PRESS RELEASE

On August 28, 1997, the Federal Communications Commission issued a Further Notice of Proposed Rulemaking in the Telecommunications Services Inside Wiring proceeding, CS Docket No. 95-184. The Further Notice is solely designed to seek comment on a proposal from Independent Cable and Telecommunications Association (ICTA), relating to the cable demarcation point for multiple dwelling units (MDUs).

ICTA Chairman Quotation

"Today, the FCC took a step that if timely adopted and implemented will enhance competition in the delivery of cable TV and telephone services to consumers across the country," said ICTA President John Norcutt. "Private cable and telephone operators have a state-of-the-art product and are well situated to provide desired services to more and more MDUs. This proposal will reduce one regulatory barrier so that we can compete more effectively with the large, entrenched franchised providers. That is good for the consumer, private cable operators and MDU owners because telecommunications competition will be increased when this rule is finalized." Mr. Norcutt is CEO of OnePoint Communications, a video and telephone service provider, headquarted in Washington, DC.

What is ICTA

Independent Cable and Telecommunications Association (ICTA) is a trade and service association. Its members include private cable operators, property owners and managers, vendors of cable and telephone equipment and others who want private, alternative service providers to succeed. The private cable and telephone industry has hundreds of small and medium size companies all across the country that offer state-of-the-art technology, service tailored for individual customers and price competition for the large franchise cable and telephone companies. The private industry focuses on MDUs including apartments, condominiums, cooperatives, college campuses, hotels/motels, prisons, etc. ICTA - working with elements of the property industry - has been a lead advocate for the compromise plan proposed in the FCC Further Notice.

What the FCC Proposes

ICTA's proposal if ultimately adopted by the FCC will, under many circumstances, make it easier for MDU owners to switch video providers and will enable private, alternative video providers to have more opportunities to provide service at MDUs. The ICTA plan establishes that where an MDU owner wants to switch video service providers for the entire complex, within 30 days after the incumbent provider receives notice from the owner of the conversion (which notice must be provided at least 90 days prior to the conversion), the current provider must notify the MDU owner of which of the following three options the provider has selected: 1) removal of the inside wiring, except that wiring within the individual unit and that portion extending 12 inches outside thereof that may be purchased by the tenant or owner; 2) abandonment of the wiring without disabling it; or 3) sale of the wiring to the owner of the MDU or the new provider. If the incumbent chooses to sell the wiring, it has 30 days to negotiate the sale with the owner or new provider. If the parties are unable to agree to sale terms, the incumbent must choose to either abandon the wire and disconnect its feeder lines (without disabling the wiring) upon close of the 90 day period or complete the removal of the wiring promptly after close of the 90 day period. ICTA has requested that the FCC establish an enforcement mechanism for any incumbent provider who does not comply with its selection or who fails to abide by the specified time frames.

Tenant Selection

The Commission also has released for comment ICTA's proposal that, in those situations where MDU desires two providers to serve the MDU (as in Mandatory Access states), the MDU owner must notify the current provider 60 days in advance in order for the three part election to occur. Thereafter, the current provider has seven days in which to implement the election when a tenant actually selects a new provider.

Enhance Competition

ICTA's proposal on the cable demarcation point as released by the FCC will enhance competition in the MDU market for video services, consistent with the objective of the Telecommunications Act of 1996 to increase competition in the provision of telecommunications services. FCC adoption of the plan will increase competition by preventing incumbent cable providers serving MDUs from claiming, with no intent to do so, that they will remove their wiring if requested to leave the property. Many MDU owners and alternative providers believe that certain incumbent providers have previously engaged in such conduct as a means of deterring MDU owners from selecting a new provider since many owners do not want their properties rewired. The proposal if implemented will also prevent incumbent providers from merely disabling the wiring after the termination, which conduct merely increases the new provider's costs with no benefits whatsoever to anyone.