Title: The State of the States: A Report on Franchising Legislation at the State Level
1The State of the States A Report on Franchising
Legislation at the State Level
- Gerard Lavery Lederer
- March 8, 2007
- Alexandria, Va.
2Program
- State Oversight from an historic perspective
- Status Quo today
- State Laws at a Glance
- Major Trends
- Opinions
3HISTORIC 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
4DECEMBER 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.)
6Where we stand today
7Visit 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
-
8STATES 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)
123 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.
13Issues 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
14Whats 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.
15WARNING
16Do 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
17Tide 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.
18Miller 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