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<br /> <br /> <br /> <br /> <br /> <br /> from rates for basic service tier. In addition, the rates <br /> for such equipment and installations shall be unbundled one <br /> from the other. <br /> (c) Equipment basket. A cable operator shall establish <br /> an Equipment Basket, which will include all costs associated <br /> with providing customer equipment and installation under this <br /> section. Equipment Basket costs shall be limited to the <br /> direct and indirect material and labor costs of providing, <br /> leasing, installing, repairing, and servicing customer <br /> equipment, as determiried in accordance with the cost account- <br /> ing and cost allocation requirements of Section 8. The <br /> Equipment Basket shall not include general administrative <br /> overhead including general marketing expenses. The Equipment <br /> Basket may include a reasonable profit. <br /> (d) Hourly service charge. A cable operator sha11 <br /> establish charges for equipment and installation using the <br /> Hourly Service Charge ("HSC") methodology. The HSC shall <br /> equal the operator's antiual Equipment Basket costs, excluding <br /> the purchase costs of customer equipment, divided by the <br /> total person hours involved in installing, repairing, and <br /> servicing customer equipment during the same period. The <br /> purchase cost of custouier equipment shall include the cable <br /> operator's invoice price plus all other costs incurred with <br /> respect to the equipment until the time it is provided ta the <br /> customer. The HSC is calculated according to the following <br /> formula: <br /> HSC = (EB - CE) = H <br /> Where, EB = annual Equipment Basket cost; <br /> CE = annual purchase cost of all customer <br /> equipment; and <br /> H= person hours irivolved in installing and <br /> repairing equipment per year. <br /> (e) Installation charges. Installation charges shall <br /> be either: <br /> (1) The HSC multiplied by the actual time spent on <br /> each individual installation; or <br /> <br /> (2) The HSC multiplied by the average time spent <br /> on a specific type of installation. <br /> (f) Remote charges. Nionthly charges for rental of a <br /> remote control unit shall consist ot average annual unit <br /> purchase cost of the type of remote leased, including acqui- <br /> sition price and incidental cost such as sales tax, financing <br /> and storage up to the time it is provided to the customer, <br /> added to the product of the HSC times the average number of <br /> hours annually repairing or servicing a remote, divided by 12 <br /> to determine the monthly lease rate for a remote according to <br /> the following formula: <br /> Monthly Charge =[UCE -(HSC x HR)] = 12 <br /> Where, HR = average hours repair per year; and <br /> UCE = average annual unit cost of remote. <br /> <br /> Separate charges shall be established for each signifi- <br /> cantly different type of remote control unit. <br /> <br /> (g) Other equipment charges. The monthly charges for <br /> rental of converter boxes and other customer equipment shall <br /> be calculated in the same manner as for remote control units. <br /> Separate charges shall be established for each significantly <br /> different type af converter box and each significantly <br /> different type of other customer equipment. <br /> Page 7 <br />