106 STAT. 1466 PUBLIC LAW 102-385—OCT. 5, 1992 obligations under paragraph (1). In prescribing such regulations, the Commission— "(A) shall seek to reduce the administrative burdens on subscribers, cable operators, franchising authorities, and the Commission; "(B) may adopt formulas or other mechanisms and procedures in complying with the requirements of subparagraph (A); and "(C) shall take into account the following factors:
- (i) the rates for cable systems, u any, that are
subject to effective competition; "(ii) the direct costs (if any) of obtaining, transmitting, and otherwise providing signsils carried on the basic service tier, including signals and services carried on the basic service tier pursuant to paragraph (7)(B), and changes in such costs; "(iii) only such portion of the joint and common costs (if any) of obtaining, transmitting, and otherwise providing such signals as is determined, in accordance with regulations prescribed by the Commission, to be reasonably and properly allocable to the basic service tier, and changes in such costs; "(iv) the revenues (if any) received by a cable operator from advertising from programming that is carried as part of the basic service tier or from other consideration obtained in connection with the basic service tier; "(v) the reasonably and properly allocable portion of any amount assessed as a franchise fee, tax, or charge of any kind imposed by any State or local authority on the transactions between cable operators and cable subscribers or any other fee, tax, or assessment of general applicabihty imposed by a governmental entity applied against cable operators or cable subscribers; "(vi) any amount required, in accordance with paragraph (4), to satisfy franchise requirements to support public, educational, or governmental channels or the use of such channels or any other services required under the franchise; and "(vii) a reasonable profit, as defined by the Commission consistent with the Commission's obligations to subscribers under paragraph (1).
- (3) EQUIPMENT.— The regulations prescribed by the Commission under this subsection shall include standards to establish, on the basis of actual cost, the price or rate for—
(A) installation and lease of the equipment used by subscribers to receive the basic service tier, including a converter box and a remote control imit and, if requested by the subscriber, such addressable converter box or other equipment as is required to access programming described in paragraph (8); and (B) installation and monthly use of connections for additional television receivers. "(4) COSTS OF FRANCHISE REQUIREMENTS. — The regulations prescribed by the Commission under this subsection shall mclude standards to identify costs attributable to satisfying