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<br />MAY 2121 '1215 15:3121 FR <br /> <br />1 TO 8-2818421259 <br /> <br />P.12l2/1214 <br /> <br />,,I <br /> <br />The real story about SB 408 and its impact on Texas cities and schools <br /> <br />While some would have cities and schools believe that SB 408 will harm them financially <br />and deprive them of important benefits, the reality is just the opposite. <br /> <br />It's time to set the record straight. <br /> <br />The Cable Lobby Spin: Tbe Real Story: <br />Cities will lose municipal franchise fees Under SB 408, both incumbent cable <br />under SB 408, resulting in a net revenue providers and new entrants such as SBe, <br />loss. Grande and VerizoD will pay S percent <br /> of their gross revenues in video franchise <br /> fees to cities. <br /> Because the fee payment requirements are <br /> comparable, cities' revenues will remain <br /> stable when cable providers lose video <br /> customers to phone companies. By <br /> contrast, cities today lose revenue when <br /> consumers migrate to cable's only <br /> competitor-sateWte TV-which does <br /> not pay franchise fees. <br /> Importantly, some cities could actually <br /> realize revenue gains under SB 408. <br /> While federal law permits cities to assess <br /> cable providers up to 5 percent of their <br /> gross receipts. not all cities collect the full <br /> amount allowed Under SB 408. a 5 <br /> percent fee payment would be mandatory. <br />Cities would lose control over their right- Cities would retain all right-of-way <br />of-way if this bill passes. police powers they enjoy today. 5B 408 <br /> would merely ensure equal access to the <br /> right-of-way for all video providers. <br />Cities will lose public access channels if SB 408 preserves public channels at <br />this bill passes. current levels. Availability would decline <br /> only if the city SlODS using a channel. <br />