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O'CONNOR & HANNAN • ATTORNEYS AT LAW Steve Sarkozy April 12, 1990 • Page 6 3. DECREASED NUMBER OF USERS. Mr. Eddy argued that since the numbers of producers and programming had not reached the level proposed, the commitment should be reduced. This argument is, of course, circuitous. The Commission believed that the reduced number of access producers was a direct result of the failure by the company to commit adequate resources and energy to the development of community programming. 4. DECREASED PENETRATION. The company argued that the proposal monies for community programming were based on the assumption that there would be many more cable sub- scribers in the North Suburban area than are currently present. The company argued that the cable penetration in the metropolitan area is the lowest of almost anywhere else in the country. Therefore, the company was prepared to argue to a court that the community programming commitment should also be lowered propor- tionately. 5. INFLATION RATE. The company argued that the original proposal was inflated 9% annually, while the consumer price index had not increased by that rate over the previous years. Therefore, the commitment should be reduced. ALTERNATIVES AVAILABLE TO COMMISSION The Commission then considered a number of negotiating alter- natives available to it. Generally the three perameters of alternatives considered by the Commission were: ( 1) Successfully negotiate the turning over of the community programming function to the Cable Commission or its designee. (2) Fail to negotiate a settlement with the company, and do nothing, maintaining the status quo. In this alternative, the company could still implement a Section 625 modification request of the community programming requirements, bringing . into the effect the arguments listed above.