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The State of the States: A Report on Franchising Legislation at the State Level

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8 STATES WHERE LEGISLATION DID NOT PASS IN 2006 (In White) ... STATES AT A GLANCE. An Summary Of The Leading Terms Of Laws Enacted Into Law Post September 2005 ... – PowerPoint PPT presentation

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Title: The State of the States: A Report on Franchising Legislation at the State Level


1
The State of the States A Report on Franchising
Legislation at the State Level
  • Gerard Lavery Lederer
  • March 8, 2007
  • Alexandria, Va.

2
Program
  • State Oversight from an historic perspective
  • Status Quo today
  • State Laws at a Glance
  • Major Trends
  • Opinions

3
HISTORIC TABLES FROM NARUC REPORT 10 STATES WITH
SOME STATE LEVEL OVERSIGHT BEFORE SEPT.
2005 Light Blue State Commission has a role -
Dark Blue State level authority resides
elsewhere
4
DECEMBER 2006 - 17 STATES WITH SOME STATE LEVEL
OVERSIGHT 3 MORE CONSTRAIN FRANCHISING
CONDITIONS IN NEW LAW (In Green) Light Blue
State Commission has a role - Dark Blue State
level authority resides elsewhere
5
8 STATES WHERE LEGISLATION DID NOT PASS IN
2006 (In White) (In LA, the Bill actually passed,
but the Governor vetoed it.)
6
Where we stand today

7
Visit MVE Website For State Bill Details
  • FEDERAL AND STATE LEGISLATIVE ACTION ON
    FRANCHISING
  • INTRODUCTION
  • The Bell companies and their allies are mounting
    a massive campaign in three different venues -
    Congress, the state legislatures, and the FCC -
    to eliminate local cable franchising. A Bell
    victory at any of these levels could effectively
    seize local property, deprive local governments
    of needed revenues, leave subscribers unprotected
    in dealing with large cable companies, and end
    public, educational, and governmental access.
    Thus, it is essential that local governments
    oppose the Bell campaign in all three areas.
  • In this ongoing feature we will make available
    key resources for this effort.
  • Congressional Video Franchise Legislation
  • State Video Franchise Legislation
  • FCC Rulemaking on Franchising
  • Related Legislation

8
STATES AT A GLANCE
  • An Summary Of The Leading Terms Of Laws Enacted
    Into Law Post September 2005
  • Red text means best terms to date.

9

10

11
(No Transcript)
12
3 Models
  • Verizon States
  • Match incumbent terms, seek to bind incumbents
    until expired, agree to build out.
  • They then continue to negotiate (approaching 700
    franchises
  • att States
  • Less than incumbent terms and support automatic
    abrogation of contracts. No buildout, and
    technically feasible PEG.
  • They then dont serve, but incumbents all take
    advantage.
  • Qwest States
  • Almost pure ALEC. None have succeeded to date.

13
Issues In Play If you put up the fight.
  • NEED FOR LOCAL FRANCHISE
  • APPLICANT QUALIFICATIONS
  • APPLICATION FORM
  • TREATMENT OF INCUMBENT CABLE PROVIDERS
  • ENFORCEABILITY OF FRANCHISE TERMS
  • EFFORTS TO ADDRESS IPTV
  • (Most often addressed in definition of cable
    service or cable system or obligation for
    providing video.)
  • FRANCHISE FEE
  • GROSS REVENUES
  • Advertising/HS commissions
  • TREATMENT OF SPECIAL TAXES OR FEES ON TELECOMM
    PROVIDERS
  • AUDIT RIGHTS / STATUTE OF LIMITATIONS/ LOCATION
    OF BOOKS/LATE FEES
  • PEG
  • Support
  • Channels
  • Interconnection
  • Uplink to headend
  • Broadcast quality
  • I-NETS
  • Consumer Protection
  • BUILDOUT

14
Whats At Stake?
  • Time-limited franchises that change with needs.
  • Enforcement at local level penalties plus
    potential of revocation of franchise as ultimate
    penalty
  • Buildout, including uniform service offerrigns
    and price, including upgrades.
  • RoW Control and Fees. (5 of a smaller number is
    not being kept whole.)
  • PEG channels defined by local needs connections
    to local PEG facilities support for facilities
    and equipment advanced services.

15
WARNING
  • OPINIONS AHEAD

16
Do RBOCs need relief?
  • Few problems exist with local franchising
  • Locals are not slowing deployment
  • Verizon is nearing 700 franchises, Averaging
    almost a franchise a day.
  • att still hasnt rolled out U-Verse
  • Or Do RBOCs really just need an excuse?
  • To avoid 2/3 of households?
  • To suck the oxygen out of the unbundling
    argument?
  • To delay digital divide debate

17
Tide is Turning in Our Favor
  • 8 states refused to pass legislation last year.
  • At least four states have refused this year.
    (Idaho, Utah, New Mexico Colorado)
  • Verizon is getting what it wants in negotiations.
  • At some point, att has to put up or shut up.
  • FCC Order may serve as a chilling factor.

18
Miller Van Eaton We Assist Local Governments
In AchievingThe Full Benefits Of The
Communications Age For Their Communities
Gerard Lavery Lederer glederer_at_millervaneaton.com
Miller Van Eaton, P.L.L.C. 1155 Connecticut
Avenue, N.W. Suite 1000 Washington, D.C.
20036-4301 Phone 202-785-0600 Fax 202-785-1234 W
ebsite www.millervaneaton.com
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