FCC Reduces Inflation Rate for Cable Operators

April 3, 2013

As described in the instructions for FCC Form 1240, cable operators may adjust the non-external cost portion of their rates for inflation based on quarterly figures released by the Federal Communications Commission.  The fourth quarter 2012 inflation factor for operators using FCC Form 1240 is 0.98%.

The adjustment factor of 0.98% is a measure of the annualized change in prices occurring over the period from October 1, 2012 to December 31, 2012.  All adjustments are based on changes in the Gross National Product Price Index (GNP-PI) published by the United States Department of Commerce, Bureau of Economic Analysis (BEA).  The Media Bureau obtained the chain-type price indices from the BEA news release dated March 28, 2013 (BEA 13-13) at Table 6 (Addenda: Gross National Product).

The inflation adjustment factor is calculated by dividing the GNP-PI for the fourth quarter of 2012 (116.086) by the GNP-PI for the third quarter of 2012 (115.804).  The result of this calculation is converted from a quarterly change measurement factor to an annual change measurement factor by raising it to the fourth power.

Operators calculating the Inflation Factor for a True-Up Period which includes some portion of the fourth quarter of 2012 should enter the inflation factor on the appropriate lines of Worksheet 1 of FCC Form 1240 as “0.0098.”  Operators using this factor for calculating the Projected Period Inflation Segment of FCC Form 1240 should enter this number on Line C3 (January 1996 version), or Line C5 (July 1996 version) as “1.0098″.

To date, the Commission has released seventy quarterly inflation factors for use with FCC Form 1240.


The following table lists these factors beginning in 2006:[1]

 

 

Year 

Quarter

Dates Covered

Inflation Factor

2006                First       Jan. 1, 2006 – Mar. 31, 2006

3.12%

2006                Second       Apr. 1, 2006 – Jun. 30, 2006

3.31%

2006                Third       Jul. 1, 2006 – Sep. 30, 2006

1.89%

2006                Fourth       Oct. 1, 2006 – Dec. 31, 2006

1.67%

2007                First       Jan. 1, 2007 – Mar. 31, 2007

4.17%

2007                Second       Apr. 1, 2007 – Jun. 30, 2007

2.65%

2007                Third       Jul. 1, 2007 – Sep. 30, 2007

1.03%

2007                Fourth       Oct. 1, 2007 – Dec. 31, 2007

2.45%

2008                First       Jan. 1, 2008 – Mar. 31, 2008

2.68%

2008                Second       Apr. 1, 2008 – Jun. 30, 2008

1.11%

2008                Third       Jul. 1, 2008 – Sep. 30, 2008

3.92%

2008                Fourth       Oct. 1, 2008 – Dec. 31, 2008

0.55%

2009                First       Jan. 1, 2009 – Mar. 31, 2009

2.76%

2009                Second       Apr. 1, 2009 – Jun. 30, 2009

0.00%

2009                Third       Jul. 1, 2009 – Sep. 30, 2009

0.41%

2009                Fourth       Oct. 1, 2009 – Dec. 31, 2009

0.41%

2010                First       Jan. 1, 2010 – Mar. 31, 2010

1.08%

2010                Second       Apr. 1, 2010 – Jun. 30, 2010

1.08%

2010                Third       Jul. 1, 2010 – Sep. 30, 2010

2.09%

2010                Fourth       Oct. 1, 2010 – Dec. 31, 2010

0.41%

2011                First       Jan. 1, 2011 – Mar. 31, 2011

2.06%

2011                Second       Apr. 1, 2011 – Jun. 30, 2011

2.54%

2011                Third        Jul. 1, 2011 – Sep. 30, 2011

2.57%

2011                Fourth        Oct. 1, 2011 – Dec. 31,2011

0.89%

2012                First       Jan. 1, 2012 – Mar. 31, 2012                2.03%
2012                Second       Apr. 1, 2012 – Jun. 30, 2012                1.55%
2012                Third        Jul. 1, 2012 – Sep. 30, 2012                2.65%
2012                Fourth       Oct, 1, 2012 – Dec. 31, 2012                0.98%

 

The Commission releases a new quarterly inflation factor for operators using FCC Form 1240 four times each year.  The inflation factor for a given quarter is usually released between three and four months after the end of the quarter, depending on the schedule of the Department of Commerce.  The release of a new factor is posted on the Commission’s Internet site at: http://www.fcc.gov/mb/csinflat.html.

 

Media Contact:  Janice Wise at (202) 418-8165

Media Bureau Contact:  Jane Frenette at (202) 418-2245

TTY:  (202) 418-0432 or 1 (888) 835-5322

–FCC

Read more: FOURTH QUARTER 2012 INFLATION ADJUSTMENT FIGURES FOR CABLE OPERATORS USING FCC FORM 1240 NOW AVAILABLE – FierceCable http://www.fiercecable.com/press-releases/fourth-quarter-2012-inflation-adjustment-figures-cable-operators-using-fcc#ixzz2PQtkvPvA
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