THE PUBLIC MIND: GENERAL MANAGER OF TCI DISCUSSES RATES AND REGULATION

To the Editor:

Today some 60 million Americans receive a major share of their information, education and entertainment through cable television, including 13,000 right here in Cape Girardeau and Jackson. The variety of programs and specialized channels cable brings to the home continues to grow each year, this medium truly the "portal of the information age" and the average person's access to an expanding world. Cable is so ubiquitous, it is largely taken for granted.

Without doubt, cable has become a national resource or commodity that for many citizens living out of broadcast range is the primary medium linking them to a knowledge of current events and international affairs - as well as countless other topics of interest that impact their lives.

During 1992 global events like the Olympics, the Democratic and Republican Conventions, the Presidential debates, nationwide election coverage, the reunification of Germany and the restructuring of the former Soviet Union - to mention just a few - were brought directly into the home along with the latest movies and syndicated programs. And for special interests and tastes, cable's large channel capacity makes it comparable to a "visual shopping mall" in its ability to provide something for everyone.

While all of this is delivered to consumers at fractions of a penny per program, few people realize that the operational and administrative expenses associated with delivering this feature - rich viewer menu continues to go up - as do costs for other goods and services as all have to pay.

Even if TCI Cablevision of Missouri, Inc. added no new viewer offerings in a given year, the cost of transmitting the same package would go up as network program providers passed along their increases to local cable operators.

On May 1, 1993, TCI Cablevision of Missouri, Inc. will increase its rate for Expanded Basic to $11.11 per month. (Not including franchise fees.) The amount of the increase to the average cable bill is comparable to the increase in the cost of living for this region over the past year, plus increases in programming costs.

As you may know, on Oct. 5, 1992, Congress passed cable legislation which among other items, provides for local rate regulation. As of this date, the FCC has not fully implemented the rate regulation provisions of this legislation. While we do not know what criteria will be adopted by the FCC, the Cable Act did give the FCC a few guidelines. Our rate increase is consistent with these guidelines - it is reasonable in that it reflects our regional consumer price index and the increases in fees from our program suppliers.

Most of the provisions of the new law will take effect in the near future. Many standards must be set by the FCC. TCI Cablevision of Missouri, Inc. intends to abide by the provisions of the law; in fact, we are in compliance with several already.

As the local cable operator, I want to tell you that we are doing everything we can to hold the line on the costs we control. But even with the lower rate of inflation coming as a result of the two-year recession, we still face higher external costs which continue to impact our business. Please keep this in mind when our rate adjustments go into effect in May. They are necessary to cover our operating costs as well as cost increases from program suppliers.

Sincerely,

Roger Harms

General Manager of TCI