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HomeMy WebLinkAbout1984/01/24 - Agenda Packet - Adjourned1 RA cLr -AI% \GX CITY COUNCIL -- AGENM Lions Park Community Contcr 9t6t Base Lino Road Rancho Cucamonga, California January 24, 1984 - 7:00 P -m- Ad]ourned Meeti� Cables a Television Needs Fs5e9320nf i. CALL TO �nDER A. Pledge of Allegianue to Flog. Frost p, Roll Call: Schlosser ' D, and Mikels 2 Background report on present cable television service in Rancho Cucamonga A Presentation / Disoussion B. Questions and Comments g, Overview and status report of cable television franohlsa process in Rancho Cucamonga A. Presentation /Discussion B. ouestions and Comments 4. Community input on types of services desired with future cable television systems in Rancho Cucamonga A. Presentation / Discussion B Questions and Commenta i g. Wrap -up and City Council direatio., g, ADdOURNMEUT J OVERVIEW OF MODERN CABLE COMMUNICATYONS SYSTEMS Before any rbview is made of cable television options as related to any specific community, it is useful to have a general understanding of the currant communications capa- bility of cable systems, the services and programming that are commonly p:avided now, and those that may bn anticipated in the foreseaab.e future This gunoral overview can then be utilized as a base, which can be modified to most special community = equirements. A. Urban Cable Systems :dode-n, urban-area cable systems have evolved to such an extent, as compared to °raditional CATV systems, that they represent almost a new dimension in tolecommunieations. Indeed, because of their ability to distribute a wide variety of tele- communications signals, including many non - television modes, the newer, more advanced systems are more properly referred u to as cable commnications e1'stema, rather than cable televia ion systems. Figure 1 illustrates, in simplified fo.:m, this evolution. • From a one -way medium which received and retransmitted broadcast television bignals only, cable systems norr provide many two -way services, some of wuicr do not oven involve residential sub- scribers. It should be noted that not only have the services been expanded, but cable systems now compete against a broader spectrum of competitors. For example, • In its early retransmission -only phase, cable sorvicoscompeted primarily against local broadcast television stations • With the introduction of pay -TV services, cable systems began competing against motion ictura theaters, as well as sports an of ar entartainmcnt evants designed to draw the audience cut of the home. • With the entry of two -way, non- entartainmont services, such as aacurity alarm monitoring, teleconferencing, data communications, etc. cable aystema are now also beginning to compote against tolecomnunications common carriers. I u Y coo OYU > r 0 P d till 4 LC T 0 4 UM °� UGC M~1M TC C V » O U 0 No no d A J w a N 4 l m U F A W a w Y w >U U ..� m 1 I >a >t i% ha �C UW W N V •F m 01aC UU pL Y C 1> •�N Okla FgN C V ~O W 0 0 y yg�gU W O UC- W G C A 4 1 6� F y q U .Oi uut v W m -'i Hazy OATa00;;a U6T 'TC tjl=W of n ,r ,°.i H W s N H u N N A 9 7 N 2 O O U C 9 L1 ti N F F u A a i4 .di w w U U O W w ti 0 = A U V V C O H C Y F O u m 3 - Thus, each expansion of cable system capacity provides a new services, but also makes more complex the questions of r regulation and economic viability. A modern, large -city cable system is, in affect, a hybrid system capable of providing so many tolecommunications services that it crosses traditional linos of definition pertains d to other electronic communi- cations systems. System Capacity and Technology A modern cable system, capable of two -way as well as the traditional one -way communications, can provide any or all of the following services: • pasidential One -Way -- These include the traditional MUVeorvices, essentially entertainment or informational programs provided to home subscribers. They represent the overwhelming proportion (over 90%) of cable industry revenues to date. • Residantlal/Intaractive -- These include sere ces now y ntro aced or now in development that require two -way signals between the home subscriber and the cable system headend. Services such as fire and intrusion alarm monitoring, energy contro , me at n , audience polling, e M tc., all J___ a group. Most urban systems constructed since 1972, when the FCC required a minimal two -way capability for all new "major market" cable systems, either have, or can readily add, a limited capability for interactive residential services. Actual revenue for such services has peen small to date, although some (e.g., fire - burglar alarm) appear to have great potential and are being marketed in a few cities. ° Institut "nal Or,e -Wa -- An example of this m rg-g- t e a re ea s on program from one school transmitted to a number of other schools, or from a bank Veadquarters to its branches. ly J f:C • Institut.onal /neomive -- Most institu- tiona users gree of two -way communications ecpability (e g., the tele- `' phone is an effective operational tool for businesses, while the radio is not), so that this group has the highest interest for institutions. There generally is a wide range of desired communications modes, including two -way video, ono -vay video plus voice return, two -way date, video plus data return, etc. Consequently, a cable system designed to offer all of those capabilities must be more complex and sophisticated, technologi- cally, than a one -way, party -line home subscr.bor network. The major advantage of cable communications, as compared to other media, is its capacity, i.e., the ability to carry and distribute a very largo number of signals simultaneously. This high capacity is ideal where many services and users are involved, such as in a major city, and makes the cost per service relatively low. The concept is the same as time-sharing e large computer, or accommodating a high volume of traffic on a highway. The already -high capacity of cable systems recently has been increased nven farther. Until about a year ago, commnr- • cial CATV amplifiers had an upper frequency limit of about 300 Megahertz (MHz). This effectively limited the capacity in any one direction to about 35 -37 TV channels simultaneously. This is derived as follows: The useful one -way bandwidth begins dt the lower edge of TV Channel 2, the lowest channel, which is 54 MHz,` and ends at the upper amplifier limit, in this case 300 MHz. Thus the useful bandwidth is 300 -54, nr 246 MHz. ° 20 MHz (88 -108 MHz) are reserved for the FM band. Therefore 226 MHz is avail- able for TV signals. Since each standard TV signal requires 6 MHz bandwidth, the capacity is 37.7 signals (or "channels -). Two channels, in the 108 -120 MHz range, usually are not used to avoid possible interference with aircraft navigational communications. Thus the theoretical 37 channels :s reduced to a practical 35 channels. A 300 MHz cable system is therefore a "35- channel system" and referred to as such. • *Frequencies below 54 MHz are generally reserved for reverse communications. - 5 - • Within the last your, a g,_ber of CATV equipment manu- facturers have announced the availability of amplifiers and related components that can operate to an upper limit of up to 400 MHz. Using thin range, cable systems can now deliver 52 -31 imultancous TV channels, plus FM, in one direction rather than the previous limit of 35 -37 channels. Most franchise aoplicants for large -city franchises in recent months (such as Minneapolis, Pittsburgh Portland, Dallas, Now Orleans, etc.) have proposed extended - bandwidth systems, with operatinq frequencies up to 400 MHz. Many have proposed two cables for residenti.l serv.ces, providing a capacity of 01 -M11— channels. It is likely that applicants for major future rune Tees w 11 propose at least this capacity. In addition to the cable(s) providing services to resi- dential subscribers., .t is now customary for modern cable systems to include a separate "institutional network ". This may be one or more cables linking major institutions such as public agencies, schools, hospitals, b.:sinesses, etc., and providing a variety of two -way communications services. The Institutional not-work can permit closed- circuit communications among institutions, without involving home residents, and also can provide, through interconnection with the home subscriber network, the ability for institutions to communicate with the general public. Figure 2 indicates the currently standard techniques for achieving two -wiy communications on cable networks. Figure 2 (a) generally is used for the residential network, which requires a very high capacity in the outbound (downstream) direction, and a limited return (upstroam) capacity. Figure 2 (b) and (c) art) used for the institutional network, which requires a greater upstroam capacity. r'or any community, therefore, even if the community imposad no ranuirements of its own, It Is likely that appli- cants waul— propose t o 0 owing: ° A realdgntial network, consisting of one or two trun and Tstribution cables passing every residence in a definad initial or primary" service area, with a -Capacity to deliver up to 54 TV channels par cable to each home. ° An institutional network, connecting eac me or nst tut on n trio community, with the capacity to distribute a broad range of two -way communications services ® This combination provides a highly flexible, dual - purpose network capable of delivering almost any conceivable tele- communications service within the community. - 6 - E FIGURE 2 BIDIRECTIONAL CABLE COMMUNICATIONS 54 -400 MHz FORWARD 52 -54 TV CHANNELS, PLUS F11 L DATA • `t REVERSE 5 -30 MHz 3 -4 TV CHANNELS S DATA (a) Sub -Split rechnigLa Single Cable, Bidi.:actional Co=unicatione 174 -40C MHz FOPNARD —0- 37. TV CHANNELS • •REVERSE 5 -110 MHz 14 TV CHANNELS (b) Mid -Split Technique Single Cable, Bidirectional Ccmmunicatione 54 -400 MH- FORWARD —10- 52 -54 TV CHANNELS, PLUS FH i DATA !1 E� REVERSE 54 -400 MHz 52 -54 TV CHANNELS, PLUS FM S DATA (c) Dual Cable Technique Each Cable Unidirectional - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7 - Apart from the configuration and capacity of the cable system, a number of technological features should be noted, as a tackground to future cable decisions These include the following, Satellite -to -Cable 5 atom Communications -- T o use o common Cat ORa satellites to relay signals to cable system headonds has been perhaps the single most important development in the cable industry in recent years. Since late 1975, when Home Box Office first used a Satellite to delivar pay -TV programming, the growth of satellite - delivered services has been dramatic. Since satellite communications costs are distance- indepande.,t, they can distribute "long -haul" signals at much lower cost than terrestrial networks. Also, satellites are ideal for the broadcast mode, where one signal is trans tmi t—T simultaneously to hundreds of cable systems, since a goo- stationary satellite can directly oversee much of the geographical area of the V.S. Throe communications satellites presently carry about 30 channels of programming for cable systomsA dit anal satellites will me launched in the near future, and the variety of programming is expected to increase substantially. As a result, a 54- channel, 400 is cable system, which has ample channaa capacity at presone, may be saturated in the next ive years or so. This is the reason many franchise applicants are now proposing dual -cablo configurations for the home subscr ar network. Ono aspect of satellite communications that may become important in the near future is the 'uplink" capability; i.e., tho ability to transmit signals orivinat-ng in a city to a seta to to be relayed to other parts of the U S., or oven inter- nationally. With transmission capability, events of spooial significance can be made accessible to a much broader audience. ° 0 tical Communications -- In recent years, opt ca communications has developed to the point of becoming more competitive with coaxial cable Optical communications - 8 - includes both the wire type, which utilizes lase fibers manufactured in cable form to tranH t qht signals, and the wireless type in which infra -red or laser signals are =anamitted in space from one point to another. At present, optical fiber cables are com- petitive for •suportrunk" applications, where many signals must be transmitted for long distances. They also can be utilized in ,existing underground ducts and conduit, where coaxial cable might be too bulky, since optical enbl.a are much smaller in 9iameter. Infrared transmission may be .,ssful for short local distribution links, under some conditions. It does not appear productive for a City to attempt to predict the relative costs and benefits of a now te:hnology to such a degree that it is forced upon a cable franchisee. Basically, opticaj communi- cations is simply another means of deliver - •'g electronic signals, and should be A iaplemonted only when cost - effective. Interactive Home Services -- 'Ph' -lo almost a FEW_nc Ise app icants now offer two -way and interactive home services, it must be noted that, as of 1981, only a handful of cabl.. systems actuelly provide this capabil- ity. The range of equipment available, therefore, is ertromely limited and may well be in short supply in the future. Except for one or two cable companies who have developed their own interactive equip- ment, almost all others expdct t.n purchase this equipment from outside vendors. Only two major sourer; exist at present TOCOM, Inc, and Pioneer. Both systems are described in Appendix A. They are generally cortigured for security alarm monitoring only, and can be expanded for other two -way services such as energy management, opinion polling, etc. • lop - g - The same lack of choice that governs two - way polling equipment, also i� evident in tha area of advanced converters, featuring addres- abl.Aty, to etext and memory storage capacity. For example, the TOCOM 55 /plus, a new converter that provides these features, has not yet been produced in quantity, and is stated to bu back - ordered for perhaps several years co come. A critical factor, therefore, in the ability to intrndLce nuw, interactive home services Will be tho availability of reliable, low -coat equipment in the necessary quantities for large systems. ° Im act of Other Technologies -- Rapid devolop- ment in of or tee 90- oq as may have a signi- ficant impact on cable systems and their services, and must be considered in establishing cable requirements. For example, the growth in the area of "personal computers" indicates that these • will pro orate vastly. At prices approaching an electric typewriter or a color television Sets ouch computers will be acquired in greater numbers by small organizations and individuals. WMIC most of these units will be used for stand -alone applications, there will be increasing need to communicate with larger computers, to access various data banks, or to use specialized software available only at large computer facilities. This need will lead to a growing demand for low -cost data communications networks. The cable system may be expected to address this demand, although its compot tive posture vis -a -vis common carriers remains yet t be determined. Similarly, the growth in videocassette and video disk equipment for persona use should Stimu ate some new service demand c cable systems. For service could utilize "electronic channelsto distribute �" movies, television courses or other video material, with video cassette recorders in homes and institutions recording the material for later playback. Such a service could utilize late -night hours, when many channels would otherwise be unused. 3 - 10 - Obviously, all of the technological develop- ments in areas that may impact on cable systems cannot be predicted. Those that appear to have dynamic growth po--eatial, however, should bo-evaluated as pact of establishing cable system requirements. C. Current and Anticipated SeLIices Assuming again for the moment that a co:mmInity imposed no special services or programming requirements, the franchise applications and proposals made to other large cities within the last year or two indicate that the following services would be offered, as a minimum: (1) Rome Subscriber Services (one -Way) (a) Local Television Stations -- MT-R--eal TV stations are carried (FCC requirement). (b) fistant Television Stations — Generally two or three distant television stations are imported, • usually through satellite communi- cations. Three signals now carried by satellite ares WOC (Ch P) New York wGN (CL,. S) -- Chicago wnS (Ch. 17) — Atlanta (c) Spatial Cable System Programs -- Vo�ications satellites now carry a variety of special programs designed exclusively for cables system viewers. These include: • C -SPJJt (U.S. Rouse of Representa- tives Coverage) • Cable News Network (24 -hour video news) • Nics.elodeon (children's prcgrazninq) • Cinemarica (for above -55 audience) • USA Network (Wadison Square Garden Sports, children's and women's programming) • Black Entertainment Television (programs oriented to black audiences) • Spanish International Network (Spanish - )anguage programs) • Religlous programming (Christian Broad- casting Network, People That Love, National Christian Network) ` BBC Programs • - 11 - • Telefrance (Frerch Programs) ' Alpha (ABC cultural programs) ° CBS Cable (CJS cultural programs) • Rockefeller Center TV Entertainment and Sport Programming Network (24 -hour sports) ° Las Vegas Entertainment Network • American Educational Tv Network • Appalachian Community Service Network ° Satellite Prngram Network • Modern Satellite Network (d) Automated Pre rams -- A variety of channels are programme n bulletin -board typo format, using text rather thLn video images. Typical channels includes • NA nal and International News • Bus)neos News /Stock Ticker • Sports News • Consumer Shopping Guido • Job Liotings ° weather Radar ° Transit /Traffic /Airline Information ° Local Events Guido (e) Local and COmmnnit Pro rams -- Channel capac ty USE y s a ocated to a variety of local and community users, including: • Government Access (may include separate channels for City, County, State agencies) • Educational Access (may include separate channels for public schools, colleges, parochial schools, etc.) • Public Access • Special Access (may include access for libraries, health care institutions, minority groups, community organiza- tions, etc.) (f) Pa -TV Pro rams -- All of the programs in (a) to e a ve ere provided as part of the "basic service" for one monthly rate. In addition, a number of pay -TV channels are offered, each at an extra monthly chLrge. Pay -TV seroices includes • Homo Box Office • Showtimu • The Movie Channel • Cinemax - 12 - eGalavision (Spanish language) Home Theater Network ° Pay -per -view (special events at a separate viewing charge) (2) Homo Subscriber Services (Two -Way and Interactive) of new interactive planned for the near future. These include: (a) Now Offered: ° Security alarm monitoring (fire, intrusion and madical alert) ° Videotext data -bank information 4cee97 and retrieval ° :'lay-cable (interactive video games) (b) Planneds ° Energy management ° Home shopping ° dome banking (3) Institutional. Cosmaunications Services All forms of two -way communications (video, data, voice, etc.) can be transmitted and received. Typical uses include: ° Video training and teleconferencing ° %lectronic mail ° ?acsimlle document reproduction ° Computer communications ° Inter- agency communications (e.g., I college tranumitting television course material to firemen in fire att dons ) ° Telemet•y (utility mote. reading, water level reading) ° Energy management ° Security alarm monitoring Generally, ill the area of entertainment services, including (1) (a) -(1) (d) and (1) (f) above , a ranchiso applicants offer essentially identical or equivalent services. Since these represent the primary attraction for home subscribers, the that is available applicants tend to offer almost all entertainment programming C, J - 13 - Consequently, the area in which communities can exert some influence is primarily that of non- entertaimnent services including: • Local and Community services and erograms -- (1) (e) above • Two -way and Interactivo home Subscriber Services -- (2) above. • Institutional Communr.cations Services -- (3) above. With respect to special or unique community requirements, these services are usually the ones receiving the most emphasis. D. Programming and Services Issues (1) One -Way Eetertainment and Information Scrvicos it has been noted above that in the area of entertait.rent services, most franchise applicants will offer identical or essentially equivalent services. Since there will be ample capacity, in terms of the numaer of available channels, and since the sources If entertainment programming are availablo to all cable system operators, the general practice is to carry all, or almost al„ significant..y viewed entertainment programs. This is particularly true in apolying for now franchises. There may be sor.e minor variations. For example, one applicr.nt may propose to combine religious programming, delivered via satellite, on a single composite channel while another al)o- cat ^s a separato channel for each religious service Similarly, programs shown during the day such as children's shown, may share the same channel with adult - orionted programs ttat arc curried in the evening. Essentially, therefore, the differences are more in channel allocation than in actual quantity of programming The only program services that might not be carried at all are chase that the cable operator believes attract no significant audience. Even here, t" general. tendency is to carry everything, since the incr• ientsl cost of the extra programs generally is small, and parts alarly in competing for a new franchise, paying the added coat is more desirable than deleting some programming and presenting the arpearance of offering less choice than the eomnotition. - 14 - This trend is true for pry -Tv programming alro. Three or four years ago, a franchise applicant generally would propose to offer one "maxi" pay channel such as Home Box office ("maxi" refers to a maximum range of movies and special show, including some R -rated films not considered suitable for children, while "mini" refers to a pay channel offering only G or GP -rated movies) and one "mini" channel. Now, it is not uncommon for applicants to propose carrying as many as six or seven pay channels. Although there is considerable duplication of the movies shown on each channel, the channels otherwise might go unused. In addition, cable operators have found that some percentage of the population is willing to subscriber to two or more pay channels, which 'increases system revenue With respect to information services, as distinguished from entertainment, t ese usua y are automated tent programs rather than video, as exemplified in C. (1) (d) above. Until recently, the sources for such programs were two -fold: E Non -local information in alphanumeric news -tc%or form is purchased from national agencies such as AssOCiated Press, Reuters, etc., and transmitted • to the cable system via telephone lines At the cable system headend, the informa- tion is formatted for display on the cable subscriber's TV set. Local information, such as job listings, a opp ng gui e, etc., is entered into a computer memory storage at the cable system headend by using keyboard -entry •chr.racter generator" equipment This information is updated manually on a periodic basis, and entered into the cable system for display. Whether local or non - local, the information provided by these automated channels generally is current and transitory, in the sense that it is not stored for —I g -range uture use Recently, another type of information service, the so- called "data- bank," has been proposed for provision to cable subscribers. In data -bank, applications, a large amount of information about a prrticular subject is stored in computer form. For example, the New York Times has a data -bank of old news stories, Dow Jones a data -bank of past stock market quotations, there are data -banks of medical and pharmacological information, etc. 40, • - is - For cable systems, the information in such data -banks can be made available for display either on a ore -way or interactive basis On a one -way basis, the entire data -bank is displayed sequentially, one "page" at a time, and repeated periodically On an interactive basis, the subscriber, by using a company - supplied intoractive converter, can request spocific items of information from the data -bank, using a method of access and retrieval that selectively proceeds to lower levels of detail, and locates and extracts the desired information Data -bank services are now beginning to be proposed for new, major market, cable systems The major undetermined factor is not the necessary technology, but which data -banks would be of sufficient value or interest to enough cable subscribers to justify the cost of adapting them for cable system use. (2) Two -Way and Interactive Home Services Unlike one -way services, the entire area of two -way and inte.active services is much less clearly defined and subject to more economic uncertainty. These services are new, expensive to implement and there is no substantial history to indicate market demand, value of service to the subscriber, changes in organizational structure necessary to delivery the service efficiently, and other critical factors. Nevertheless, these new services have the potential for expanding the impact of cable systems upon the public by orders of magnitude, in areas quite apart from entertainment. The potential public benefits are such that any city should consider carefully what requirements might be established, or incentives provided, to insure that two -way and interactive home services will be introduced as soon as technically and economically feasible Based upon other recent major market franchise proceedings, host or all of the applicants for the major new franchises will offer some two -way and interactive services _'initially The most likely candidates a_e: ° Security al monitoring, including monitoring osrm sro a�Ttrusion detectors and a manually- activated medical emergency alert switch or pushbutton Most cable companies that provide or have proposed this service use standard smoke .41 ft and intrusion detectors for installation in the subscribers' hones These provide - 16 - • an electrical output signal, which is connected to the cable system through home terminal, which also includes a digital code identifying the address of the home A computer at the cable system headend controls the scanning of each home terminal in sequence, usually scanning thousands of homes in a few seconds. When an alarm is detected, the location is identified and appropriate action taken installation costs range from $100, for a minimum package of one smoke detector, one me caT alert switch, and perhaps one door switch, up to thousands of dollars for more comprehensive protection. Monthly monitoring charges generally are in the $10 -20 range. some form of videotext service, which may or may not offer interactive capability initially. Tne technique that is most popular currently is to transmit text • concurrently with television signals, in the unused 'vertical retrace interval" time periods when the video "dot" generated by the electron beam in the cathode- ray -tube is moved back from the end of one "line" of a television frame to the beginning of the next. This is similar in concept to utilizing the "dead time" of a typewriter when it swings back the carriage to the beginning of the next line. (see Appendix 0) Converters, such as the Tocom 55 -Plus, are now becoming available that can receive and store the incoming video signals, and format them for display on the sub- scriber's Tv screen. Thus any channel can Asplay either the video program or the text information as selected Interactiv -s data -bank services, which permit subscribers to request, access and receive selected data, bank information, are not yet being offered routinely, although a number of cable companies are investigating this area 0 - 17 - other two -way and interactive serv.ces have been proposed for thz future, rather than initially, on the basis that they evaluation. These include, among the need further testing and most prominent: Energy management Home shopping Home banking the All of these are now being tested on a small scale, with )nuication that development may be complete in the near future. In general, two -way and interactive there is asfinanc t:l expected to be revenue - generating, incentive for the cable operator to introduce them as soon as possible There are also disincentives, howevd basicrandz pay -TV on investment is being tea reluctcnt to expand ecialized services, the Franchisee may be areas that require further capital investment and ap arelnotirequiredifor angantertainmentIDorientedccabletsysLemly Furthermore, there may be some caution about competing with specialized supplters such as the such Furthermore, there May indusP Y that offer the same services, existing security alarm companies. For these reasons, it may be necessary for a city to to insure that everyleffagraPpearsbto be teehnicallycandhaconotacth y services as rapidly leaving all decisions solely feasible, rather than simply franchisee (3) Institutional Services callyInstitutionalthanminteractives homes services. Although nomi- rovided data there are numerous examples of individual services that have been implemented (e.g., the Manhattan cable)3 }therehis no operating communications services for some Y metropolitan -area, full - axperience available for a large - scale, service institutional network. A number o£ such t (ranch are et been c..mpleted and put into service• committebutohavennotuytion as the result of recent franchise awards, has the gruates The institutional network, however, "- ® potential for in�rovina ublic- sector communications, since to�tnstitution communicationsec which 9cannot be satlsfied��throughn ional residential network. the use of the convent - 10 - • can Five Of the aredgivenr�iniAppendix Cery that They include: • use of cable ,mmunications for court arrangements. • college courses via two -way TV. • Ftreman training via TV into each firs station. • Energy management for municipal facilites via cable C Data communications via cable. Many other systems by e being networks are plannedd, , completed in various cities- The range of sThereiaretalso infancy, and man •uncertainties remaining to be resolved. some overall conclusions with respect to institutional services can be reached at this Po i • There is significant interest in the possible benefits of cable communications among both public and private institutions, but also uncertainty as to specific costs and benefits • Some public agencies approach cable services and facilities on the presumption that they would be provided at no charge by the franchisee This may or may not be the case •arether agencies (primarily those that presently 4 for common- carrier services) view the cable system as b rathers alternative to ofree"service. lines, • There is some uncertainty as to the ne..r -term and long -range capacity and capabilit} that the potential users will need The question of institutional network capacity ,and cneebsliot• may perhaps be the simplest to address In g potential institutional users fall into the following categories: - 19 - • ° Video communications amon ins_S tutions, Tor train ng, a ucation, to econ_eT renting and telemedicine., ' Data communications amon institutions, to access a common ata base or to traffic data from one location to another. ° Video comnunications to the eneral public, or a ucat ono or n ormatron purposes, through interconnection from the institutional to the home subscriber network. A11 of these capabilities are within the normal design abilities of a modern cable system, so t at nothing unusual is involved in requiring them. The technical questions, therefore, are reduced to which institutions should be connected, and what overall communi-cations capac ty s ould be provided. In these areas, a prudent objective appears to be to require access for all public institutions that have any fore- see communications n eeas, an—ca ressonablo capacity to meet at least the worst -case traffic conditions t at might occur in the next 7 -8 years (the first half of a cable franchise period). With respect to capacity, if the cable franchisee installs only a single cable for the institutional netwo -k, with 400 MF:z technology a "mid- split" configuration can provide over 20 channels capacity in either direction. This capacity appears co i-e sufficient for the short -term Thus, even if the cable operator installs the equivalent of a minimum -coat institutional network, enough capacity will be available for some time to come. (4) Local and Community Prc•graimeing Local, community and "access" programming generally includes one -way, television - format programs to residentiaL subscribers from government agencies, schools, health -care institutions and social, cultural or civic organizations The programs are .ielivered on channels dedicated for community or access use. The charnels either are allocated for full -time use by sp -cific organizations, or are shared by any number of qualified ccmunity groups 141 - 20 - G] Since modern cable systems hive great channel capacity, and since, further, there presently is a scarcity of attractive programs to fill the channels, cable companies are able to allocate almost any desired number of channels to community use. This costs the cable company little or nothing, since there fa not available sufficient attract ve programming £rom other sources to fill up these channels. The offer of a "dedicated" channel in many cases is designed more to ain pod will toward ac irin 1_hc franchise than in any expectation t at rhos. CH none s will ve usod fully, or even at all. preparing local programs that will attract any significant audience is a difficult, time - consuming and, in some cases, expensive task. It should be noted in passing that each of the major networks, ABC, CBS and NBC, program only "one channel" in the sense of providing only enough programming for a single 24 -hour distribution channel Yet each ^etwerk spends hundreds of millions of dollars annually in this task. Obviously, local programmers cannot match these resources, but nevertheless are competing for a share of the same audience. • The local or community programming, t ero ore, must e of-R-5-m- cient interest to attract its target share, in spite of this competition. This taken creative and imaginative progra=ing, if not professional polish. most community organizations pro- bably cannot produce such programs more than perhaps once a month, and in many cases even more rarely Consequently, the need is not for more or dedicated channels, but rather for some central au rt rou that can provide both facilities and trained personne to assist the community organi- zations, most of whom will be only occasional cable system users, and could not afford their own equipment o-r—full tine ctaff. With such a support group, programs can be produced efficiently and as prafessionally as resources permit. It is also logical for one or two cow unity channels to be shared initially by all users, so that there will be suffi- cient programming to attract some viewers and keep them returning to that channel Later, if these shared channels become saturated, additional channels can be provided. •