Cable outlines common operating standards

Jeff Baumgartner, CED
CED Broaband Direct, October 21, 2002

In response to pressure being applied by Wall Street and as part of an effort to regain investor confidence in the cable sector, almost a dozen MSOs pledged support of new voluntary guidelines for consistent operating statistics.

The guidelines, established with the support of the National Cable & Telecommunications Association (NCTA), are outlined as follows:

The identification of six standard reporting categories for capital expenditures: customer premise equipment, commercial, scalable infrastructure, line extensions, upgrade/rebuild, and support capital.
Establishment of a new definition of customer relationships: "The number of customers that receive at least one level of service, encompassing voice, video, and data services, without regard to which service(s) customers purchase."
A standard definition for revenue generating units (RGUs): "The sum total of all primary analog video, digital video, high-speed data, and telephony customers, not counting additional outlets."
Eleven publicly traded MSOs pledged to support and adhere to the new guidelines no later than the first quarter of 2003. They are: AT&T Broadband, Time Warner Cable, Comcast Cable Communications, Charter Communications, Cox Communications, Adelphia Communications, Cablevision Systems Corp., Mediacom Communications, Insight Communications, CableOne and General Communications Inc.

"This is a positive development for our industry and our investors, who we believe will gain a clearer picture of our companies through these actions," said Michael Willner, Insight CEO and NCTA chairman.