Tempest in a Teapot?

A small number of Comcast franchise authorities are poring over the MSO’s ’04 rate filing after a report from a consulting firm suggested it overcharged subs for installs and premises equipment. The firm Ashpaugh & Sculco released a 42-pg report saying it didn’t believe that Comcast’s Form 1205, which it filed with the FCC last year, "can serve as a reliable basis for setting equipment and installation rates" for local franchising authorities. The report concluded the MSO’s formulation, calculated by averaging its national reach rather than on a community-by-community basis, caused subs in certain areas to be overcharged for installs and set-tops-deviations ranging from 4 cents for a remote to $13.35 for an unwired install. (Comcast’s methodology is nearly identical to that used by AT&T Broadband; thus far, only a scant percentage of Comcast LFAs have faulted the way the MSO devises install/premises equipment rates.) "Our prices for equipment and installation … are set in accordance with Federal guidelines and based on our audited financial data and established industry standards," Comcast said. "We think the conclusions of these municipal consultants about our equipment and installation prices are arbitrary and flat wrong." Comcast said it would appeal any rate decision based on the Ashpaugh & Sculco report.