WHEREAS, AT&T Broadband has announced a rate increase for Oakland cable subscribers, effective June 10, 2000; and

WHEREAS, the proposed adjustment reflects an increase in subscriber rates of 1.62% for basic service and 6.06% for expanded service, respectively, for a total proposed increase of 4.05%; and

WHEREAS, in addition to the proposed rate increase, AT&T has also announced an increase in the price structure for equipment and installation; and

WHEREAS, it has been determined that Oakland subscribers have historically paid higher average rates for cable services with a lower number of channels provided; and

WHEREAS, pursuant to the cable transfer agreement entered into with AT&T on February 16, 1999, AT&T agreed to address the rate disparity by suspending rate increases until June of 2000 or upon completion of the rebuild, whichever occurred first; and

WHEREAS, the rate freeze resulted in some benefit to Oakland subscribers, yet no advanced services are being offered and Oakland subscribers continue to pay a disproportionately higher rate for the services provided; and

WHEREAS, AT&T has the discretion to defer rate increases as indicated by their decision not to increase rates in other jurisdictions where there is competition for cable services.

NOW BE IT RESOLVED, that the City Council strongly urges AT&T to take into account the impact of disproportionate rates on Oakland residents in determining area rate structures; and

FURTHER RESOLVED, that the City Council on behalf of Oakland cable subscribers, formally opposes the proposed increase currently scheduled for June 10, 2000; and

FURTHER RESOLVED, the City Council requests that AT&T defer any rate increase until such time as additional services are provided to Oakland residents and rates do not exceed rates charged in neighboring jurisdictions.

IN COUNCIL, OAKLAND, CALIFORNIA, , 2000