FCC ruling: cable modems not part of cable service; `interstate information service' would not be included in franchise fees.

Nation's Cities Weekly, April, 2002 by Otero, Juan

The FCC's Local and State Government Advisory Committee had urged the FCC to retain local regulation of Internet services provided by cable-system operators. The committee urged the FCC to classify cable-delivered Internet access as a cable service.

The Federal Communication Commission (FCC) adopted a Declaratory Ruling last month concluding that cable modem service is to be classified as an "interstate information service" as opposed to a "cable service." This ruling will have a significant impact on franchise fee revenue for municipalities across the country.

The definition is preliminary, and open for public comment for the next 60 to 90 days.

Presently, many cities around the country receive up to a 5 percent franchise fee from cable...

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