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Molino: End of Time Warner, Comcast deal has no impact on city's franchise agreement negotiations

By Howard B. Owens

The collapse of a proposed merger of Time Warner Cable and Comcast will have little impact on the city's efforts to negotiate new cable franchise agreements with cable providers, said City Manager Jason Molino.

The proposed merger spurred the city this summer to revive efforts to update a long-expired franchise agreement with Time Warner and form a cable advisory board to help with the process. 

In July, Molino told council members, "Time Warner is noncompliant with some franchise benefits. We haven't had negotiations since 1993. There are a number of improvements that need to be made."

This morning, Molino said the city is still negotiating with Time Warner, not with Comcast, so the fact that Comcast won't be taking over local service has no bearing on those negotiations, Molino said.

"It (the collapse of the deal) doesn't affect those negotiations and it doesn't affect the residents," Molino said.

At the same time, the city has been negotiating a franchise agreement with a new player in town, Empire Access.

Empire has already started delivery of a 100-megabit broadband service to local residents and businesses, but so far can't offer its TV package due to the lack of a franchise agreement with the city.

Asked how those negotiations were going, Molino simply replied, "We're in ongoing negotiations."

Asked now negotiations are going with Time Warner, Molino said, "We've been in negotiations the past few months. We are still trying to resolve some issues."

The old franchise agreement with Time Warner generates about $200,000 a year in revenue for the city.

Franchise agreements are non-exclusive, but are required for cable providers to deliver services to local residents.

"With both providers we're looking to capture the best franchise agreement that will provide the best service to the city and most success for residents," Molino said.

John Roach

Now if Molino would only get the agreement done with Empire so we could have a choice.

Empire is starting to hook up internet and phone service, but cannot offer cable until the City gets the franchise deal done

Apr 24, 2015, 12:26pm Permalink
Mark Potwora

Why does one{TV package}have a franchise fee attached to it?But internet and phone don't...

When Malino states ..The old franchise agreement with Time Warner generates about $200,000 a year in revenue for the city...That 200,000 dollars comes out of the consumers pocket not Time Warner..It is just another tax on city residents..On my bill it is 5.61....$67.32 /year..Do away with it..

Apr 24, 2015, 12:38pm Permalink
C. M. Barons

Any distribution of services that involves the use of public infrastructure, property or easements, wire strung over public highways etc. requires a franchise agreement. The phone company/internet provider (depending on mode of transmission) has a franchise agreement, but it may not specifically address "television programming." I don't believe that video-streaming and video in general is addressed under the same conditions as "cable programming." Satellite services would not require a franchise agreement, because any related hardware is set on private property. The revenue generated from franchise agreements amounts to easements and leases of poles, guide wires and hardware publicly-owned or placed on public property. The agreements usually covered how wires will be hung and where, types of electrical safeguards, clearances, amplifiers and other hardware; what public agencies will receive free drops (schools, hospitals, fire halls, etc.), public access and airing of public meetings, and anything else that the service provider and municipality deem appropriate.

Apr 24, 2015, 2:49pm Permalink
Ed Hartgrove

That makes sense, C.M. Thanks!

At one point in his career, Nikola Tesla was working on an electrical distribution method to eliminate the need for electrical poles, wires, etc. He believed that there was a way to (safely) send huge amounts of electricity through the air, directly to individual properties (homes, industrial buildings, etc.).

A true genius - Nikola Tesla.

Apr 24, 2015, 3:33pm Permalink
C. M. Barons

Mark, not all of the utility poles are city-owned. They may be owned by Verizon, ATT, National Grid, etc. Empire may have entered into a shared use agreement with the owners of the poles within the context of the owner's franchise agreement.

Apr 24, 2015, 5:46pm Permalink

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