Localities Push for Cable Franchise Clarity, Mixed-Use Rule Repeal

Urging clarity in FCC rules governing cable operators' compensation for franchise obligations, counsel for state and local interests met with aides to Commissioner Anna Gomez seeking a proceeding that clarifies compensation must be at marginal cost, not fair market value. In docket 05-311 filed Monday, the localities said the agency also should clarify that franchise authorities must pay the marginal cost of using institutional networks, not the construction cost of an institutional network that serves others, such as small businesses and other nonresidential consumers. In addition, they urged repeal of the mixed-use rule as part of proceedings clarifying franchise obligations. Boston, Dallas, Los Angeles County, Hawaii and the National League of Cities were among the interests represented.