applied against the fee, if any, payable pursuant to
paragraphs (ii) through (iv);

(ii) 0.675 of 1 per centum of such gross receipts for the
first distant signal equivalent;

(iii) 0.425 of 1 per centum of such gross receipts for
each of the second, third, and fourth distant signal
equivalents;

(iv) 0.2 of 1 per centum of such gross receipts for the
fifth distant signal equivalent and each additional distant
signal equivalent thereafter; and in computing the amounts
payable under paragraph (ii) through (iv), above, any fraction
of a distant signal equivalent shall be computed at its
fractional value and, in the case of any cable system located
partly within and partly without the local service area of a
primary transmitter, gross receipts shall be limited to those
gross receipts derived from subscribers located without the
local service area of such primary transmitter; and

(C) if the actual gross receipts paid by subscribers to a cable
system for the period covered by the statement for the basic
service of providing secondary transmissions of primary
broadcast transmitters total $80,000 or less, gross receipts of the
cable system for the purpose of this subclause shall be computed
by subtracting from such actual gross receipts the amount by
which $80,000 exceeds such actual gross receipts, except that in
no case shall a cable system's gross receipts be reduced to less
that $3,000. The royalty fee payable under this subclause shall