The FCC has released the Fourth Quarter 2012 Inflation Adjustment Factor for cable operators using FCC Form 1240 to calculate the maximum permitted basic service tier rate. The Inflation Factor for the Fourth Quarter of 2012 is 0.98 percent (a substantial decrease from the Third Quarter 2012 inflation factor of 2.65 percent). Please consult the attached Public Notice to ascertain how this Factor was calculated and how it should be used in conjunction with FCC Form 1240.