The FCC has released the First Quarter 2011 Inflation Adjustment Factor for cable operators using FCC Form 1240 to calculate the maximum permitted basic service tier rate. The Inflation Factor for the First Quarter of 2011 is 2.06 percent (a substantial increase over the Fourth Quarter 2010 inflation factor of 0.41 percent). Please consult the Public Notice to ascertain how this Factor was calculated and how it should be used in conjunction with FCC Form 1240.