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Ltr.,/Dr., Eggert <br />July R, 1988 <br />Page Three <br />1-7-resented (Attachment C), Is a summary of the, blonds and their cost for communlitles, served by <br />NICTVAI Incidentially, thesis, costs fall very unevenly on subscribers, depending upon where thely, <br />0 <br />I ive. For example, costs for subscribers in Roseville are $1.85 pier subsicribler per year. These <br />-- 6 lubscribeirs, are siub • subscribers in Lauderdale, where bond costs are $22.,95 per, <br />zubscribleirl pler yeair. <br />The total cost for, the North Suburban blonds are $81,12; per year, $4.89 pier subscriber per year, <br />or $0-41 per sulbiscriber per month. <br />NCTV belleivies a more reasonable bonding level of $50,000 for the North Suburban servil <br />ice <br />al IN <br />territory Is, adequate. For comparison purposes,, the Ramsey/Wasihington, Cable Commission <br />requires a total bondin�g level of $501,000 for its 14,17'00 subscribers, while the Northwest Slu blurbs <br />i I O'bers. <br />of' Hennepin Co"ulnty requilres $,100,000 for its 41,,000 subscri <br />MMCME FEKS <br />In ad�ditiolni to this above costs, NCTV pays to, the Commission 5% of Its-grioss revenues ap- <br />franch"Isial feels. These feels now average $ 1.551 pier subscriber per monthll or $3108,1210 per, yiear. <br />The total cost of' alill of thele expenditures is: <br />Annual Total Dollars Per Sub Per Mix <br />Wdumok-411 <br />Nal <br />lit <br />Il GAN a A 10 :8 "TO-3 I I AIL gl <br />4% <br />KA % <br />if tell I 914JAAWIA:�Mlj <br />1 <br />Inefficiency mandated by regulation, needlessly places considerable pressure oin N�CTV's charges <br />to Its subscribers, while not Providing th�em (or anyone else), with any corresponding beinefits <br />di <br />Unless the requesteld cost reductions ca�n soon be achieved,, it is to be expected that these costs <br />0 i ke al I busi ness costs),, wil I I soon f 1 n d t he i r way, "I nto the m onth l�y fees whi ch N CTV m ust cha rg e <br />di 0 <br />its subscribers. It is obvious that a business must obtain sufficient revenue o each and <br />every, one of gilts, costs and contlin�ued efforts to iolg�nore or to delay dealing with this problem will <br />not make it go alway. <br />W <br />NCTV's proposialls for correcting the inefficiency in public access/local origination progiramming <br />I - <br />.ialve been before the Commission for over two years without formal actiongi <br />