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Mr. Shrie Sherwood City of Pleasanton July 25, 1994 Page 3 counting of channels is a key factor in determining the rate perni=ted. Viaccm indicates that in December 1993, there were a total of 34 regulated channels (Basic and the Satellite Value Package) of which 18 were satellite delivered. On September 30, 1992, Viacom indicates that there were a tetal of 32 regulated channels and 18 satellite channels. Contained in this total are channels which are counted as regulated channels evexa though they are shared with services that are otherwise exempt from rate regulation.4 These include: channel 0 which carries the California Channel five hours per day, Monday-Friday and Playboy the remainder of the time. Channel 27 which carries C-SPAN 2 seven hours per day and Viewers Choice the remainder of the time. In 1992, two channels were of similar shared use, although hours of carriage were not indicated (Channel 0 CNBC/Playboy, Channel 34 KMTP/C-SpAN) The initial FCC rules were silent on how channels were to be carried which were shared in use. on June 1, 1994, the FCC issued a "Question and Anawer" which attempted to clarify this issue. In item number 1, the FCC stated: "QI: If a channel is split between satellite and non-satellite programming or between broadcast end non-broadcast programming, how is that channel treated for purposes of completing FCC Form 1200 and Form 393? Ai: Channels should be classified according to their preponderance of use. Thus, a channel that carried satellite programming more than half the time would be considered to carry satellite programming. Similarly, a channel carrying non- broadcast signals more than half the time would be considered to carry non-broadcast signals. See Form 1200, lines C2, H3; Form 393, page 22." 4 services which are provided an a per channel (e.g., HBO) or per