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<br />AT&T’s IP-enabled video service provided to homes or places of business <br />(including not-for-profit and charitable enterprises) in the City from the <br />provisioning of IP-enabled video service (including but not limited to: recurring <br />monthly charges; installation, disconnection, reconnection, and change-in- <br />service charges; rental and sale of television set or box or other IP Video <br />equipment; per-program and per-channel charges; late fees and processing <br />fees; program guide fees; and home shopping fees and bank at home fees). <br />Gross revenues subject to the foregoing percentage fee shall be net of: (1) <br />discounts, refunds, and other price adjustments that reduce the amount of <br />compensation received by AT&T from such subscribers to IP-enabled video <br />services (except as otherwise provided herein); (2) uncollectibles of such <br />subscribers; (3) amounts billed to such subscribers to recover taxes, fees, or <br />surcharges imposed on AT&T in connection with the provision of such services; <br />and (4) charges for other services that are aggregated or bundled with amounts <br />billed to such subscribers, if AT&T can reasonably identify such charges <br />separately on books and records kept in the regular course of business or by <br />other reasonable means. In addition, AT&T will remit to City five percent (5%) of <br />the pro rata portion of all revenue received by AT&T pursuant to compensation <br />arrangements for advertising derived from the operation of AT&T’s IP-enabled <br />video service within the City. Advertising commissions paid to third parties <br />(excluding any refunds, rebates, or discounts made to advertisers) shall not be <br />netted against advertising revenue included in gross revenue. The pro rata <br />allocation shall be based on the number of subscribers in the City divided by the <br />total number of subscribers in relation to the relevant regional or national <br />compensation arrangement. <br /> <br />(2) City understands that the foregoing fee may be identified as <br />a “City fee” and passed through on subscriber bills by AT&T. AT&T shall remit <br />such fee to the City within thirty (30) days following the quarter in which the <br />gross revenues were collected. <br />4. Public, Educational and Governmental Programming and Support. <br /> <br />(1) Beginning within 180 days after AT&T first offers IP-enabled <br />video services to subscribers in the City, AT&T will provide capacity on its IP- <br />enabled video service for any City Public, Educational and Governmental <br />Programming (PEG) programming transmitted through the public internet. <br /> <br />(2) Further, if any franchised cable operator pays any other <br />cash fees to City related to PEG programming costs, AT&T will make <br />comparable payment to the City in an amount determined by dividing the cable <br />operator’s total annual payments by the number of its subscribers within the City <br />and multiplying by the number of subscribers to AT&T’s IP-enabled video service <br />within the City. The calculation of the amount due from AT&T shall be made as <br />of January 1 of each year beginning on January 1, 2007, using the cable <br /> <br /> <br />