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story category FCC Approves Franchise Reform in Partisan Vote
Municipalities have 90 days to act, other restrictions imposed
(old news - 06:17PM Wednesday Dec 20 2006)
tags: Video · competition · fcc
The FCC today voted 3-2 along partisan lines to approve a plan that revamps the video franchising process to make it easier for the telcos to offer TV services. Among a number of restrictions, the new franchising guidelines require municipalities to act on new applications from competitors with access to local rights-of-way within 90 days and within 180 days for other new competitors. Conservative FCC members say the changes aim to thwart "unreasonable build-out requirements" by municipalities.

The two Democratic FCC commissioners criticized the measure for its erosion of local authority and expressed concern that the new provisions lack adequate consumer protections. They also doubted the degree of difficulty the existing system presents, since Verizon has admitted Fios deployment has gone well under under the existing system, and AT&T has been ignoring the franchise system altogether -- suing town and cities that challenge them.

The telcos had been lobbying federal lawmakers hard in the hopes of passing a nationwide video franchise system (one-stop lobbying, critics suggest), but their push bottomed out over network neutrality concerns. They've had better luck lobbying state lawmakers (to pass statewide franchises) and appealing to the FCC's Martin, who recently suggested that local franchises were responsible for high cable rates.

There's been some question over whether the FCC has the authority to make these changes, so you'll likely see this move challenged in court. The news release and commentary from each commissioner are available at the FCC website, though the actual changes themselves have yet to be posted.

Related:
  1. FCC Says Video Competition A-OK
  2. Milwaukee Sues AT&T For Ignoring Franchising Process
  3. Dems Eye FCC Decisions
  4. Cities Say FCC Dishonest About Franchise Issues
  5. Fighting The FCC on Video Franchise Reform
  6. U-Verse TV Gets More Expensive February 1
  7. 941 Million Living Room Internet TV Viewers By 2013
  8. CES: Dish, Verizon Showcase Remote DVRs
Forums » FCC Approves Franchise Reform in Partisan Vote
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marigolds
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Can anyone find the order?

Has anyone been able to find the text of the order?
Based on the various comments, is sounds as if they term "unreasonable" still remains undefined. I am particularly interested in how an unreasonable buildout schedule was defined.

TK Junk Mail
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Re: Can anyone find the order?

said by marigolds See Profile :

Has anyone been able to find the text of the order?
The only things published so far on the FCC web site are the Press Release & the statements by the Commissioners. The actual order may not show up for awhile yet.
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Old_Grouch
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I have not read the order, I suspect you will remain interested but not satisfied.

If comments by the individual Commissioners are any indication, the ones made by the Chairman should be most telling for you.

If you read slowly, you'll note that he believes it would have been appropriate to include examples of reasonable requirements. And, he gave an example that would allow a petitioner at least 10 years and likely more ... again, if you read slowly.

The end of Chairman Martin's statement said:

"Addressing build-out requirements was particularly difficult. This item seeks to strike
a balance between encouraging as widespread deployment of broadband as possible while
not deterring entry altogether. I believed it would have been appropriate to provide examples
of build-out requirements that would be reasonable in addition to illustrating those that could
not be.1

1 For example, I would have been willing to find that it would seem reasonable for an LFA to require that,
beginning five years after the effective date of a new entrant’s franchise and every 3 years thereafter, if in the
portion of the franchise area where the new entrant has chosen to offer cable service at least 15 percent of the
households subscribe to such service, the new entrant increase by 20 percent the households in the franchise area to which the new entrant offers cable service by the beginning of the next 3-year interval, until the new
entrant is capable of providing cable service to all households in the franchise area."


If you are curious, the statements are found HERE under Headlines .
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marigolds
Gainfully employed, finally
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join:2002-05-13
Saint Louis, MO

Re: Can anyone find the order?

Wow, against that type of schedule, a new entrant starting at 20% coverage (which is a high coverage for a new entrant) could take 23 years to build out half a system even if they hit 50%+ penetration every year, 32 years to build out 90% of the system.

Anoni

@swbell.net

The only time I wax conservative...

...is here -- I'm tired of greedy 'lil 'burbs holding up progress. Yeah baby.

jslik
That just happened
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Re: The only time I wax conservative...

said by Anoni :

...is here -- I'm tired of greedy 'lil 'burbs holding up progress. Yeah baby.
If you truly 'wax conservative' you'd be mad at this decision as another federal government preemption of local authority.

The 10th Amendment was written for a reason.

Albatross

join:2000-12-22
Dallas, TX

Re: The only time I wax conservative...

So was the commerce clause and the delivery of data (including a dtv signal) that originates in CA and is piped to Nebraska (or anywhere else) is obviously interstate commerce.

The 10th amendment is inapplicable since the power was already granted to congress.

The cable companies should have thought of this approach years ago. Don't fault the telecoms for pursuing an efficient approach to avoid municipality power-grabs.

jslik
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Re: The only time I wax conservative...

Local control of the local right-of-way is a power grab?

Albatross

join:2000-12-22
Dallas, TX

Re: The only time I wax conservative...

Once the ROW has been granted (which it has to the telecoms since they are running the data over existing cables) to require some sort of service to the city, e.g., filming the city's arrival of santa clause, is certainly a power grab.

How is this not interference in interstate commerce?

jslik
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edit:
December 21st, @12:43AM

Re: The only time I wax conservative...

AT&T and Verizon are stringing all sorts of new infrastructure in the ROW.

Where is the precedence for existing infrastructure to give unlimited access for anything new for all time, especially service which is under a different title in the Communication Act?

Who's going to pay the cities to defend themselves from the cable companies who will sue the city violating the Cable Act by not granting a franchise?
moonpuppy

join:2000-08-21
Glen Burnie, MD
·Verizon Online DSL

said by Anoni :

...is here -- I'm tired of greedy 'lil 'burbs holding up progress. Yeah baby.
Yeah, until they don't deploy in your area.
karlmarx

join:2006-09-18
Nashua, NH
·Fairpoint Communic..

Expect this to be overturned

Come jan, the dems will most definitely overturn this godawful ruling. The local communities have every right to demand the telco's play by the same rules the cableco's do.
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edit:
December 20th, @04:48PM

Re: Expect this to be overturned

said by karlmarx See Profile :

Come jan, the dems will most definitely overturn this godawful ruling.
Even if the Dems can pass new laws on the subject, there is little likelihood they can override a Bush veto. And even if so inclined, this would not be a Dem priority in a new Congress and it would be many months at a minimum before new laws would be crafted. They will be busier addressing a larger military and Iraq issues. TV will be far down the list.

Much more likely that it would go to the courts where it could take years to resolve.
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cwh

join:2006-05-14
San Antonio, TX

said by karlmarx See Profile :

Come jan, the dems will most definitely overturn this godawful ruling. The local communities have every right to demand the telco's play by the same rules the cableco's do.
The current franchise agreement only insure that cable stays a monopoly. Build requirements keep small investors completely out of play and greatly slow the big boys. This is good news for consumers.
majortom1029

join:2006-10-19
Lindenhurst, NY

Re: Expect this to be overturned

How do the current ones keep cable a monopoly. So making them have a certain amount of the town wired by a certain date, or have public access channels helps keep cable a monopoly? wow
cwh

join:2006-05-14
San Antonio, TX

Re: Expect this to be overturned

said by majortom1029 See Profile :

How do the current ones keep cable a monopoly. So making them have a certain amount of the town wired by a certain date, or have public access channels helps keep cable a monopoly? wow
Build out requirement rules both time and area will greatly discourage investors against competing with a incumbent cable company. This is what protects the cable company from competition. Is is one thing to have a build out rules when there is no competition but it is quite a different rule when an incumbent exists.
majortom1029

join:2006-10-19
Lindenhurst, NY

Re: Expect this to be overturned

Still , how does that protect the monopoly. Those rules protect the people in the not as rich areas so that the whole town will get wired. ! village out of a whole town is not competition.
cwh

join:2006-05-14
San Antonio, TX


edit:
December 20th, @11:25PM

Re: Expect this to be overturned

said by majortom1029 See Profile :

Still , how does that protect the monopoly. Those rules protect the people in the not as rich areas so that the whole town will get wired. ! village out of a whole town is not competition.
How does it protect them? It discourages investors from creating competition. It makes the build out risk too high for investors.

In simple terms, how much money are investors willing to spend to possibly take 15-20% market share away from the incumbent. The franchise agreement keeps the bar high and investors away. It is that simple.

But answer this, how well are the poor(if you call poor being able to afford cable tv poor)served by living under monopoly conditions?

TK Junk Mail
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Margate City, NJ
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Re: Expect this to be overturned

said by cwh See Profile :

[
In simple terms, how much money are investors willing to spend to possibly take 15-20% market share away from the incumbent. The franchise agreement keeps the bar high and investors away. It is that simple.
And demands that new franchisees do a full build-out in 3 to 5 yrs when the incumbent cable company took a couple decades to do so is ludicrous and the reason for the FCC rules.
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moonpuppy

join:2000-08-21
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Re: Expect this to be overturned

said by TK Junk Mail See Profile :

And demands that new franchisees do a full build-out in 3 to 5 yrs when the incumbent cable company took a couple decades to do so is ludicrous and the reason for the FCC rules.
Wrong. It has been done before.

Baltimore City signed a franchise agreement in 1984 with United Cable and was required to have 100% build-out in 4 years. They came close save for a few pockets here and there.

Now, if you think this will spur innovation, again I bring out Baltimore City. They just recently got cable modem service 3 years ago (16 years after they first started.)

So the 3 to 5 year build out rules are not ludicrous but very obtainable.

CableTool
Poorly Representing MYSELF.
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said by cwh See Profile :

But answer this, how well are the poor(if you call poor being able to afford cable tv poor)served by living under monopoly conditions?
Extremely well, because the incumbant cable provider was held to build out contracts and provided them with cable as they did the rest of the town.

Now, statewide franchise..whole different ball game. No one is running fiber past Cabrini Green. But there is cable there.
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Fatal Vector

join:2005-11-26

"Come jan, the dems will most definitely overturn this godawful ruling. The local communities have every right to demand the telco's play by the same rules the cableco's do."

If memory serves (and it usually does) The cable franchise thing was the result of an FCC order creating it many moons ago. Which means that the FCC has the authority to modify the terms and abilities of local governments in implementing franchises.

TK Junk Mail
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edit:
December 20th, @04:56PM

New rulings don't apply to statewide franchise areas

One thing I found interesting is that the new rules DO NOT apply to places where statewide franchising laws have been passed, like Texas, California, & NJ among others. What I take from that is that the FCC(at least the 3 Republicans) see the local franchise authorities as the biggest roadblock to telco video rollouts and most in need of FCC oversight.
»hraunfoss.fcc.gov/edocs_public/a···11A1.pdf
The Commission concluded that although the record allows it to determine generally what constitutes an “unreasonable refusal to award an additional competitive franchise” at the local level, the Commission does not have sufficient information to make such determinations with respect to franchising decisions made at the state level or in compliance with state statutory directives, such as statewide franchising decisions. As a result, the Order addresses only decisions made by county- or municipal-level franchising authorities.
Link to story with comments by telco and cable representatives:
»news.tmcnet.com/news/it/-fcc-cab···8472.htm

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nasadude

join:2001-10-05
Rockville, MD
·Comcast

Re: New rulings don't apply to statewide franchise areas

said by TK Junk Mail See Profile :

... What I take from that is that the FCC(at least the 3 Republicans) see the local franchise authorities as the biggest roadblock to telco video rollouts and most in need of FCC oversight.
You are certainly entitled to that take away.

However, I doubt the 3 republican commissioners see it that way at all - what they see is a big business with lots of lobbying clout that wants something done, so they did it. There doesn't appear to be anything more than anecdotal evidence about the "roadblocks" that local authorities are to the franchise process - an executive at Verizon was even quoted as saying this process wasn't slowing them down.

My take away is that the republican commissioners have a reflexive, knee jerk reaction to grant anything big business wants, without any regard to the wants or needs of consumers.

They must have really agonized about the cablecos opposition to this, but I am sure they consoled themselves with the thought that they are deregulating and all deregulation is good.

TK Junk Mail
Go ahead, make my day
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Re: New rulings don't apply to statewide franchise areas

said by nasadude See Profile :

an executive at Verizon was even quoted as saying this process wasn't slowing them down.
The Verizon response today was a little different:
»news.tmcnet.com/news/it/-fcc-cab···8472.htm
Responding to the FCC ruling, Susanne Guyer, Verizon (News - Alert) senior vice president for federal regulatory affairs, issued the following statement:

“Today’s action will fast-forward the delivery of new choices, lower prices and better services to consumers. The FCC is standing up for consumers who are tired of skyrocketing cable bills and want greater choice in service providers and programming. Verizon has an aggressive schedule to deploy FiOS TV. This order will enable us to reach agreements with local franchise authorities more quickly so we can deliver the benefits of competition to consumers faster. The FCC has taken strong steps to increase consumer choice and spur investment in broadband and video deployment.”

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jslik
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Re: New rulings don't apply to statewide franchise areas

said by TK Junk Mail See Profile :

The Verizon response today was a little different:
The quote referenced from Verizon in September (linked in the post):

"Franchising is not holding us back," said Virginia Ruesterholz, president of Verizon Telecom. "I really don’t see that as a necessity, to have nationwide relief on that."
...and people wonder why folks like me don't believe anything coming from the telcos?
SD6

join:2005-03-26

said by TK Junk Mail See Profile :

said by nasadude See Profile :

an executive at Verizon was even quoted as saying this process wasn't slowing them down.
The Verizon response today was a little different:
»news.tmcnet.com/news/it/-fcc-cab···8472.htm
Responding to the FCC ruling, Susanne Guyer, Verizon (News - Alert) senior vice president for federal regulatory affairs, issued the following statement:

“Today’s action will fast-forward the delivery of new choices, lower prices and better services to consumers. The FCC is standing up for consumers who are tired of skyrocketing cable bills and want greater choice in service providers and programming. Verizon has an aggressive schedule to deploy FiOS TV. This order will enable us to reach agreements with local franchise authorities more quickly so we can deliver the benefits of competition to consumers faster. The FCC has taken strong steps to increase consumer choice and spur investment in broadband and video deployment.”
Sorry, Verizon never said that the current franchising wasn't slowing them down. They said it wasn't holding them back.

jslik
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Re: New rulings don't apply to statewide franchise areas

said by SD6 See Profile :

Sorry, Verizon never said that the current franchising wasn't slowing them down. They said it wasn't holding them back.
Huh? Please explain the difference between 'slowing them down' and 'holding them back'. Also, why did she specifically say national franchising relief wasn't necessary?
RJ44

join:2001-10-19
Nashville, TN

Re: New rulings don't apply to statewide franchise areas

said by jslik See Profile :

said by SD6 See Profile :

Sorry, Verizon never said that the current franchising wasn't slowing them down. They said it wasn't holding them back.
Huh? Please explain the difference between 'slowing them down' and 'holding them back'. Also, why did she specifically say national franchising relief wasn't necessary?
Is it really so hard to grasp the concept that Verizon said they could do ok under the present rules, then said they could do even better now that the rules are more lenient? How hard was it in the first place to figure out that having to deal with thousands of municipalities is less efficient than dealing with 50 states or one national franchise, regardless of what Verizon was telling their investors?

jslik
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Re: New rulings don't apply to statewide franchise areas

Then quite frankly, she is plain dumb to state so clearly that local franchising isn't a problem, regardless of the audience.

If they can 'do ok' under present law, and this keep local governments in control, how is that bad?

Why is Verizon's (and the other telcos) lack of planning in the 10 years since the '96 Act now local government's problem?
SD6

join:2005-03-26

said by RJ44 See Profile :

said by jslik See Profile :

said by SD6 See Profile :

Sorry, Verizon never said that the current franchising wasn't slowing them down. They said it wasn't holding them back.
Huh? Please explain the difference between 'slowing them down' and 'holding them back'. Also, why did she specifically say national franchising relief wasn't necessary?
Is it really so hard to grasp the concept that Verizon said they could do ok under the present rules, then said they could do even better now that the rules are more lenient? How hard was it in the first place to figure out that having to deal with thousands of municipalities is less efficient than dealing with 50 states or one national franchise, regardless of what Verizon was telling their investors?
Yea, it really is not that hard to understand that Verizon said it was not going to hold back from deploying FIOS even if there is no national franchising law.Here is the link:

»telephonyonline.com/home/news/ve···_092706/

National franchising, of course, is different than FCC reforms of the local franchising process, and Verizon is not being inconsistent. Somehow the original quote of "not holding us back" and national franchising is "not a necessity" has been transformed to "Verizon has admitted Fios deployment has gone well under under the existing system" in this news item.

jslik
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Maybe, maybe not. You could read the 'not have sufficient information' as saying that the statewide franchise system(s) in place are so new that their impact is not known.

This is a really crappy decision by the FCC, not so much as what it says or does not say, but rather the FCC doesn't have this kind of authority to basically amend Title 47 of federal law. Like it or not, that's Congress' role.

As stated before, this is going to court.

TScheisskopf
World News Trust

join:2005-02-13
Belvidere, NJ
·Sprint Broadband D..

Interesting.

I thought that more local control, in everything, was a hallmark conservative argument. That huge mandates from Washington were A Bad Thing. That "The People Know Best".

I guess all that is now suspect, in the face of increased corporate profits. They know from whom the campaign contribution blessings flow, apparently. Intimately, too.

See 18 replies to this post

texans20
Johama McBama 08
Premium
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Texas!
clubs:

Great News!

This is good news for many reasons:

1. If I build a fiber network, I shouldn't have to share my network.

2. Why should I be forced to say network all the city's stoplights to monitor traffic as part of my agreement to offer service. If I open a pizza place, I'm not forced to offer free pizza to the mayor.

3. It will increase competition and lower costs.

See 10 replies to this post

Placebo
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join:2005-12-14
Huntley, IL
·Comcast

Torn!

I'm a social and fiscal conservative. That being said, I recognize the need for, and am supportive of, responsible regulation in the telco/cable arena. I'm not a lawyer. I don't lay (lie?) awake in bed reading FCC reports.

The consumer in me wants: a statewide franchise in Illinois (NEVER going to happen), IPTV, a 25meg/25meg symmetric pipe, HD VOD movies on the same day as theater release, etc...

The conservative in me sees the push for statewide franchises as an intrusion on the rights of municipalities. Does my state representative or state senator know the minute details about my hometown cable franchise? Probably not. As long as I have a village/city council that I have confidence in, I'll continue to push for local franchises.

What if I lived on the edge of town and the franchise agreement with the cable company demanded that the cable company offer me service? Who do you think would be better prepared to fight for me if there was a disagreement between myself and the cable company? There is no doubt that my local govt. would respond faster than my state govt.

I'm all for the expansion of telco video services. What I don't understand is why all of a sudden the FCC thinks the local franchise system is inefficient. I know that it's all about money, so don't think I'm naive. I just wish politicians would realize how stupid they make themselves look.

guest77



Re: Torn!

The Constitution reserves power not specifically granted the feds to the states. On the other hand, local government's right to even exist is at the whim of the state. There is a historical argument for "state's rights" not for local control for much of anything.

Michieru
zzz zzz zzz
Premium
join:2005-01-28
Miami, FL
·Speakeasy

!

I think this whole discussion will sooner or later break down into Federalist and anti-Federalist type of scenario.

Those who want a nationwide franchise system while those who want state and city franchise systems. But that's just my 0.02 cents

brooklynman4

join:2004-09-07
Brooklyn, NY

Re: !

What this means to me is that we gonna be seeing prices skyrocket all these companies work together here the poor stay poor and the rich get richer. Honestly they should have left it alone.

RR Conductor
RailRoadDude
Premium
join:2002-04-02
Redwood Valley, CA

Okay then....

"unreasonable build-out requirements"

Oh, like actually providing service to more than 1% of the population? Or getting services in months and years and not decades? Yeah, totally unreasonable there...I smell Gwbuh in this somewhere.
qworster

join:2001-11-25
Los Angeles, CA
·Brand X Internet
·RoadRunner Cable
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The Rebublican FCC BENDS OVER to the telcos over and over!

The FCC bends over whenever the telcos burp! Look at how they interpreted the telecom Act ofg '96 (which was supposed to serve for the next 50 years!) They claimed that the competitive items the telcos had to abide for (in return for the keys to the cookie jar a'la wide open long distance services) only applied to the copper plant in place as of 1996! In other words, the telcos get to HAVE their monopoly again!

BEND OVER FAR FCC...THIS ONE ISN'T GREASED!!!

XcceLL

join:2004-03-16
Jefferson, GA

Give consumers more ways to get entertainment.

The way I see it is the more competition there is the more choice I will have for entertainment.

xerxes3642

join:2006-02-24
Saint Charles, MO
·Charter Pipeline

business licenses are managed local

as well, why shouldn't the cable and telco's be managed local. Franchises don't guarantee a monopoly. anyone can start an operation if they can meet the requirements... Since it is way too expensive for anyone to actually compete, you need to make sure the monopoly behind is regulated in some way.
BF69

join:2004-07-28
Camden, TN

Lots of local authorities suck

Most don't know anything about anything thus cable companies don't aren't require to do crap because the local authorities are run by ignornat people. Or the restraints are too much because of said ignorance. "Local control" of things like this and schools sounds great if you are in a big city where there is a huge pool of candidates to find qualified individuals from. But not in tiny little backwaters were all the smart students with potential successful futures go off to college and never come back. The few that would be qualified never get on these boards because they don't know the right people. That the way small towns are run. That's why they stay small and backwards.

CableTool
Poorly Representing MYSELF.
Premium
join:2004-11-12

Re: Lots of local authorities suck

That being said with a statewide franchise what are the chances the small towns will ever see FIOS?
Since they can pick wherever they want to go and even THEN not even build all of it out it limits GREATLY who will really get the service and competition.
All this did was speed up how fast Verizon will alienate communitites.
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marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO

How responsive are the states and feds?

Since this is a push to create more state and federal control of franchising....

Does anyone have any examples of receiving relief against franchisee actions from the state or federal level that was initiated by a consumer and not by a municipality?

xerxes3642

join:2006-02-24
Saint Charles, MO

links for more info

»www.alliancecm.org

»www.natoa.org
Forums » FCC Approves Franchise Reform in Partisan Vote


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