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RENAISSANCE MEDIA GROUP LLC filed this Form S-4/A on 08/06/1998
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the aggregate, have a material adverse effect on the Company's business,
results of operations or financial condition.
                          LEGISLATION AND REGULATION
  The cable television industry currently is regulated by the FCC and certain
state and local governments. In addition, legislative and regulatory proposals
under consideration by the Congress and federal agencies may materially affect
the cable television industry.
  The Cable Acts and the 1996 Telecom Act amended the Communications Act and
established a national policy to guide the development and regulation of cable
television systems. The 1996 Telecom Act, which became effective in February
1996, was the most comprehensive reform of the nation's telecommunications
laws since the Communications Act. Although the long term goal of the 1996
Telecom Act is to promote competition and decrease regulation of various
communications industries, in the short term, the law delegates to the FCC
(and in some cases to the states) broad new rulemaking authority. Principal
responsibility for implementing the policies of the Cable Acts and the 1996
Telecom Act is allocated between the FCC and state or local franchising
authorities. The FCC and state regulatory agencies are required to conduct
numerous rulemaking and regulatory proceedings to implement the 1996 Telecom
Act and such proceedings may materially affect the cable television industry.
The following is a summary of federal laws and regulations materially
affecting the growth and operation of the cable television industry and a
description of certain state and local laws.
  Rate Regulation
  The 1992 Cable Act authorized rate regulation for certain cable
communications services and equipment in communities that are not subject to
"effective competition" as defined by federal law. Most cable television
systems are now subject to rate regulation for basic cable service and
equipment by local officials under the oversight of the FCC which prescribed
detailed guidelines for such rate regulation. The 1992 Cable Act also required
the FCC to resolve complaints about rates for nonbasic cable programming
services (other than programming offered on a per channel or per program
basis) and to reduce any such rates found to be unreasonable. The 1996 Telecom
Act eliminates the right of individual customers to file rate complaints with
the FCC concerning certain CPSTs and requires the FCC to issue a final order
within 90 days after receipt of CPST rate complaints filed by any franchising
authority after the date of enactment of the 1996 Telecom Act. The 1992 Cable
Act limits the ability of cable television systems to raise rates for basic
and certain cable programming services (collectively, the "Regulated
Services"). Cable services offered on a per channel (a la carte) or per
program (pay-per-view) basis are not subject to rate regulation by either
local franchising authorities or the FCC.
  The 1996 Telecom Act deregulates rates for CPSTs after March 31, 1999 for
most MSOs and, for certain small cable operators, immediately eliminates rate
regulation of CPSTs and, in certain circumstances, basic services and
equipment. Deregulation will occur sooner for systems in markets where
comparable video programming services, other than DBS, are offered by local
telephone companies, or their affiliates, or by third parties using the local
telephone company's facilities, or where "effective competition" is
established under the 1992 Cable Act. The 1996 Telecom Act also modifies the
uniform rate provisions of the 1992 Cable Act by prohibiting regulation of
non-predatory bulk discount rates offered to subscribers in commercial and
residential developments and permits regulated equipment rates to be computed
by aggregating costs of broad categories of equipment at the franchise,
system, regional or company level. The FCC and Congress continue to be
concerned that cable rates are rising too rapidly. The FCC has begun to
explore ways of addressing this issue, and a bill was recently introduced in
Congress which would repeal the deregulation of CPSTs now scheduled for March