marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO
| reply to pnh102
Re: Huh?
Well, on the local level, local municipalities have the burden of proving how much the franchisee has to pay. This normally aggressively pursuing records and essentially delivering a documented invoice to the cable company. The franchisees always submit an initial lower revenue level than they eventually agree to (which any company should be expected to do in the same situation).
I suspect the state is not being nearly as aggressive and just accepting the revenue figures submitted by the franchisees without double checking against subscriber numbers. While franchisees almost always count full revenue when collecting the franchise fee, they will take any feasible deduction when paying the fee.
That could easily result in a shortfall in the new system, though 25% seems awful high.
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