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SEC Filings

S-4/A
AVALON CABLE OF MICHIGAN INC/ filed this Form S-4/A on 05/28/1999
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  . carriage of local sports broadcast programming,

  . political broadcasts and advertising,

  . advertising contained in non-broadcast children's programming,

  . consumer protection and customer service,

  . technical standards,

  . consumer electronics equipment compatibility,

  . closed captioning, and

  . emergency alert systems.

   The FCC has the authority to enforce its regulations through cease and
desist orders, substantial fines and other administrative sanctions including
the revocation of FCC licenses needed to operate certain transmission
facilities used in connection with cable operations.

   Over the past several years, Congress and other governmental bodies have
considered bills and administrative proposals related to cable television.
Other legislative and administrative proposals regulating cable television will
likely continue to come before lawmakers and administrative agency.

Copyright

   The Copyright Act requires cable television systems to obtain a compulsory
copyright license covering the retransmission of television and radio broadcast
signals. In exchange for filing periodic reports and paying a percentage of
revenues to a federal copyright royalty pool, cable systems obtain a compulsory
license to retransmit the copyrighted material on broadcast signals. Congress
and the Copyright Office have considered possible changes to, or elimination
of, the compulsory copyright license. The elimination or substantial
modification of the cable compulsory license could adversely affect our ability
to obtain suitable programming and could substantially increase the cost of
programming available for distribution to our subscribers. We cannot predict
the outcome of this activity.

   Cable operators distribute programming and advertising that use music
controlled by three primary performing rights organizations, the American
Society of Composers, Authors and Publishers, Broadcast Music, Inc. and the
Society of European Stage Authors and Composers. In October 1989, the special
rate court of the U.S. District Court for the Southern District of New York
imposed interim rates on the cable industry's use of music controlled by the
American Society of Composers, Authors and Publishers. American Society of
Composers, Authors and Publishers and cable industry representatives have met
to discuss the development of a standard licensing agreement covering music
controlled by the American Society of Composers, Authors and Publishers in
local origination and access channels and pay-per-view programming. We cannot
predict the ultimate outcome of these industry negotiations or the amount of
any license fees required for past and future use of music controlled by the
American Society of Composers, Authors and Publishers. We do not believe such
license fees will materially impact our financial position, results of
operations or liquidity. The same U.S. District Court for the Southern District
of New York recently established a special rate court for Broadcast Music, Inc.
Broadcast Music, Inc. and cable industry representatives recently concluded
negotiations for a standard licensing agreement covering the performance of
Broadcast Music, Inc. music contained in advertising and other information
inserted by operators into cable programming and on certain local access and
origination channels carried on cable systems. The Society of European Stage
Authors and Composers and cable industry representatives have agreed on an
interim licensing plan pending adoption of a standard licensing agreement.

State and Local Regulation

   Because our cable systems use local streets and rights-of-way, state and
local governments regulate many aspects of our business, typically through the
cable franchise process. Generally, a municipality will grant a cable system a
non-exclusive franchise to occupy the streets and rights-of-way to operate a
cable system, subject to the terms of the franchise. Most franchises specify
terms of between 5 and 15 years, subject to earlier termination for material
noncompliance. The terms and conditions of franchises vary materially from

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