Video providers - question on whether they need cable franchise

Television Digest with Consumer Electronics, March 2, 1998

Video providers don't need cable franchise if they lease channel capacity from common carriers would "create a giant loophole that would effectively end franchising of providers of cable service in many jurisdictions," FCC Local & State Govt. Advisory Committee (LSGAC) said in ex parte filing with Commission.

Group said FCC is expected to decide soon whether video providers such as Entertainment Connections Inc. (ECI), Wedgewood and Telecommunications Services Corp. (TSC) need franchise, although city representatives still were meeting with agency officials last week. LSGAC said decision would allow cable MSOs, for example, to set up separate subsidiaries to own infrastructure and deliver programming, potentially ending need for local franchise since same entity doesn't own both. It said: "Without the ability to require a franchise of these entities... local governments... will lose the authority to require access for public, educational and government programming, require compliance with customer service [and] technical standards, require service to all parts of the community and recover franchise fees for the use of public property."