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Home My WebLink AboutSS3 - Cable Television & TelecommunicationsOctober 24, 2000 Study Session Item SS3 ^d�W )4 61 CITY OF NEWPORT BEACH MEMORANDUM TO: Mayor and Members of the Newport Beach City Council FROM: Dave Kiff, Deputy City Manager Robin Clauson, Assistant City Attorney DATE: October 24, 2000 RE: Study Session on Cable Television and Telecommunications Here are the Cable TV and Telecommunications issues that we believe need to be addressed by the City in the coming twelve to eighteen months. As you will see, we recommend that the Council form an ad hoc conunittee on Cable TV and Telecommunications to address the issues and accomplish the tasks that follow. • 1- MUNICIPAL CODE RELATING TO TELECOM IS OUTDATED ISSUE: We're not ready for the Year 2002. The City's municipal code chapters that relate to cable television and telecommunications require significant amendments before the City can enter into any effective franchise agreements or use permits with providers of cable television or wireless communication. BACKGR'D: Both the Comcast and Cox franchise agreements for cable television service to the residents of expire on January 27, 2002. The existing Agreements - circa 1966 - contain information and requirements that may have been superceded by Federal action on telecommunications (please see a summary of these aspects in Attacltntent A). Assistant City Attorney Robin Clauson has developed a draft telecommunications ordinance that can be updated to reflect the latest FCC regulations. We also have a copy of a more generic telecommunications ordinance developed by William Marticorena of Rutan and Tucker and used by many other cities. Part of the City's new telecommunications ordinance should address whether or not the City wants to assess an encroachment fee for the use of • city streets. Other cities are considering encroachment fees of from $1.80 to $3.65 per lineal foot. City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659 -1768 Cable TV/Telecom Study Session Agenda Item October 24, 2000 Page 2 TASKS: • Form Committee. Appoint an ad hoc Council Comrnittee on Cable • TV/ Telecommunications to address the issues outlined in the entirety of this memorandum. • Update or Create New Ordinances. Direct Council Committee to work with City staff to update the City's Cable Television Ordinance and to create a separate Telecommunications ordinance (addressing wireless services, street encroachment fees, city infrastructure use fees, and antenna siting). 2 - FRANCHISE RENEWAL PREPARATIONS ISSUE: The City's two major cable television franchise agreements with Cox Communications and Comcast /Adelphia will expire on January 27, 2002. What should the City be doing to prepare for the Agreements' expiration? BACKGR'D: As noted previously, the City's two franchise agreements (one with Cox Communications and one with Comcast) appear as codified ordinances per the City Charter. Both were developed in 1966 and later amended several times. Because neither reflects the regulatory environment in place today, the Agreements must be re- written upon renewal based on a new Cable Television ordinance yet to be adopted by the City Council. • As an important note to the Council and to Newport Beach residents, our colleagues in other cities tell us that it is "virtually impossible" to deny a franchise agreement to an existing provider who seeks a renewal unless the provider has seriously compromised service or has a demonstrated inability to provide the level of service expected by the community. Remember that the "plant" in the streets (and on telephone wires) - cable lines, amplifiers, node infrastructure, etcetera -- is the not the property of the City but the property of the existing cable company. That said, an important part of any franchise renewal is the preparation of a Community Needs Assessment. The Needs Assessment is an analysis - based on extensive public input - of the television, high -speed data, service standard, and cable - related telecommunications needs of a community. The City needs to begin planning and convening this Needs Assessment right away so that it is completed in time for franchise renewal talks. TASKS: • Update or Create New Ordinances. Direct Council Comrnittee to work with City staff to update the City's Cable Television Ordinance. • Community Needs Assessment. Direct ad hoc comrnittee to develop and conduct (with staff or expert assistance) a Community Needs • Assessment between now and June 2001. • Cable TV/Telecom Study Session Agenda Item October 24, 2000 Page 3 3 - COMCAST CUSTOMERS MAY BE UNAWARE OF PENDING "SWAP" ISSUE: Comcast will soon be leaving Southern California after "swapping" its local customer base with Adelphia Communications. Do we know what effect this swap will have on service? On rates? On the franchise? How should this information be communicated to Newport Beach residents? BACKGR'D: Depending upon the date at which the Federal Communications Conunission ( "FCC ") approves the customer transfer from Comcast to Adelphia, residents in about 2 /3rds of Newport Beach who today subscribe to Comcast will have a new cable TV provider - Adelphia Communications of Philadelphia, PA. See Attachment B for information about Adelphia taken from adelphia.com, the company's website. The City has retained William Marticorena of Rutan and Tucker to represent the City in this transfer. Mr. Marticorena also represents several other cities that will see Comcast swap its subscribers to Adelphia. TASKS: • Communication Plan. Inquire with Comcast /Adelphia as to Adelphia's plans to communicate the transfer of service from Comcast. • • Contents of Plan. Direct Comcast /Adelphia to provide critical information about pending transfer to subscribers in a timely manner, including local phone numbers and bill payment/ service office. 4 - SUBSCRIBERS UNAWARE OF CITY'S INABILITY TO CONTROL RATE HIKES ISSUE: Newport Beach cable customers have seen a series of significant cable rate hikes. Customers often think that the City has a "say" in the increases. What CAN the City do regarding rate increases? BACKGR'D: As cable customers are well aware, the rate of increase in cable bills has been higher in recent years than the rate of inflation. From 1998 to 1999, the FCC reported that cable rates went up by 6.9 %, resulting in an average cable bill (nationwide) of $30.53. The same FCC report said that rates in areas subject to "effective competition" went up by 5.8% and the average cable bill was $28.71 per month. Here is the approximate increase in cable bills for limited basic, cable prograznming services tier, and special services from Cox and Comcast in 1998, 1999, and the rates proposed for 2000: • Cable TV/Telecom Study Session Agenda Item October 24, 2000 Page 4 Newport Area Cable Rates -1998 -2000 The average increase for both Comcast and Cox during the two -year period was about 5.2% annually. This compares to a 3.4% change in the Consumer Price Index (All Urban Consumers, August 1999 to August 2000) and a 2.7% annualized change for the first eight months of 1999. Readers will note the non - existent or modest increase in prices on the Limited Basic Tier of channels (typically channels 2 -13). Local governments retain the ability to "regulate' this tier. Previous to March 1999, municipalities could file a "Form 328" to raise questions about rate hikes in the Cable Programming Services Tier ( "standard service' above). The City filed a Form 329 on Comcast's 1999 rate hike - the FCC responded later that the hike was appropriate. • With the CPST rate deregulation in March 1999, the City has no direct authority to review or regulate CPST rates. Complaints about these rate increases should be filed individually with the FCC (www.fcc.gov). TASK: • Public Information. Direct ad hoc Conunittee to explain City's regulatory ability (of lack thereof) through the Community Needs Assessment process. 5 - TELECOM HIGH TECH - WHAT SHOULD BE THE CITY'S POSTURE? ISSUE: Video, audio, and Internet communication technology is changing rapidly. What should the City's posture be regarding the Telecom industry and its interest in the Newport Beach customer base? BACKGR'D: More and more information services can be delivered through a cable line. Some information services are bypassing "hard" infrastructure entirely, using satellites and a series of antennas to transmit voice and data. These technologies and the companies that provide them include: • Overbuilders or Newbuilders. In a practice that was unheard of as recently as two years ago, new telecom companies (RCN and Wide Open West) now compete directly with more established cable TV is providers for a variety of cable services. Newbuilders enter into Comcast Cox 1998 1999 2000 1998 1999 2000 Limited Basic $11.57 $11.57 $11.57 $13.27 $13.36 $13.93 Standard Service $19.26 $21.16 $23.16 $16.13 $21.63 $23.06 Value Pak/Cox Plus $5.41 $5.41 $5.41 $3.99 Complete Basic $36.55 $38.45 $40.45 $33.39 $34.99 $36.99 The average increase for both Comcast and Cox during the two -year period was about 5.2% annually. This compares to a 3.4% change in the Consumer Price Index (All Urban Consumers, August 1999 to August 2000) and a 2.7% annualized change for the first eight months of 1999. Readers will note the non - existent or modest increase in prices on the Limited Basic Tier of channels (typically channels 2 -13). Local governments retain the ability to "regulate' this tier. Previous to March 1999, municipalities could file a "Form 328" to raise questions about rate hikes in the Cable Programming Services Tier ( "standard service' above). The City filed a Form 329 on Comcast's 1999 rate hike - the FCC responded later that the hike was appropriate. • With the CPST rate deregulation in March 1999, the City has no direct authority to review or regulate CPST rates. Complaints about these rate increases should be filed individually with the FCC (www.fcc.gov). TASK: • Public Information. Direct ad hoc Conunittee to explain City's regulatory ability (of lack thereof) through the Community Needs Assessment process. 5 - TELECOM HIGH TECH - WHAT SHOULD BE THE CITY'S POSTURE? ISSUE: Video, audio, and Internet communication technology is changing rapidly. What should the City's posture be regarding the Telecom industry and its interest in the Newport Beach customer base? BACKGR'D: More and more information services can be delivered through a cable line. Some information services are bypassing "hard" infrastructure entirely, using satellites and a series of antennas to transmit voice and data. These technologies and the companies that provide them include: • Overbuilders or Newbuilders. In a practice that was unheard of as recently as two years ago, new telecom companies (RCN and Wide Open West) now compete directly with more established cable TV is providers for a variety of cable services. Newbuilders enter into Cable TV/Telecom Study Session Agenda Item October 24, 2000 Page 5 40 franchise agreements with cities where there is an existing cable provider and compete directly with the provider for cable TV, telephone, Internet, and high -speed data services. Newbuilders require permits for street cuts just like existing cable companies. • Cable Providers and Telephony/High Speed Data. Cox Communications has been one of the more active proponents of providing local and long distance phone service over their existing cable.lines. Both Cox and Comcast /Adelphia provide high -speed data service to most areas in cooperation with Excite@Home. • Phone Companies and High -Speed Data. Digital Subscriber Line Service ( "DSL ") is a recently- offered technology that transmits Internet and other high -speed data over existing phone lines. PacBell is a major provider of DSL service. • Wireless Internet/Voice/Data. Verizon, Nextel, and others provide local and long- distance voice communications using satellites and /or extensive antenna -based transmission infrastructure. In several recent instances, companies which "site" antennas for the major voice communication players have asked to use City facilities for these antennas. The City has already negotiated an Agreement (circa 1998) with Metricom to provide Internet and data over a similar "over-the- air" system with antennas placed on city -owned street lights. The economic demographics of Newport Beach make us a prime target for the entire range of services provided by telecom companies. The Council may wish to adopt a formal Council Policy regarding City Staff s posture to the companies - to ensure that our residents get a full range of telecom services (and to increase the City's revenue), should we market ourselves and our facilities as sites for more telecom facilities? Or - because we cannot ban such facilities outright - should we take a less welcoming role in reviewing infrastructure applications? TASK: • New Council Policy. Direct the ad hoc Council Conunittee to develop a Council Policy relating to the manner in which the City reviews and approves requests for telecommunications infrastructure easements. Cable TV/Telecom Study Session Agenda Item October 24, 2000 Page 6 ATTACHMENT A • Excerpts from a memo to the Newport Beach City Council dated June 11, 1998 NOTE: changes front 061108 version denoted in Italics CABLE TELEVISION Several different laws, ordinances, and agreements dictate "what we do' with Cable TV. These include: • Three Federal acts relating to Cable TV and Communications (1984 Cable Act, 1992 Cable Act, and 1996 Telecommunications Act) • The Newport Beach Municipal Code (Chapter 5.44) and City Charter (Article XIII) • The City's Franchise Agreement with Comcast Cablevision • The City's Franchise Agreement with Cox Community Cablevision Here is a summary of each - skip to the end to see a side -by -side of what cable companies, the City, and the FCC can and cannot do: I -- FEDERAL COMMUNICATIONS COMMISSION (FCC) AUTHORITY * 1984 Cable Act. The Federal Communications Commission (FCC) established new policies over cable TV via the Cable Communications Policy Act of 1984. Among other things, the 1984 Act began to define the boundaries between federal, state, and local governments. The 1984 Act . requires cable companies to act under franchise agreements and prohibits local governments from offering exclusive franchise agreements. This Act also limited the cable franchise fee to 5% of the cable company's gross annual revenue. The 1984 Act also: • Allowed local agencies to require that cable companies set aside channels for public, educational, or governmental (PEG) use. • Established "leased commercial access" allowances so that parties other than the cable company could air video programming without cable company oversight. • Placed restrictions on telephone companies that wanted to provide television service. * 1992 Cable Act. In response to price hikes in the cable industry that far outpaced inflation, Congress passed the Cable Television Consumer Protection and Competition Act of 1992. The 1992 Act stated the FCC's hope that the market would begin to regulate cable TV activities while still protecting consumer interests. Under the 1992 Act, local governments could select a cable franchisee and regulate in any areas that the FCC did not pre -empt. Prior to 1992, local governments could regulate all rates - but with the 1992 Act in place, the FCC took over rate regulation of the cable programming tier (see below) and allowed cable companies to be completely exempt from rate regulation if they could show that the cable companies were subject to "effective competition" in a region'. In the 1992 Act, the FCC defines three tiers of cable services: ' Comcast recently asked the FCC to'exempt its Newport Beach operations from any rate regulation due to "effective competition" by Pacific Bell Video Services. On May 1, 1998, the FCC denied Comcast's request. On June 4, 1998, Comcast appealed the FCC's decision. Cable TVITelecom Study Session Agenda Item October 24, 2000 Page 7 • the basic service tier (lower channels originating in the region which must be carried by the cable company). Local governments may regulate rates associated with this tier when certified by the FCC to do so. • the cable programming service tier ( "CPST ") - this includes all non -basic channels provided by a cable company but not sold on a pay - per -view basis. Effective March 32, 2999, the FCC has declared this tier of service subject to "effective competition" and NO LONGER regulates rate changes to this tier. • the per channel or per - program tier - provided as single channels for which the cable company charges a separate rate. This tier is unregulated. Per the 1992 Act, local governments must apply for certification with the Commission if they want to regulate rates in the basic service tier. We can do so by submitting a "Form 328" to the FCC. The City has not asked the FCC to certify the City as a basic tier regulator. This is in part because cable companies rarely, if ever, increase their rates on the basic tier since the development of the 1992 Act - in recent years, cable companies have reduced and/ or maintained their basic tier rates while increasing their CPST rates. Another important aspect of the 1992 Act set customer service standards for cable companies - all of which must be enforced by local franchise authorities. Pursuant to the standards, cable companies must: Phone and Billing Services • Maintain a local phone line available 24 hours, seven days a week. • Not use voice mail during working hours - a real person must answer the phone. • • Place its bill payment office in a convenient location. The office must be open at least one night a week and/ or some weekend hours. • Answer all calls to the cable company office within 30 seconds of the time that a connection is made. Installations and Service Calls • Complete a standard installation within seven days of a service call. • Begin working on a service interruption call within 24 hours of notification. • Offer specific appointment times or four -hour blocks of time for all service calls. • Have installers call if they are running late to reschedule at the customer's convenience. Rate or Service Changes • Give 30 days advanced notice for all rate or service changes. • Respond to billing complaints within 30 days. * 1996 Telecom Act. Most recently, Congress amended the laws even further via the adoption of the Telecommunications Act of 1996. The 1996 Act was an attempt to accelerate private sector deployment of services to all residents by opening up all telecom markets to competition, including allowing cable companies to provide phone service and vice - versa. The 1996 Act provided that the CPST would be subject to FCC regulation until March 31, 1999. The Act also prohibited individuals from sending complaints directly to the FCC - instead, individuals must file complaints with the franchise authority (us) and we forward one or more complaints to the FCC for review via an FCC "Form 329." Before sending a complaint to the FCC, we must notify the cable company of the complaint and allow them 30 days to respond. We followed this process earlier this year in forwarding a rate complaint by a resident. E Cable TV/Telecom Study Session Agenda Item October 24, 2000 Page 8 The 1996 Act also: • Requires television manufacturers to equip their TVs with a V -Chip. • Requires broadcast and cable industry representative to develop voluntary rules that rate programs for sexual or violent content. • Requires cable companies to fully scramble audio and video channels not specifically subscribed by a household. • Allowed some telephone companies to provide video programming via open video systems (Pacific Bell Video Service [ "PBVS "] is an open video system that delivers both local programming and national channels via a small dish or antenna). The 1996 Act exempted these systems from city franchise requirements. • Limits local franchise authority fees to revenue derived from "cable services." II -- NEWPORT BEACH MUNICIPAL CODE (Chapter 5.44) AND CITY CHARTER (Article XIII) The City's municipal code section relating to Community Antenna Television (CATV) is found in Chapter 5 (Business Licenses and Regulations), subchapter 44. Much of the Chapter is likely to have been pre - empted by the 1992 and 1996 changes to federal law. The Chapter includes the following definitions and directives: `J • Defines "gross annual receipts" as any and all compensation resulting from the operation of a cable TV system in Newport Beach, but not the franchise fee imposed by the City. In other words, a cable company's calculation of the 5% franchise fee cannot include the line item on the bill that charges the franchise fee itself. REMAINS IN • EFFECT. This ' franchise fee on a franchise fee" - also known as 'fee-on-fee" was subject to court challenge since I wrote this memo. Today, ' fee -on fee" is legal. • Describes the process by which a cable company files a franchise application with the City (along with a $1,000 franchise application fee). MAY HAVE BEEN PRE- EMPTED. • Directs the City to award a franchise with a term between 10 and 25 years. To terminate a franchise prior to end -of -term, the City must find that a cable company has "violated a material term or condition" of its franchise OR that any part of Chapter 5.44 has become unenforceable and has materially changed the franchise OR the City must acquire the cable TV system. MAY HAVE BEEN PRE- EMPTED. • Allows the City to inspect the cable company's records at any time. MAY HAVE BEEN PRE- EMPTED. • Empowers the City Manager to settle any controversy arising between the cable company and the City or subscribers "in the best interests of the public." MAY HAVE BEEN PRE - EMPTED IN WHOLE OR IN PART. • Directs the City Council to set a franchise fee of not less than 3 % of the cable company's gross annual receipts (paid to the City quarterly). REMAINS IN EFFECT. • Describes the proper operation of the "Newport Beach Community Channel" which must be cablecast on the same channel number on all cable systems in the City. The channel number can be designated by mutual agreement between the franchisees. The Channel must include live broadcasts of all regular meetings of the City Council, at least one re- broadcast of the meetings, and up to 20 hours of community affairs • programs per month as designated by the City Manager. When the Channel is not broadcasting local origination material, the cable company can run advertising that Cable TV/Telecorn Study Session Agenda Item October 24, 2000 Page 9 • "promotes primarily persons maintaining an office within the city..." The cable company can collect a fee for ads broadcast on the Community Channel. REMAINS IN EFFECT, • Requires the cable company to keep a toll -free phone number in the City as well as a service and billing office within the main franchise area. Any subscriber complaint must be addressed within 24 hours via correcting the problem or scheduling a service call within 48 hours. MAY HAVE BEEN PRE- EMPTED. • Allows the City Council to review and approve all rates and charges for cable services "to the extent permitted by State or Federal statutes." MOST RATE REGULATION PRE- EMPTED. • Allows the City Council to determine which franchisee serves a newly annexed area, unless the area contains a completed or commenced cable TV system. In the latter case, the area must be served by the cable company owning the system. MAY HAVE BEEN PRE- EMPTED. Please note that the City Charter also has a section on franchises (Article X111). Article XIII requires the City Council to adopt franchises via ordinance and to hold a public hearing prior to granting a franchise. It limits all franchise terms to 25 years or less if a determinate term is stated. The Article allows indeterminate terms but specifies that the City has a right to end the franchise and possess the franchisee's property if the franchisee is out of compliance with the franchise agreement (Section 1302). III -- COMCAST CABLEVISION FRANCHISE AGREEMENT Comcast Franchise Agreement Information: • Agreement adopted December 1966 -15 -year term (to 1981). • Amended December 1970 - term reset again to 15 years (to 1986). • Amended April 1986 - term extended by five years (to 1991) • Amended October 1991 - term extended to January 27, 2002. Current Comcast Service Area Old Corona Del Mar Linda Isle Westcliff Cameo Shores/ Highlands Newport Shores Eastbluff Balboa Island West Newport The Bluffs Balboa Peninsula Newport Terrace Irvine Terrace Harbor Island Newport Heights Lido Isle Dover Shores What the Comcast Franchise Agreement Says: • Comcast has the non - exclusive right (meaning that another cable company could come in Comcast's area and attempt to provide cable TV service) to operate a cable TV system within the City of Newport Beach during the Franchise's term. Comcast's "primary franchise area" is described above. • Comcast cannot sell or repair TV sets, provide any repair beyond fixing its cable service, and cannot assist other companies in soliciting Comcast subscribers to buy a service that Comcast itself doesn't provide. • • On or before January 1994, Comcast has to provide a dedicated educational access channel and a dedicated fire department channel. Cable TV/I'etemm Study Session Agenda Item October 24, 2000 Page 10 • On or before January 1997, Comcast has to modify its cable system so that it can transmit 54 or more channels to its subscribers. IV -- COX COMMUNITY CABLEVISION FRANCHISE AGREEMENT Cox Franchise Agreement Information: • Agreement adopted December 1966 -15 -year term (to 1981). • Amended November 1981 - term extended for ten years (to 1991). • Amended October 1991 - term extended to January 27, 2002. Current Cox2 Service Area: Newport Center Jasmine Creek Big Canyon Bonita Canyon Harbor View Hills Harbor Ridge Spyglass Hill Belcourt Bonita Creek Newport Coast Newport Ridge What the Cox Franchise Agreement Says: • Cox has the non - exclusive right to operate a cable TV system within the City of Newport Beach during the Franchise's term. Cox' 'primary franchise area' is described above. • Cox cannot provide any repair beyond fixing its cable service, and cannot assist other companies in soliciting Cox subscribers to buy a service that Cox itself doesn't provide. • On or before January 1994, Cox has to provide a dedicated educational access channel and a dedicated fire department channel. • On or before January 1997, Cox has to modify its cable system so that it can transmit 54 or more channels to its subscribers. SUMMARY Here's a quick summary of what we can and cannot do given the FCC's jurisdiction, the City's Municipal Code and Charter, and the two franchise agreements: ComcasVCox City of Newport Beach FCC • Has right to continue service to Newport • Can forward cable programming services • May rescind an improper rate increase on Beach customers in franchise areas tier rate complaints to FCC for review via cable programming services tier through through January 27, 2002 unless Form 329. March 1999. negligent. • Can "regulate" rate increases on basic • May deem a cable company exempt from • Can propose any rate increase on pay- services tier if "certified" by FCC via any rate regulation due to presence of per -view tier without regulation. Form 328. effective competition. • Can propose any rate increase on cable • Can enforce service response standards programming services tier without in the 1992 Cable Act. regulation after March 1999. • Can require compliance with those • Most adhere to service response portions of Franchise Agreements and standards in the 1992 Cable Act. Municipal Code not pre - empted by • Can petition FCC for waiver of all rate Federal law. regulation if subject to "effective • Can adopt cable franchise agree -menu competition." Comcast recently (June 4, with terms from 10-25 years 1998) appealed the FCCs denial of its "effective competition" claim. 3 There are several areas of the City where the "primary franchise area" overlaps between Comcast and Cox. These areas include Newport Dunes, the Coast side of Bayside Drive, Promontory Point, the Hyatt Newporter, Harbor Cove, the Park Newport Apartments, Bayview Terrace and Court, and the John Wayne Airport Area. • • J i ATTACHMENT B From ADELPHIA.COM Adelphia: The Company Imagine working for a company that began with a vision and a few strings of cable that turned $300 into a: multi - billion dollar telecommunications leader; customer care company that satisfies the customer and supports you; technology innovator that demands your skills and creativity and rewards them; company that feels like family, but is big enough to outpace the "neighbors." Who is Adelphia? "Adelphia ", which is Greek for "brothers," began almost 50 years ago by the Rigas brothers, John and Gus. John Rigas, CEO, continues the tradition of loyalty, friendliness, trust, support, and open communication that the company was founded upon. Today, a new generation of brothers, John's sons - Michael, Timothy and James - manage Adelphia's financial and strategic operations. They are committed to sustaining the company's original values and spirit as the Adelphia family grows. What is Adelphia? Adelphia owns and operates one of the nation's largest broadband communication networks. We are a leader in: Cable entertainment, Digital cable, Local voice and long distance telephone services, Messaging, Enhanced data and high -speed Internet services. • Where is Adelphia? Adelphia maintains hundreds of remote locations throughout the United States providing personalized local service to our customers. Adelphia, Adelphia Media Services and Adelphia Business Solutions are all headquartered in Coudersport, a rural community in North Central Pennsylvania. The Organization Adelphia is comprised of a family of companies including: Adelphia Communications — Cable Entertainment, Digital Cable, High -Speed Internet Services, Paging Services, Long Distance, Security (alarms) Adelphia Media Services — local cable advertising, national spot cable advertising Adelphia Business Solutions — Local voice, long distance, enhanced data, high -speed Internet service, messaging, Sports Interests — Empire Sports Network, Buffalo Sabres, HSBC Arena (Buffalo, NY) International Interests — Supercable AKL International, a cable partnership in Brazil City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659 -1768