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story category FCC Releases Video Order
Telcos applaud....
(old news - 06:06PM Monday Mar 05 2007)
tags: Video · fcc · TVIP
Though approved last December in a 3-2 partisan vote, the FCC today released their new video franchise reform rules (pdf). Eager to get into the TV business, phone companies lobbied hard for the rules and today applauded the move, calling it a "breakthrough for consumers." The rules are aimed at prohibiting towns and cities from making "unreasonable" demands. Consumer advocates worry the rules simply act to legalize cherry picking (local franchise build out requirements are a major reason many rural areas now have cable service). There will likely be a court battle over these rules sometime this year, as some argue the FCC lacks the authority to make such changes without Congressional approval.

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brooklynman4

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Lawmakers

You still have lawmakers who can get invovled and stop it.

Yowzaaah
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Re: Lawmakers

That's like finding out you have Herpes and saying,"...well you still might get genital warts."

Not so much comforting and a shot at salvation as it is a chance for things to go from bad to REALLY bad.

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Re: Lawmakers

said by Yowzaaah See Profile :

That's like finding out you have Herpes and saying,"...well you still might get genital warts."

Not so much comforting and a shot at salvation as it is a chance for things to go from bad to REALLY bad.
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The FCC news release on these new rules

»hraunfoss.fcc.gov/edocs_public/a···11A1.pdf
The Order addresses several ways by which local franchising authorities are unreasonably refusing to award competitive franchises. These include drawn-out local negotiations with no time limits; unreasonable build-out requirements; unreasonable requests for “in-kind” payments that attempt to subvert the five percent cap on franchise fees; and unreasonable demands with respect to public, educational and government access (or “PEG”).

To eliminate the unreasonable barriers to entry into the cable market, and to encourage investment in broadband facilities, the Commission:

Found that franchising negotiations that extend beyond certain time frames amount to an unreasonable refusal to award a competitive franchise within the meaning of Section 621(a)(1);

Found that requiring an applicant to agree to unreasonable build-out requirements constitutes an unreasonable refusal to award a competitive franchise;

Found that, unless certain specified costs, fees, and other compensation required by local franchising authorities are counted toward the statutory five percent cap on franchise fees, demanding them could result in an unreasonable refusal to award a competitive franchise;

Found that it would be an unreasonable refusal to award a competitive franchise if the local franchising authority denied an application based on a new entrant’s refusal to undertake certain unreasonable obligations relating to public, educational, and governmental (“PEG”) and institutional networks (“I-Nets”); and

Preempted local laws, regulations, and requirements, including local level-playing-field provisions, to the extent they impose greater restrictions on market entry than the rules adopted herein.

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.
Comments by the 2 FCC commissioners that oppose the new rules: »hraunfoss.fcc.gov/edocs_public/a···80A3.pdf
»hraunfoss.fcc.gov/edocs_public/a···80A4.pdf

The actual rule changes are relatively few and can be found in Appendix B of this document: »hraunfoss.fcc.gov/edocs_public/a···80A1.pdf
and that is pages 79 and 80 of the document.
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marigolds
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Re: The FCC news release on these new rules

said by GOLFnSUN See Profile :

The actual rule changes are relatively few and can be found in Appendix B of this document: »hraunfoss.fcc.gov/edocs_public/a···80A1.pdf
and that is pages 79 and 80 of the document.
There are additional findings on existing rules summarized in paragraphs 5 and 65(item 4 will especially cause some problems) and detailed in paragraphs (67, 70, 72, and 73), (82, 89, 90, and 91), (103 and 104), (105, 108, and 109), (110, 114, 115, 119, and 120) and (121 and 122).

Footnote 149 is pretty interesting. Basically, Verizon got caught heavily stretching the truth about unrelated LFA demands. It is especially interesting in light of footnote 352 where AT&T and Verizon refused (after the Tampa Bay incident) to provide details of which LFAs had made unrelated demands.

Paragraphs 105 and 108 are particularly important, since they specify that requests in the community needs assessments count towards the 5% franchise fee cap with no requirement that the requests be fulfilled. This should eventually be challenged in court, but technically this means that a franchise applicant can apply an entire community needs assessment to franchise fees without spending a cent.

119 is a big kicker, because it provides a judicial method of blocking PEG and I-Net support completely even if agreed to in a franchise. Any support for an LEC is essentially voluntary now and cannot be required (see footnote 396).

Paragraph 121 authorizes construction of video facilities if combined with non-video facilities without a franchise as long as video services are not deployed. This will be important in a few ongoing legal disputes.
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Something small...something big

Hitting up the big cable companies for civic dollars outside of what one would consider normal business for a cable TV company is what originally brought this on.

Local towns were abusing their franchise rights to get 'perks' set up and paid for by the cableco. Stories of local parks being built, new city tractors, even a farmer on a Georgia city council getting a load of free fertilizer, it was starting to get out of hand. (go google it)

Local Town USA was using franchising rules as their personal little speed zone and writing large tickets to anyone who wandered through. And naturally they all paid.

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Re: Something small...something big

said by ricep5 See Profile :

a farmer on a Georgia city council getting a load of free fertilizer, it was starting to get out of hand. (go google it)
Do you have some suggested searches?
I could not find the story after several different searches.

I've actually been through a franchise negotiation, and it is very easy for a cable company to get a franchise through if they want to force it. Stopping a franchise is difficult to impossible. The time requirements the FCC has imposed take out the one major barrier from a city, which is dragging out informal negotiations with the threat of the cost of formal negotiations. Now a company can just bite the bullet and jump into formal negotiations and force a 90-day timeline and completely skip informal negotiations.
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systems2000
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Why Does the FCC Need to Get Involved?

If the demands were beyond reasonable requests, the companies always have the option to refuse to build or shut-down their service and notify the customers of why they're not serving the community.

Isn't that what "Free Enterprise" is all about?

Why do we always have to use the Federal Government to solve local community problems?
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Re: Why Does the FCC Need to Get Involved?

Because if you don't get what you want locally go to the Feds and get it. (OT)- (It's basically like the group that is trying to get the Feds to set standards on how much food and drink and crap like that an airline takes or how often the bathrooms should be clean just because JetBlue had a problem.)

And its easier to bitch about it and get someone bigger involved than to do something your own self.

batterup
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Don't worry Vermont, you are going to get it in the end.

This is why Verizon wants out. If they have to run fiber to every maple shack I won't get it in NJ.

quote:
The Vermont Public Service Board (VPSB), for example, filed comments with the FCC emphasizing that it must retain the power to require video providers to roll out services in low density areas, where profitable, and not just allow them to “cherry pick” the most profitable regions.
systems2000
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Re: Don't worry Vermont, you are going to get it in the end.

ROI's are very important to a company, it's what stock holders demand. I don't have a problem with companies having some sort of ROI, it's just when they want the ROI to be less than five or ten years for large, long-term, and permanent projects.

It's a shame that corporations only look at the next quarter or two of their stock worth that has become a major issue with the World Economy. Look at what's happened with Oil.
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Re: Don't worry Vermont, you are going to get it in the end.

said by systems2000 See Profile :

ROI's are very important to a company, it's what stock holders demand. I don't have a problem with companies having some sort of ROI, it's just when they want the ROI to be less than five or ten years for large, long-term, and permanent projects.
Rural markets are like the "long tail" of video content. All that's needed are new business models to exploit that. I only wish I could think of some.
Forums » FCC Releases Video Order


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