This document examines the problems and potentials that cable televisions have in public service, with a view toward understanding CATV's growth and how that growth relates to the developmental and educational needs of the Appalachian Region. Six developmental districts in Appalachia were chosen for intensive study. A team of consultants was organized to perform the research. Statistics were collected by the questionnaire method. Data gathered indicate that: (1) Cable systems that have been 0-500 subscribers have an average market saturation of 60%; (2) Systems with between 501 and 1,500 subscribers have an average 63% market saturation; (3) Cable systems with 1,501 to 3,500 and above have an average market penetration of 62%. This survey also showed that the CATV operators would be interested in participating in a regional cable television network. Upon completion of the research, an engineering report will be issued. (CK)