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Dear Mayor:
Today the Senate
passed S-192 authorizing systemwide cable franchises. This
is now identical to A-804 which is scheduled for a vote
in the Assembly Monday. This means the legislation could
be on the Governor's desk next week.
The League has
testified in support of these bills because they will help
bring competition to the wired cable television market,
increase municipal franchise fees, assure consistent franchise
benefits to municipalities, and assure consumer protection.
Overview of
S-192 and A-804:
- Seeks to speed
up competition in cable television market with a single
system wide franchise for a video delivery system provider
(such as the Verizon plan). The BPU would approve or disapprove
within 45 days of receiving these applications.
- Adjusts municipal
franchise fees to 3.5% which is closer to the national
average (but still below the 5% federal ceiling)
- Establishes
basic franchise commitments, avoiding unnecessary negotiations
and patchwork of benefits that vary by municipality
- New Section
19 permits cable operators to automatically switch to
systemwide franchise without municipal or BPU consent.
The League objected to this as it would cause unnecessary
disruption in abandoning existing commitments to municipalities
without notice or consent.
- Continues
the 2% franchise fee for incumbent cable providers until
the systemwide franchise is capable of serving 60% of
the municipality. The League wants to see this reduced
to the federal "effective competition" threshold
of just one subscriber.
Both S-192
and A-804 include the following requirements of systemwide
franchises:
- Two public,
government, and educational access (PEG) and more if there
is a need.
- Interconnection
between other cable systems in the municipality.
- Free basic
service and Internet service to municipal facilities (schools,
fire, police, library, etc).
- Access equipment
and training.
- Return feed
for PEG use.
- Compliance
with consumer protection requirements pursuant to BPU
regulations.
- Discounts
to eligible subscribers.
If you have any
questions on this contact Assistant Executive Director Michael
J. Darcy at 609-695-3481 extension 16.
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