Conference of Mayors, Local Government Associations Defend Cities Franchising Authority
By Ron Thaniel
November 21, 2005
The term “BIT” or “broadband Internet transmission” means the transmission of information in a packet-based protocol or a successor protocol, regardless of the facilities used.
Mayors are invited to submit “video/cable franchising best practices” of their cities to U.S. MAYOR. Contact Public Affairs at 202-293-7330 or send e-mail to info@usmayors.org. The traditional telephone companies entering the video/cable market are asserting that the local franchise process has impeded video competition and that is the reason why Congress needs to act now to nationalize franchising. Call or e-mail Conference Assistant Executive Director Ron Thaniel at 202-861-6711 or rthaniel@usmayors.org for additional details. |
A key House panel on November 9 held a hearing on a proposed Broadband measure known as BITS II that would significantly undermine local government franchising authority.
A coalition of local government entities was represented by Montgomery County (MD) Council member Marilyn Praisner.
The testimony was before the House Subcommittee on Telecommunications and the Internet of the Committee on Energy and Commerce.
In addition to The United States Conference of Mayors, the coalition included the National League of Cities, National Association of Counties, the National Association of Telecommunications officers and advisors and TeleCommUnity.
Responding to a second committee staff draft “BITS II” that would nationalize video franchising, Praisner said, “For three decades, local governments have used cable franchising authority to achieve nearly universal deployment of broadband advanced services and to protect consumers…”
While not perfect, BITS I reflected a non-partisan dialogue with all impacted parties including federal, state, and local governments, industry and consumers. The revised draft BITS II aggressively undermines to local government interest.
In her testimony to the subcommittee, Praisner said, “In this draft, the telephone companies get everything they have asked for including fast track franchising, while avoiding most social obligations – and everyone else loses.”
BITS II Undermines Local Government Franchising Authority
State and local government is not kept whole. BITS II limits rights-of-way fees to the recovery of management costs. Broadband Video franchise fees are limited to 5 percent of subscriber revenue, not 5 percent of all video service related revenues, which is standard today.
“In other words, Telecos not only get out from under franchising, they get subsidized use of local government’s property,” said Praisner.
Mayors, Other Local Elected Officials Urge Congress Not To Preempt Their Franchising Authority
State and local governments’ property rights and authority for managing the nation’s rights-of-way must by kept whole.
Private, for-profit, and quasi-permanent occupancy of the most valuable real estate held by government must be fairly compensated – both through social obligations to the community served and in rental fees.
Also, local telephone company franchises should be comparable to the terms and conditions applied to their cable competitors.
Please visit the website usmayors.org for more information on the Conference’s campaign to protect local government franchising authority.
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