is
used to receive unregulated services. 47 C.F.R. ~ 76.923. Under the regulations, a cable
operator may file at any time to establish the MPR for a new type of customer equipment. 47
C.F.R. ~ 76.923(0). The proposed rate automatically becomes effective 60 days after the date
of the filing, unless the Local Franchising Authority ("LFA"), upon review and consideration,
issues an order rejecting that rate. 47 C.F.R. ~ 76.923(n) (4).
Please do not hesitate to contact me should you have any questions about the enclosed New
Equipment Form 1205 or our forthcoming DVR service.
,
Very truly yours,
I1WtM 11~
Kevin Maguire
Vice President and General Manager
IhtIloJton filbc
COMCAST TO MARKET NEW VIDEO RECORDER
Author(s): Peter J. Howe, Globe Staff Date: August 29,2004 Page: A1 Section:
Metro/Region
Starting tomorrow, Comcast Corp, will begin marketing an enhanced cable box to New Englanders that will
accelerate a revolution that is changing television-watching habits, and the television industry itself. The
Motorola box, which includes a TiVo-style digital video recorder, will allow millions of subscribers to watch
shows on their own schedule and skip through the advertisements.
Although the technology has been available for a few years, most notably from industry leader TiVo, the
adoption of the digital video recording by the region's dominant cable provider signals that this disruptive
technology is about to go mainstream. The Comcast digital video recorder, built around a large hard drive, will
be able to store 50 hours of relilular programming or 10 hours of high-definition format shows, while also letting
people pause and rewind shows as they are broadcast live. Comcast will charge $9.95 a month for the
system with no upfront installation charge, a steep discount from TiVo, which charges at least $99 for a stand-
alone recorder plus $12.95 for monthly service.
About 5 percent of US households now own digital video recording systems, a figure that is expected to rise to
22 percent by 2008, according to The Yankee Group, a Boston market research firm. Even though the
numbers are small, industry executives expect growing DVR usage to roil the $58 billion US television
advertising market, as increasing numbers of consumers, particularly the most affluent who are most likely to
rent the devices, get the power to program their own television viewing. and ignore the traditional 30-second
television spot.
Advertisers' quest to "TiVo-proof' their marketing campaigns will also lead to changes that will ripple across
the television industry, specialists say. Television viewers will probably encounter more promotional messages
embedded in television programming, like A T& T Wireless Services Inc. cellphone voting in "American Idol"
and the use of Ford Motor Co. vehicles being written into the plots of Fox's thriller show "24."
Roberta Haber, senior vice president of media at Hill, Holliday, the Boston advertising firm, said it's impossible
to imagine that DVRs will lead to every viewer boycotting every ad anytime soon. "Good 30-second spots" will
still catch the eyes of people fast-forwarding through a show. "The sky may be changing color, but the sky's
not falling," Haber said.
The recorders are also likely to shake up US social and lifestyle patterns, as the "S o'clock news" turns into
something more people can watch whenever they want to, and the concept of prime-time "appointment
television," in which viewers build their evenings around favorite shows, wanes, The technology has also
spawned a new phrase, "linear programming," to distinguish conventional live television from "time-shifted"
viewing of shows with the help of technology.
Although the industry icon, TiVo, was launched five years ago, it has attracted only 1.6 million subscribers,
and more than SO percent of those have come through a joint marketing deal with satellite television provider
DirecTV Group Inc. Besides requiring a separate box in addition to the cable or satellite box, TiVo devices
have to be plugged in to a phone jack to get updated programming schedules.
"It's the integration into cable and satellite that will really drive this," said Yankee Group analyst Adi Kishore.
Comcast has 2.2 million subscribers in 343 New England cities and towns, including more than 210 Bay State
communities.
RCN Corp., which provides cable television in parts of Boston and 15 suburbs, began selling DVR boxes last
month, and Echostar Communications Corp.'s Dish Network also sells several models. But RCN and Echostar
both have far fewer customers than Comeast in New England.
Comeast's DVR gambit comes barely six months after it finished deploying its own "video on demand"
service, which lets subscribers use their TV remote controls to choose among 1,800 hours of movies, sports
contests, and TV shows. The plan includes WCVB- TV (Ch. 5)'s flagship 6 p.m. newscast with Natalie
Jacobson, which many nights draws 20,000 or more households, according to station officials.
Comeast senior vice president Kevin Casey said that in June, New England subscribers "streamed" 10 million
on-demand shows. "In combination with on-demand, the DVR really helps give you a new level of flexibility
and value to enjoy TV on your own terms," Casey said.
As soon as next April, a year ahead of its initial schedule, Nielsen Media Research plans to begin counting
how many US households are using DVRs to watch broadcast shows at different times. Nielsen has yet to
commit, however, to measuring which ads get skipped.
Veronis Suhler Stevenson, a New York media investment bank, predicts traditional big-three network
television advertising spending will continue to grow in each of the next four years, up 21.3 percent to $20.7
billion, but the growth will be well below the 48.7 percent projected increase by 2008 in ad spending on cable,
whose multiple specialized channels allow for more precise demographic targeting during the years when
DVR penetration is growing.
A proliferation of DVRs may also change advertising strategies at smaller companies like car dealers that have
traditionally advertised heavily in local TV markets. Although expensive product-placement campaigns are out
of reach, local advertisers uncertain about the ability of television ads to reach a commercial-skipping
audience may decide to move their marketing to other media. Smart USA, for example, generated buzz for its
planned US introduction of its tiny European cars by becoming the official car of this year's Boston Marathon.
A local car dealer may decide to shift its messages to drivers stuck in traffic, via billboards, or to tightly focused
online ads keyed to search words.
"A giant like Procter & Gamble can just buy marketshare," said Marc Gallucci, president of Boston marketing
and branded-communications firm, Fort Franklin. "Smaller companies have to be more creative by necessity."
Even as their first digital recorder comes to market this week in New England, Casey said, Comeast envisions
several upgrades. By year's end, the company hopes to offer a unit that holds 75 hours of regular
programming and 15 of HDTV. It will also feature a dual tuner that allows viewers to watch and record a show
on one channel while they record a second show from another channel.
Comeast is also overhauling its on-screen program guide to give subscribers a one-stop venue to scroll
through lists of live content, on-demand content, and shows they have recorded with the DVR.
Both the Motorola 6208 cable box going on sale this week, and future versions, will work only with digital cable
subscription packages, which cost at least $10.45 a month more than standard analog cable. The units also
bring in the 14 high definition format channels delivered over the Comeaat cable system locally, which are
available for an extra $2.05 on any plan.
Peter J. Howe can be reached at howe@globe.com.
SIDEBAR:
DIGITAL VIDEO RECORDER HOUSEHOLDS-PLEASE REFER TO MICROFILM FOR CHART DATA.
FORM 1205
DETERMININ"G REGULATED EQUIPMENT AND INSTALLATION COSTS
"EQUIPMENT FORM"
Community Unit Identifier (CUID) of cable system l:ateofForrn Submission
FL0406 09/10/04
Name of Cable Operator
Atlantic BrOldball.d Finance, LLC
Mailing Address of Cable Operator
One Battervmarch Park, Suite 405
City I:tate 1~IPcode
Quincy MA 02169
Name and Title of person completing this form:
Bartlett Leber, Vice President and Lee:al Counsel
Telephone number l:axNumber
617-786.88ooelt.1I2 617.786-8803
Name of Local Franchising Authority
Citv o{Miami Beach
Mailing Address of Local Franchising Authority
1700 Convention Center Drive
City I:ure I~IP Code
Miami neach FL 33139
I. This form is beiDg filed: (Enter an "I" in the appropriate bOIl
Din conjunction with FCC Form 1200, FCC Form 1220, or FCC Form 122S.
Attach the completed FCC Form 1200, FCC Fenn 1220, or FCC Form 1225 to the fronl of this form
OR
Dm order to fulfill FCCrnles requiring an annual ftling of this form This form is a "New Equipment Form" being filed only for DVR Converters.
Enter the date on whicb you last ftledthis form I 01/31/03 I(mm/ddlyy)
Note: This sbould be the date on which the rates last justified, by using either FCC Form 393 or the prior ftling of this form, were in effect
2. Enler tbe date on which you dOled your books for the filcal year reflected in this form:
Note: This will indicate the end of the 12.month fiscal year for which you are filing this form.
I Not Applicable I(mm/dd!yy)
New equipment requires use of estimated dolo.
3. Indicatetbe corporate StltUS ofyonr Clble sYltem IEnter In ":l[" in the correct bOll
~C.CO"O'''i,"
SnbchapterScorporation
Partnership
SoleProprietorsbip
X Other [PleaseeJ:plain below)
Limited Liability Company
Federal Communica1ions Commission
Washington, D.C. 20554
SCHEDULE A: CAPITAL COSTS OF SERVICE INSTALLATION AND MAINTENANCE OF rflUlPMJ:NT AND PLANT
Mllltnl..ce
A Eauipmen11Uld P\lUlt Vellleles Too" Fleilltln
. Gross Book Vllue
C Accumulated De"reciation
D Deferred Taxes
E Net Book Vllue rB-(C+D)l
F Rate ofRetum
G Calculation oI'GrOJls."n Rate
GI Federallneome Tax Rate
Gl Stlte Income Tax Rate
OJ Net Total Income Tax Rate rrGI+<:i2wGI x G211
G. Adiustmen110 Reflect Interest Deductibillt\'
G,. Actuallntercst Amounl
G4b Total Nct ASlets
G" Base Return on Investment Amount fG4b x FI
G4d Interest Deductibilitv Factor rG4a104cl
Gl Effective Tax Rate r03 xll_G4d'l rc-C'.r skip to 071
G6 AdlWltments for Noo.c Co......rations
Go. Sue Retum on Investment Amount r04<:l
G6b Distributions
Go. Contributions (may not exceed G6b)
G6d Returns Subiect to Income Tax I06a-G6b+G6cl
Go. Returns Percentlllfe Subiect to Income Tax r06dlG6a1
G7 Oml-Un Rate rc..coms:IHI-G5\ Other:II()..(QS x G6enl
H Grosllld-Un Rate ofRctum IF x 071
1 Return on Investment Grossed-Un for TaxeslE x HI
J Current Provision for Dcorccialion
K AnnUlI Capital Costs (I+J)
L GRAND TOTAL (..I'll 01 Lllc K eDtria)
. . >:->OJ189
$267,639,028
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Approved by: OMB 3060-0703
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Note: The amounts shown above are per the most recent Form 1205 filing made for these systems by Charter Communications on 1/31/03.
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SCHEDULE B: ANNUAL OPERATING EXPENSES FOR SERVICE INSTALLATION AND MAINTENANCE OF EOUIPMENT
Salaria I I I Other I. I OIhcr2.
& Benefits So lies Utilities OIherTaxes IS";',;;;'bolow) IS"';';';'bolow'
A Annual Op. Expenses ror Svc. Install. and Mainl. of Equip. I I I I
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GRAND TOTAL (Ium 01 LItle A eltrlelJ ...
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Specify: Other I.
Specify: Other 2.
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Exce14.0 for WindoWl
FCC Fonn 1205
June 1996
Federal Communications Commission
Washington, D.C. 20554
Approved by: OMB 3060-0703
SCHEDULE C: CAPITAL COSTS OF LEASED CUSTOMER EnUlPMENT New DVR Converters
A IEauiDment Remote I Remote 2 Remote 3 Converter 1 Convener 2 Convener 3 Other Eauio.
B Total MaintenancelService Hours (Attach Exnlanationl 1.46
C Total N of Units In Service I.
0 Gross Book Value $515.17
E Accumulated Denreciation $51.52
F Deferred Taxel $0.00
G Net Book Value ro..rE+fll ...,p.1l(> II 1:- :SJi.ilii' .........;...$Q.QO: ::j;i,~.j;;: I:::~ :ixi
Grosaed-Un Rate of Return fFIOIIl Sched. A, Line Hl ':':::::;;;;;;;0 >\ ",)'?'" ":['H::::':':::::::':' u:::',:,:,:,,: .::::
H
I Return on Investmcnt Grossed-Un fur Tue. fG x Hl ::16.<;;': :';'$il.OO' :-:- >$0:00: >>$0:00 :$0.00- :.:.:.:.:-St1ii3: <SO:OO'
J Current Provision for Dcoret::lation $51.52
K Annual Capital Costs (I + J] ';';'::$Q.Qe: ::::jp.pq' :~:iI!i: ';jq~: ::iJi.W: ....:...:::: :S}l~..i: ::~Ii.oQ:
L GRAND TOTAL (..m oflJ.. K eDtria) ::::: A,ili.;':
80s 3.
Note: See attached supporting workpaper for amounts shown above.
SCHEDULE D: AVERAGE HOURS PER INSTALLATION
A. Averaae Hours ocr Unwired Home Installation 'attach an ex"lanation'
B. Averaae Hours ocr Pre-Wired Home Installatioo 'attach an .....Ianatlon\
C. Averllll:C Hours ocr Additional C~lion Installation at Time of Initial Installation {attach an explanation\
D. Averuc Hours ocr Additional Connection Installation D......uirin.. ~arate Installation (attach an eXDlanatlon\
E. Other hlltaJlation thY Item Tv....\:
Item I. (S'-"ifV:\
Ave....... Hours""'r InstallaCion (attach an ex lanatlonl I
Item2.fSnecif'v:)
Averue Houl'I ller Installation (attach an eK~lanation\ I
ltem3.fSnecif'v:l
Averue Hours I'Ier Installation (attach an ex~lanatlon\ I
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Excel 4.0 for Windows
FCC Form 1205
June 1996
Federal Communications Commission Approved by: OMB ]060-0703
WashinglOn.D.C.20554
WORKSHEET FOR CALCULATING PERMI1TED EQUIPMENT AND INSTALLATION CHARGES
STEP A. Ho.riv Slrvlee Ch.......
L Total CRni1a1 Costs of Inllallallon and Maintenance [Schedule A. Box I :::<<s;i1~;l;~~~:
2. Total Annual n-ratin" E"-nses for lf15tallation and Mainle/WlCe Schedule B, Box 21 .. :':.)81.03b,109:'
3. Total (".anital Costs and n-ratin.. Ex_nses for Installation and Maintenance rLine I + Line 21. ...... :S46S;606.9if'
.. Customer Enuinment and Installation Poreentaae (attach an ey.nlanation~. 0,3963
,. Annual Customer F.nuinment Mainlenance and Installalion Costa. Excludinlf COIlS of Leased F.nulnmentfLine 3 x Une 41 .. >~!IliI~l<l.OI~:
6. ToIal Labor Hours for Maintenance and Installation ofCUSlOmCr Fnuinment and Services (attach exolanation) 6,886,424
7. Houri... Service C........ {HSC~ (Lino 5ILine 6) .. ......:5)6.1...
r tbe most recent Form 1205 fiUn made for tbese systems by Cbarter Communications on 1/31/03.
METHOD OF BILLING FOR INSTALLATIONS (p..ee.n "s" la the appropriate bo:r.)
Installations billed by the hour based on Ihe HSC calculated in Line 7.
Installatlonsbil1eduastandardc
STEP 8.lulllla&. Cb'l'Ie
8. Uniform HSC for all installations (From Step A. line 7)
OR
9. Ave
...........
............
.........
d. Additional Connection Installation Re uirln Se te Installation
dl.HSC Line7
d2. Ava. Hours per Additional Conneclloa Installation Req. Sop. Install. {Schedule D. Line OJ
d3. ClwJe per Additional Conneclion Installation Roquirina Separate Installation [dl x d2}
ified In Schedule D. Line E :
a. Unwired Home Installation
al.HSC Une7
12, Averaae Houn per Unwired Home Installation (Schedule D. Line A)
83. Chqa pcr Unwired Horne Installation (al x a2J
b. Pro-wired Home Installation
bl.HSC L1ne7
b2. Averaae Houn per Prc-wired Home Inllallatlon (Schedule O. Une B)
b3. Charae per Pre-wired Home Installation [hi x b2}
e. Addilional Connection Installation II Time oflnitiallnslallation
cl.HSC Line7
1:2. Average Houn per Adclilional Connection Installadon at Time of Ini!. Install. [Schedule D, Line C]
c3. Charge per Additional Connection Installation at Time of Initial Installation [cl x c2l
04. HSC Une 7
e~. Averaae Houn per Installation ofltem 2 [Schedule 0, Une E, Item 2}
e6. ClwJe per Installation of Item 2 [04 x e~l
o7.HSC Line?
e8. Average Houn per Installation of Item 3 (Schedule D. Uno E, Item 3]
e9. Charge per Inslallat:lon of Item 3 [e7 x elJ
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Excel 4.0 for WindoWl
FCC Fonn 120~
June 1996
Federal Communicalions Commission
Washington. D.C. 20SS4
STEP (~.~:~':::~C:~:dr~e::::'~krllne..tlv dlfferell tvne\ . b ,
Remote 1 Remote 2 Remote]
10. Total MaintenancelService Hours rCo"';-~~dlnll column from Schedule C, Line 01 ............0, :<<<<<0.1:':' >0'
11. HSC fLine 71 .:.: '~26:194(' :':$16"m:t::.: :':':':S2p.i'94S:
12. Total MainlenancelService COlI fLine 10 x Line III :';0:60' :slIm >>$0:.00:
13. Annual Canital Costs CorresDOOdi~nlumn from Schedule C. Line KI >00:;p >>>:':slI.illi' :.sn;;o:
14. Total Cost of Remote rUne 12+ Line 1]1 <.>>:5.:60: "':'$(I.~ )().DQ.
IS. Number of Units in Service rCorres........dinn column from Schedule C, Line C1 ':':':':':':':'0; .......0. <<<<<<<.>..
16. UnilCost [Line 14/Une IS) ::::::::::iQ;qq: <:iP.W ......<.:.~.QO:
17. Rate per Month [Line 161(12)) :':';0:60' <slim ....<.>lti1io:
STEP ~c.~:- ~::::- (~;::~::.:'':.tlv dltrereallVpel , b ,
Converter I Convcrter2 Con\'erlerl
I'. Total MainlenanceJService Houn rCorresnnndino co!umn from Schedule C. Line 01 :~, .0. >>>>>1'.06
". HSCrUne11 :- > >Si6:'94&' :si6:794t :':':':'$i6.i.9:
20. Total MainlenanceJServlce Cost Line IIx 191 :-:'::.'.:: < <'00:00' >:-:lil.q.: :::Vii.':2:
21. AMual Canital Costs rCorresnnndin.. column from Schedule C. Line Kl <<<<.:. :<<SO:OO: <.:-:-:-$11.116: :-:- :-mO.,l.
22. Total Cost of Converter rUne 20+ Line 211 :':$0:00: :-:-:-SO.O<; :':':'Si6g..8t-
23. Number of Units In Service rCorrcsnnndin" column from Schedule C. Line Cl :<:-:::<::n, <:P. :':1;
24. UnitCosI [Line 22/Line 21) >>:-:-:':'50:60. >:Sll.oo :$)69;&7:
2l. Rite per Month [Une24/(12)} >:-:.:.:.:SilW: :->:.:.:<.IQ.QQ: <<(I~)~.
STEP E. C".rus tor Other....1Ied Ea.~t
26. Tocal Maintenance1Service Houn rCorres......din.. column from S<:hedule C, Line 81
21. HSC Line?l
21. Total Maintenance1ServlceCost ILine26xLlne27
29. Annual Caoital Coata rComs~ndin" column from Schedule C. Une K
la, TocaICostof.,:..uj........nt rUne 28+Line 291
1 I. Number of Units in Service rColTesnnrwtino column from Schedule C. Line Cl
12, UnitCost [UnelOJLinell]
11. RaleperMonth [Line 121(12)]
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.. >:-116:Y1l4&'
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METHOD OF BILLING FOR CHANGING SERVICE TIERS OR EQUIPMENT Ipllee aD "s" I. tlae appropriate bosl
ua Nominal Charge (Enter the namlnll charae in Line 14)
u a Unifonn Hourly Service Charge
uan A\'el'8lc Ch e (Enter the A\'Crage Houn forC in Service Tien in Une 16b,)
lS.
36.
PaaeS
Excel 4.0 for Windows
Appro\'cd by: OMO 1060-0701
FCC Form 1205
June 1996
Federal Communications Commission
Washington, D,C. 20554
WORKSHEET FOR CALCULATING TOTALEOUlPMENT AND INSTALLATION COSTS
I. Total C....ital Costs oflnatallation and Maintenance fSchedule A, BOlt 11
2. Tolal Annual OMratinll' Eltnenses for Installation and Maintenanc;rSchedule B. Box 21
). Total Annual Canital Costs aflnstallation and Maintenanc;[Line 1 + Line 21
4. Customer F-<luinment and Installallon PercentAlrc attac~lOati~~\.
5. Annual Customer Eouinment Maintenance and Installation Costs, EIlCJudinll: Costs ofLcased Eauinment
rLine) xUnc4
6. Total Canital Costs of Leased Customer F-<luinmen1 rSchedule C, Box 31 .
7. Annual Customer F.l1uinmcntand Installation COS1J rLine S + Line61-
8, PcreentalU! Allocation 10 Franchise Area see instruction-;\
9. Allocated Annual Eauloment and Installation Colt fLinc 7 It Line I'
10. Monthlv Eauioment and Installation Colt rUne 91 (12"-
II. Number of Basic Subscriben in Franc:hilll
12. Monthlv Eauimncntand Installation COlt --- Subscriber Line 101 Line 111
I). Inflation Adiulhnent FactOf rSee Instructions1
14. Adiusted Monthly Eouillment and Installation CoIt....r Subscriber rUne 12 x Line 13
Pille 6
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FCC Form 1205
June 1996
federal Communications Commission
Washington, D.C. 20554
Approved by: OMB 3060-0703
SUMMARY SCHEDULE
C.rrenlEQulpmeDland IDllall,&. Ratu
IPermittCld
tAclual
1.
Cham:s for Cable Service Installations
a. HourlvRalerSlepA,Line71
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::::1
b. A vel'llll:e Installalion CharlreS:
I. hwtallalion of Un wired Homes rSlen B, Line 9&31
2.lnstallatioo o(Prewired Hornes ISten B, Line 9b31
3.lnllallation o( Additional Connections at Time oflniliallnstallation ISlen B, Line 9c31
4. Installation o( Additional Connections ReQuirin... S......rate [nsIaIlISl"'" B, Line 9d)1
5. Other Installation. (sDCciM IStCD B, Lines ge3, ge6, ge91
.. ...
..... ......
.
b.
,.
2. Monthly Chlll'Ke for Leue o(Remote ControlslSlen C, Line 17, columns a-c1
Remote Control Type I:
Remote Control TvDe 2:
Remote Control Tvoe 3:
). Monthlv Charu for Lease o(Converter Box" rSteD D, Line 25, columns a-c1
Converter Box Tvoe I:
Converter Box TVDll 2:
Converter Box TVDll ]:
4. Monthly Charge (ot Lease o(Other FnuinmenllSten E, Line 3]1
Other EQuipment (Sped""
S. CIwu (otChanll.inR Tierslihny) ISteD f, Line 34, 35 or 36c1
..........:.:u:oo:
:.' ... ::::;0:00:
.....:::::~:6li:
.... :::>::>>~Oii:
. . : :-:->:SO:OO'
. . :->>>ri~18:
T: . . . >:;0:00:1
T' .. "'::::1
LABOR COST AND POLICY CHANGES
Indicll1e)'OW' answer to the (ollowinathree questions by pJacing an ~x. in the appropriate box
I. Have you included the labor 00311 associaled wilh lu~riber cable drops in your cbatget (or initial installalion?
DYES
[K]NO
2. Have you capitalized the laborcosll llSSOCiated wllh subsc:riber cable drops?
[]]YES
DNO
3, I(you have filed this (orm before, have you chanpd any policy, e.g., cost llCtountinl or cost allocation lhat caLISCI an increase in the COltS
included in the computation of equipment and inslallalions charges?
r:=JVES (You mustanach a full explanation)
[K]NO
Note: This form is a "New Equipment Form" being filed only for DVR C
Atla.tlc 8l'oldba.d F1...e.. LLC
0,..
CERTIFICATION STATEMENT
WILLfUL fALSE STATEMENTS MADE ON THIS fORM ARE PUNISHABLE BY FINE AND/OR 1M
(U.S. CODE TITLE 18, SECTION 1001), AND/OR FORFEITURE (U.S, CODE. TITLE 47, SECTION
I terti fY Ihlt the statements made in thil (orm are true and correct 10 the besl of my knowledae and
Name oflhe Cable Operator Signatv
Title
09/10104
Vice PresldeDlaad Ge.enl Co....1
Pale 7
Ellcel 4.0 (or Windows
FCC form 1205
June 1996
Atlantic Broadband Finance, LLC
FCC Form 1205 for "New Equipment" (DVR Converters)
Schedule C - Capital Costs of Leased Customer Equipment
Supporting Workpaper Showing Estimated Data as of August 2004
Estimated Cost and DeDreciation:
Estimated Blended Estimated Annual
Capital Mix of Gross Useful Depreciation Accumulated
New EauiDment lDVR Converters) Cost (1) Units (1) Book Value Life (2) EXDense (3) DeDreciation
Standard Definition - Vendor 1 $509 90.00% $458.10 5 Years
High Definition - Vendor 1 $585 6.67% 39.02 5 Years
High Definition - Vendor 2 $542 3.33% 18.05 5 Years
Totals 100.00% $515.17 $51.52 $51.52
(1) Based on actual orders placed and anticipated mix of DVR converter deployments for 2004.
(2) Estimated useful life is approximately 4 to 4.5 years. However, five years was used to be conservative.
(3) Assumes half year convention for first year of depreciation. Assumes this form should reflect first year amounts.
Estimated Annual Maintenance Cost: Der DVR Converter:
Notes
Estimated
Total Maint.
Cost Over
Useful Life
Estimated
Useful Life
Average
Annual
Maint. Cost
Repair of failed box
Reconditioning of box for redeployment
Truck rolls for box failure and reconditioning
Average cost per truck roll
Cost of truck rolls
Totals
(1)
(2)
(3)
$100
20
1.25
$60
75
$195
5
$39
Hourly Service Charge (HSC) from most recent Form 1205
Implied annual maintenance/service hours used in "New Equipment" Form 1205
$26.79
1.46
(1) Mean Time Before Failure equals approximately one half of useful life. Assumed one repair during useful life.
Based on experience with other boxes, the cost of repairing a failed DVR converter is estimated at $100.
(2) Before returned boxes can be redeployed, they must be reconditioned, which includes replacing certain
components and cleaning, etc. Based on experience with other boxes, these costs are estimated at $20.
Given average time of deployment, an average box will be reconditioned once during its useful life.
(3) Assumed that 75% of failed boxes and 50% of reconditioned boxes will require a truck roll, respectively.
Thus, since each box is estimated to fail once and be reconditioned once during its useful life, then
the average estimated number of truck rolls over the useful life of an average box is 1.25.