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SEC Filings

S-4
RENAISSANCE MEDIA GROUP LLC filed this Form S-4 on 06/12/1998
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demographics, economic diversity and geographic setting. The Company's local
management will strive to become an integral part of the communities served.
These efforts will enable the Company periodically to adjust its local service
offerings to meet the needs of a particular community.
 
  In the communities it will serve, the Company believes that many customers
prefer to personally visit the local office to pay their bills or ask
questions about their service. As a result, the Company intends to maintain
conveniently accessible local offices in many of its service areas. The
Systems' local staff, typically native to the areas they serve, are familiar
with the community's customer base. The Company believes that this combination
of local offices and local staffing will allow the Company to provide a high
level of customer service. Additionally, the Company believes familiarity with
its communities will allow it to customize its menu of services and respective
pricing to provide its customers with products that are both diverse and
affordable.
 
  The Company will operate under a quality assurance program which stresses
responsibility and reliability among employees at all levels, and treats each
customer's concerns individually. To monitor the performance of its Systems
and the quality of its customer service, the Company will measure eleven
criteria on a weekly, and in some cases, daily basis. These criteria are:
service call response times, service call-to-total customers ratio,
installation response time, repeat service calls, new-customer service calls,
average outage duration, picture quality, occurrence of all-telephone-trunks
busy per measurement period, telephone answer rate and response time to
customer correspondence. The Company will also use market research tools to
gauge its performance and customer satisfaction and to tailor its local
service offerings to the particular community. Management believes that its
focus on system operations and customer service will increase subscriber
penetration, revenues and cash flow margins.
 
  The Company will aggressively market and promote its cable television
services with the objective of adding and retaining customers and increasing
subscriber revenue. The Company will actively market its basic and premium
program packages through a number of coordinated marketing techniques,
including: (i) door-to-door sales and subscriber audit programs; (ii) direct
mail for basic and upgrade acquisition campaigns; (iii) monthly subscriber
statement inserts; (iv) local newspaper and broadcast/radio advertising where
population densities are sufficient to provide a reasonable cost per sale; and
(v) cross-channel promotion of new services and pay-per-view movies and
events.
 
FRANCHISES
 
  Cable television companies operate under non-exclusive franchises granted by
local authorities which are subject to renewal and renegotiation from time to
time. These franchises typically contain many conditions, including: (i) time
limitations on commencement and completion of construction; (ii) conditions of
service including customer response requests, technical standards, compliance
with FCC regulations and the provision of free service to schools and certain
other public institutions; and (iii) the maintenance of insurance and
indemnity bonds. Certain provisions of local franchises are subject to federal
regulation under the 1984 Cable Act, the 1992 Cable Act and the 1996 Telecom
Act.
 
  As of March 31, 1998, the Systems held 46 franchises in the aggregate. These
franchises, all of which are non-exclusive, generally provide for the payment
of fees to the issuing authority. The Company's franchise fees typically range
from 3.0% to 5.0% of "revenue" (as defined in each franchise agreement). For
the past three years, franchise fee payments made by the Systems have averaged
approximately 3.7% of total gross System revenue. Franchise fees are generally
passed directly through to the customers on their monthly bills. General
business or utility taxes may also be imposed in various jurisdictions. As
amended by the 1996 Telecom Act, the 1984 Cable Act prohibits franchising
authorities from imposing franchise fees in excess of 5% of gross revenue
derived from the operation of a cable television system to provide cable
services and also permits the cable operator to seek renegotiation and
modification of franchise requirements if warranted by changed circumstances.
Most of the Company's franchises can be terminated prior to their stated
expirations for uncured breaches of material provisions. See "Legislation and
Regulation."
 
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