By Larry Jones
September 24, 2007

In a September 14 press release, the Conference of Mayors and other local groups (National League of Cities, National Association of Counties, National Association of Telecommunications Officers and Administrators, Alliance for Communications Democracy and the Alliance for Community Media) criticized the Federal Communications Commission (FCC) for creating “a climate of chaos over video franchising.”

The action was prompted by recent media reports about the FCC’s plans to vote soon on extending rules issued last March to make it easier for new entrants in the video market, to existing cable operators. The Conference and other local groups oppose these rules because they preempt local authority and impose strict limits on the ability of local communities to negotiate franchise agreements in the best interest of local residents. For example, an arbitrary 90-day limit has been placed on local communities to consider and take action on new franchise applications.

Further, local communities are no longer permitted to place certain demands on franchise operators in exchange for granting them the right to operate within their borders. For example they can no longer demand that franchise operators offer free service to municipal and school buildings, or make other commitments to ensure that all areas of the community are served.

According to reports, the FCC is preparing to extend the same relief to existing cable operators that was extended to new entrants. Cable operators, under certain contractual circumstances, would be allowed to back out of their current contracts and renegotiate lower municipal fees and other agreements. This could put at risk public access channels, emergency communication lines, and millions of dollars in franchise fees used by local communities to fund public safety and infrastructure projects. Hundreds of cable franchise agreements across the nation could be voided by the FCC’s decision to extend the rules.

The Conference and other local groups have filed a law suit in the United States Court of Appeals for the Sixth Circuit to overturn the FCC’s video franchise order. The Washington law firm of Arent Fox is representing local groups in this case. For more information go to usmayors.org and see the joint press release “FCC Creates a Climate of Chaos over Video Franchising.”