Comcast, which is taking over Time-Warner Cable if the merger is approved by regulators, has agreed to address the apparent breaches by Time-Warner in its franchise agreement with the City of Batavia.
According to a presentation by City Manager Jason Molino at Monday's City Council meeting, Time-Warner has:
- Failed to pay $16,345 in franchise fees -- state regulators reported Time-Warner withheld the money following an audit of the cable company's revenue and fees from 2006 to 2008;
- Time-Warner has continued to under-report gross revenue, according to what the state says the company should report;
- Failed to operate a community television studio and staff it appropriately.
Molino said Comcast has agreed to address all of those issues in a new franchise agreement once the merger is approved.
Comcast will also agree to provide free Internet service to City Hall and the public schools in the city. Comcast will also pay $2,590 of city's legal fees associated with negotiating the terms of the agreement.
In exchange, the City Council is being asked to approve, before Dec. 8, a resolution in support of the Comcast/Time-Warner merger.
On the franchise fee issue, Molino said Comcast will agree to calculate revenue in accordance with recommendations laid out by state regulators during an audit published in 2011. The increase in gross revenue will mean higher franchise fees paid to the city.
Time-Warner disputed the revenue adjustment and would only pay the past-due franchise fees after tacking on 22 cents per month to each customer's bill in Batavia. The city decided that arrangement as not in the best interest of local customers and had no other legal means to pursue the unpaid fees.
A memo on the topic to council members does not explicitly say Comcast will itself pay the back fees, but says Comcast will address the issue as part of a new franchise agreement, which will be negotiated after the proposed merger is final.
A letter from Phillip Fraga, an attorney representing the city on the merger and franchise agreement, informed Comcast that he would recommend the City Council oppose the merger without the franchise issue being addressed by Comcast.
Molino also shared with city council a letter from 2007 complaining to Time-Warner about the cable company falling out of compliance with its franchise agreement by laying off production employees and removing production equipment from its Batavia office that was supposed to be available for community access programming.
This is another issue Comcast has agreed to address.
The council will be asked to vote on a resolution approving the merger at its first meeting in December.
The best thing to do is let
The best thing to do is let Empire come in to provide internet. Comcast won't offer the same speeds. Cable television is only going to lose subscribers as people learn that they can get all they want online. So the franchise fees that the city hopes to make will constantly decrease.
Is there doubt that Empire
Is there doubt that Empire will be coming? I thought that was a done deal?
There's no "letting Empire"
There's no "letting Empire" come in. They're already coming. I've seen their crews out laying fiber a couple of times now.
Phew.
Phew.
Franchise fees are barriers
Franchise fees are barriers to the free market. They drive the price up and by limiting competition, they reduce your quality of service and product. Simple Fact. Want better choices? stop allowing your government to make your choices for you.
http://reason.org/files/2791c693f550bc6dd8447b17923bfc2a.pdf
There is no guarantee that a
There is no guarantee that a new franchise deal won't stop Empire's progress
That Comcast/Time Warner
That Comcast/Time Warner merger has been put on hold by the FCC --- http://money.cnn.com/2014/10/23/media/comcast-pause/
If I lived somewhere where I could get Empire, I'd get it in a minute.
How would it possibly even
How would it possibly even remotely come close to stopping Empire's progress?
Peter, where do you get this
Peter, where do you get this stuff. No agreement with Comcast has anything to do with Empire coming. As already pointed out, Empire is already here.
Any further word on a time
Any further word on a time frame for home internet service from Empire ? Feel like a kid waiting on Christmas !
the franchise fee is just
the franchise fee is just another tax on the people of batavia..look at your cable bill...time warner,comcast doesn't pay ...We the consumer pay...The fee should be eliminated..Just on more reason to get Direct TV.......
Comcast will also agree to provide free Internet service to City Hall and the public schools in the city..
this is a joke also..all they will do is rate the internet rates on the rest of us...
This deal will do nothing but increase costs to all....
Wow.... It seems that for
Wow.... It seems that for merely catching up on the obligations TW has failed to fulfill, Comcast can continue to ravish Batavian customers, charging horridly overpriced cable/internet prices for poor service?
Oboy....looks like a deal to me!