§ XII. CABLE SYSTEM UPGRADES AND IMPROVEMENTS.

Latest version.

A.

Company shall complete an upgrade of the Cable System to 860 MHz capacity no later than December 31, 2007. The upgrade will accommodate digital video, additional programming services, an enhanced back-up powering system and will support addressability and/or comparable technology. The upgraded system will have the capacity of at least eighty (80) analog channels and shall have the capacity sufficient to provide Subscribers with a minimum of one-hundred fifty (150) video programming services and shall be capable of supporting HDTV and high-speed cable Internet services.

B.

The upgrade completion schedule is as follows:

45% of the homes in Hobbs shall be completed by December 31, 2005;

75% of the homes in Hobbs shall be completed by December 31, 2006; and

100% of the homes in Hobbs shall be completed by December 31, 2007.

C.

High-speed Internet services will be available in the upgraded areas by January 31, 2006, and HDTV will be available in the upgraded areas by January 31, 2007.

                    
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