CHARLES COUNTY BOARD OF COMMISSIONERS CABLE FRANCHISE RENEWAL AND NEGOTIATIONS PRESENTED BY: FEBRUARY 27, 2019 COHEN LAW GROUP DAN COHEN, PRINCIPAL CBG COMMUNICATIONS, INC. THOMAS G. ROBINSON, PRESIDENT
CABLE FRANCHISE RENEWAL AND NEGOTIATIONS Cable franchise negotiations between a cable company and a “local franchising authority” (i.e. the County) are governed by the federal Cable Communications Policy Act (the “Cable Act”) of 1984 (amended in 1992 and 1996), which is part of the federal Communications Act. Negotiations are also regulated by the Federal Communications Commission (“FCC”), which is the agency charged with interpreting the Cable Act.
CABLE FRANCHISE RENEWAL AND NEGOTIATIONS Pursuant to federal law, cable franchise agreements may cover the following issues, subject to negotiation: • Technical requirements of the cable system • Build-out of the system for cable services subject to a certain number of homes per mile (density and line extension policy) • Right-of-way protections • Customer service standards • Franchise fees • Institutional network (I-Net)
CABLE FRANCHISE RENEWAL AND NEGOTIATIONS Cable franchise agreements may cover the following issues subject to negotiation (continued): • Public, Educational and Governmental (PEG) Channels and PEG Channel enhancements • Financial support for PEG Channels • Complimentary cable services to community facilities • Reporting requirements • Enforcement of cable operator obligations • Length of franchise term
CABLE FRANCHISE RENEWAL AND NEGOTIATIONS Cable franchise agreements may not cover the following issues : • Broadband internet service, which is Title I of the Communications Act, rather than Title VI, which applies to cable service. • Cable programming packages and types of channels on the channel line-up • Cable rates and prices (except for very limited authority over Basic Tier rates, service fees and equipment charges)
CABLE FRANCHISE RENEWAL AND NEGOTIATIONS • Because the Cable Act doesn’t cover broadband internet service, the County has limited leverage in cable franchise negotiations in requiring build-out of unserved or underserved areas for broadband service. • Pursuant to Section 626 of the Cable Act, the County may deny a franchise renewal only for the following reasons: 1. The cable company has failed to substantially comply with the current franchise.
CABLE FRANCHISE RENEWAL AND NEGOTIATIONS Legal reasons for denial of renewal of a franchise (cont.): 2. The quality of the company’s cable service, including signal quality and customer service, has been poor. 3. The company does not have the financial, legal or technical ability to operate a cable system. 4. The company’s proposed terms are not reasonable to meet the County’s future cable-related needs, taking into account the cost of meeting those needs. Inadequate deployment of broadband internet service does not fall under any of these categories.
OPPORTUNITIES TO EXPAND BROADBAND AVAILABILITY • Potential for Federal Grants/Loans • USDA Rural Development Authority administers Telecommunications Loans and Community Connect Grants • Declaration Networks Group, in cooperation with Garrett County, MD during the 2018 funding cycle, received $2,374,598 in grants to develop and operate a wireless broadband system that will cover 1,319 residents and 96 businesses currently unserved by broadband. It will also provide free Wi-Fi to a community center in that area. • USDA requires the area to be “rural” under its guidelines to receive grants • Maryland’s Congressional delegation continues to push the federal government to expand broadband funding programs
OPPORTUNITIES TO EXPAND BROADBAND AVAILABILITY • Potential for State Grants/Loans • Maryland and the Rural Maryland Council’s Broadband Task Force are continuing to explore funding opportunities • A program like the Virginia Telecommunications Initiative (VATI) would be beneficial to have in Maryland • VATI provides last mile funding to provide broadband to unserved areas throughout the state • The State approved $4 Million in 2019 for this purpose
OPPORTUNITIES TO EXPAND BROADBAND AVAILABILITY • Potential for State Grants/Loans (cont.) • Clarke County, VA, partnering with Comcast, has applied for $209,513 in funding (Comcast provides additional funding of $119,463). If approved, Comcast will extend its broadband service to 97 unserved homes and businesses in the White Post Road area of Clarke County.
OPPORTUNITIES TO EXPAND BROADBAND AVAILABILITY • Potential for Public/Private Partnerships • A Tale of Two Counties • Kent County, MD originally partnered with FTS Fiber to develop a fiber optic network to provide broadband throughout the County. • FTS Fiber went out of business and the infrastructure that they built was taken over by Kent FOS (Fiber Optic Systems), which continued to develop the network. It then needed to partner with Cambio, a rural Wi- Fi operator, to light up portions of the network. This network continues to evolve in Kent County.
OPPORTUNITIES TO EXPAND BROADBAND AVAILABILITY • Potential for Public/Private Partnerships • A Tale of Two Counties (cont.) • Cecil County, MD has worked through a number of options to continue to expand broadband. It has done a detailed study of unserved areas. It has reached out to 5 different providers of broadband services in Cecil County, including Comcast, and is now working to develop partnerships to provide services to the unserved areas.
DISCUSSION
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