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Ur./Dr. Eggert <br />Ju�l�y 8, 1988 <br />Page Two <br />The .4,5 per month pier subscriber has not been arbitrarily <br />determined. ft represents, 1.53% of monthl irloss subscriber <br />revenue el, which Is the maximum amount the buslinesis can tolerate, <br />without extraordinary, pr'ess�ure on the rates.1 <br />We hiav�e repeatedly submitted detailed reivenue and cost mode <br />b ls showing the feasibility of thi, <br />approach. We arlei ons. (Attachment A) - <br />once agat ► <br />su�mi'tting copies of the prior-submissi <br />THESE PROPOSALS ARE NOT NEGOTIATING POSITIONS. They are a sincere efforti to provide <br />I I <br />"mum funding and to assiure, the clurrent, level of service without waste and without burdening <br />mam <br />subscribers with totally unnecessary charges. <br />I I I i I <br />Cable e i i I <br />Indeed, a receint article in T lev's*on Busliness points out t�h�at normal cabile company <br />11 <br />expenditures for, this piuripose are less. <br />'I'Wh�ile few systelms aidmit what they sipeind on community, programming, estimates <br />rainge from $,O.O�15 to $D.051 pier sub; or somewhere between 1 to 2 percent of <br />j.Aninual gross reivenues." <br />ItIolk"I <br />We wish also, to advise you, once ag�ai�n, that the current level of bonding required of' th. <br />Company, bears no relationsihip to, realistic needs or potential limablailities and w1s, much higheir, o <br />a clompara,bile, basis, than anywherie else in t�he Unil�ted States. NCTV"s coist to, maintain this leiv <br />of' bonding is very bu�rd�en�some and the bonds tie up, NCTV's credit li�nes,, with no benefit ti)i <br />0 <br />ainyo ompanies., <br />