marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO
| reply to SanJoseNerd
Re: What's wrong?
said by SanJoseNerd  :Where I live, the city government taxes telephone service, but it doesn't regulate SBC nor does SBC have a franchise agreement. You don't need a franchise agreement to levy a tax on SBC. SBC should have a phone franchise agreement. They are normally 30 year terms and automatically renewed with no option to deny though. The FCC retains all regulatory authority so the city cannot regulate SBC through the franchise.
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cmscholloway
join:2005-01-05
Austin, TX
| reply to SanJoseNerd
Since the city can no longer collect the franchise fees (from SBC and soon enough Time Warner), they will lose revenue. Because the franchise fee is collected at the State level, the cities won't be allowed to tax them "twice" for the same service.
In the Texas State legislature, the only way the interests of the people (and in this case Cities) are protected is when one huge corporation is opposed by another huge corporation. It's kind of like when the Eagles play the Redskins in the NFL. You wish there was a way that both teams could lose. Time Warner showed up at the Capital with one less suitcase full of money than SBC. So now we all suffer. |
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SanJoseNerd
Premium
join:2002-07-24
San Jose, CA
| reply to cmscholloway
said by cmscholloway :- The net result of this will be lost revenue to the city government (future revenue from SBC, and existing revenue from the Cable franchises). - Cities, being the who they are, will have to make up for this revenue somehow (raise taxes, fees) or cut services. Being a city dweller, I will now have to pay more taxes (or receive less services), whether I choose to subscribe to IPTV or not. This is EXACTLY the argument SBC uses against Municipal wireless.  Why is there lost revenue? Where I live, the city government taxes telephone service, but it doesn't regulate SBC nor does SBC have a franchise agreement. You don't need a franchise agreement to levy a tax on SBC. |
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