6th Circuit Partially Grants, Denies Cable LFA Challenge

The FCC rightly deciding noncash cable-related extractions by local franchise authorities count as franchise fees and wrongly went with market value for their worth, which should be assigned equal to the cable operator's marginal cost here. That's per the 6th U.S. Circuit Court of Appeals Wednesday partially denying and partially granting petitions challenging the commission's 2019 LFA order. Deciding were Judges Raymond Kethledge, Richard Griffin and David McKeague, with Kethledge penning the docket 19-4161 decision. Oral argument was in April (see 2104150051). The court said the fee on broadband services levied by Eugene, one of the petitioners, doesn't count as a franchise fee but is preempted. It rejected the challenge to the FCC saying a cable operator can go to court on a request for public, educational and government channel support that's considered excessive. The FCC and counsel for petitioners didn't comment. FCC Commissioner Brendan Carr called the ruling “a good win for every American that wants better, faster and cheaper internet service.” The 6th Circuit decision upheld “key reforms that the 2019 FCC majority put in place,” he said. “Now is the time to double down on those successful infrastructure reforms, which allowed providers to increase speeds, lower consumers' monthly bills for broadband and extend their networks to more Americans.”