Cable Franchise Renewal: What s at Stake for the Communities of the Northern Dakota County Cable Communications Commission?

Transcription

1 Cable Franchise Renewal: What s at Stake for the Communities of the Northern Dakota County Cable Communications Commission?

2 What We Will Cover Today Provide Information to You Cable basics NDC4 & Town Square TV cable facts Evolving cable/telecom landscape Opportunities presented by franchise renewal process Statutory franchise renewal process Your Role in the Needs Assessment Process

3 Cable Basics Local Franchise Agreement is a contract Franchise is non-exclusive Franchise defines the type, level, and quality of service provided by cable operator(s) Local governments must abide by Federal and State laws when conducting franchise renewal process Local Franchise length typically years Public input is a critical part of franchise renewal process Renewal process is central to determining what future services citizens will receive

4 Cable Television Franchise Agreements Cable companies must obtain cable franchise agreements from local government to place many miles of cable lines in the public rights-of-way

5 NDC4 Cable Facts Comcast has been operating under 15-year franchises that are due to expire in March 2015 Each of the NDC4 s 7 members cities have a separate franchise agreement with Comcast Comcast has an estimated 22,000 subscribers in the NDC4 communities Conservative estimate of Comcast cable revenues from the Franchise agreement (excluding Internet and telephone revenues generated by the cable system): 22,000 subscribers x $81 per month/per subscriber x 12 months x 15 years = $320,760,000 Comcast can leverage the cable franchise to earn an additional $300,000,000 in Internet & telephone revenues

6 NDC4 Cable Facts: Value of the Franchise to the City includes items such as: Seven channels for community (PEG) access programming Channels 14,15,16,18,19,20, and 21 I-Net: Dedicated fiber to connect Government and Educational facilities for video and data services 13 Institutions served by fiber optics No traffic or usage fee to Comcast Many thousands of $$ saved by each institution each year

7 All of these community benefits are on the table during franchise renewal NDC4 Cable Facts: PEG access funding support Capital grant $1.7 million over 15 year franchise PEG support fee varies year to year $290,000 in 2011 Free cable connections to City, schools, and community locations 5% Franchise Fee only on cable service Does not include telephone and broadband = $950,000 in % fees go back to cities remainder provides services of NDC4 to 7 cities and to Town Square TV

8 Evolving Cable/Telecom Landscape There are now about 58,000,000 cable subscribers in the United States Technology advances permit delivery of video, Internet, and telephone services Cable operators are eliminating analog delivery of cable services & transitioning to total digital delivery Technology changes are positively impacting cable service offerings and community opportunities U.S. cable systems generate much more revenue now than they did in 1998 (2011: $97.6 billion : $42.1 billion)

9 Evolving Cable/Telecom Landscape Despite losing over 7 million basic subscribers since 2006, U.S. cable industry revenues continue to increase: Basic Subscribers Total Revenue million $71.9 billion ($91.58/sub/month) million $85.3 billion ($111.53/sub/month) million $97.6 billion ($140.23/sub/month) Cable/Telco industry has tried to change rules at the federal level, and now concentrate their efforts at the state level State franchises reduce or eliminate the authority of local governments to negotiate franchises that are responsive to the unique needs of the community

10 Franchise Renewal Presents Opportunities To: Guarantee the provision of state-of-the art communication services throughout the term of a renewal franchise Assure quality customer service Assure support for PEG Access channels and local community uses of the cable system Assure that the cable operator pays adequate rent for commercial use of public property

11 Franchise Renewal Opportunities Embrace the evolution to Community Media Centers -- It s NOT just access TV anymore It s access to multiple means of content distribution Cable, Internet, and other future technologies Identify and implement new services and ways to deliver PEG Access services Partner with and serve nonprofit organizations Franchise renewal process is an opportunity to undertake a communications planning process that can result in improved and affordable community media services for residents, schools, civic and community organizations, and local government

12 Key Elements of Cable Franchise Renewal Precisely defined in Federal & State Law Review performance of cable operator(s) Conduct a community needs assessment Negotiate a new franchise in light of changing technological, economic, and cultural conditions If negotiations reach an impasse, issue an RFRP soliciting a formal proposal

13 Renewal: Past Performance/ Compliance Review Past Performance Review activities will include: Franchise fee/financial review of cable operator Franchise compliance review Technical review of the cable system

14 Needs Assessment Process Needs Assessment activities to identify future community needs and interest will include: Six community focus group workshops On-line Community survey Telephone survey Stakeholder meetings (as needed) Evaluation of current PEG access equipment, facilities, and services Identify & recommend upgrades in facilities and services Public hearing For NDC4 Reports that document the findings of all activities and make recommendations

15 Franchise Renewal Process Desired Outcomes: For NDC4 Renewed franchise that includes the bandwidth capacity and functionality to meet current and future distribution needs Funding and resources necessary to meet community programming (PEG access) equipment, facilities, and services needs Information that will help NDC4/Town Square TV provide services to meet the community communications needs -- now and in the future

16 Review the Focus Group Work Plan & Timeline Review Focus Group schedule Spreading the Word Website postings Social Media (e.g.facebook, Twitter) Mailings & Brochures blasts Personal follow-up phone calls and s Next Steps Preparing for Focus Groups -- How You Can Help!