2005-05-16 Special Called Regular Meeting of La Porte City Council

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MAY 20 '05 15:29 FR 1 TO 8~2818421259 P. 01/04 Cities would lose all in-kind services Certain in-kind benefits-free access to currently required in cable franchises if this cable broadba~d networks and cable TV bill passes. service-would be extended through the earlier of either 2015 or the expiration of the current franchise. The bill would eliminate in"!kind items that drive up the price of cable service - for example, annual cash payments to cities. Cable rates will go up if this bill passes. If anything, they should finally go down as monopoly cable companies are forced to compete. School districts will no longer enjoy free Under sa 408, free cable service to cable TV service if this bill passes. schools would be extended through the earlier of 20 15 or franchise expiration. Even if the phone companies are granted. a This is wrong. Federal law gives the state statewide franchise, cable companies are tbe authority to determine whether still obligated under federal law to obtain franchises are granted at the state or local video franchises. local level. It does not require both. Cities will never realize the full benefits of Common sense would suggest it is in competition in the video market since the phone companies' best interests to quickly phone companies can pick and choose roll out video to as many consumers as whom they serve. possible. sac has stated it plans to reach 50% of its customers within three years. Cable is applying a double standard on this issue-especially when its introduction of digital phone service has been less than ubiquitous. The status quo is better for cities. SB 408 provides a unique opportunity for cities to stabilize-and perhaps even grow-- video franchise revenues. Taking no action wiD lower city revenues as wireless does not pay fees to cities.