* Microsoft Corporation, Interactive TV Development Group, 1 Microsoft Way, Redmond WA 98052 Phone (206) 703-5384, Fax (206) 936-7329

** Carnegie Mellon University, Department of Engineering and Public Policy, Pittsburgh, PA 15213 Phone (412) 268-3436, Fax (412) 268-7196

***Next Level Communications, General Instrument Corporation, 111 N. Broad St., Doylestown, PA 18901 Phone (215) 230-4093, Fax (215) 348-7074

****General Instrument Corporation, GI Communications Division, 2200 Byberry Rd., Hatboro, PA 19040 Phone (215) 956-6671, Fax (215) 957-8428

1 47 USC 544a and CFR Sec. 76.630

2 Using Asymmetric Digital Subscriber Loop (ADSL) technology, video could be delivered over a DLC infrastructure, but ADSL will not support bit rates needed for HDTV or real time compression of action video (e.g a football game broadcast as its played). .

3 In this analysis, the term "cost" refers to the total installed cost to a network operator, all at market prices.

[4] This hybrid architecture is being actively considered by a number of RBOCs for carriage of analog broadcast services that presently are best supported over an HFC infrastructure. 5 This implies that, for the most part, the cost of supporting IVS subscribers is fixed regardless of the penetration rate and the slight variation in cost due to the need for additional line cards for each IVS subscriber.

6 This notation means the component cost is assumed to be normally distributed with mean $34.4 and a variance of $11.5.

7 No LEC has yet petitioned the FCC for a waiver under CFR 76.630.

8 The cost of this requirement is the cost of a vanilla HFC plant designed to provide only analog broadcast video. Note also that the "typical" scenario referred to is a 1000-home suburban plant of which 70% is aerial.

9 This is the difference in the baseline cost of infrastructure for FTTC versus DLC.