FCC Cable coalition Notice of Inquiry
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MEMORANDUM
November 28, 2006
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TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: FCC Notice of Inquiry
Cable TV Coordinator Craig Nowack recommends City Council approval for the City of
Dubuque to join a coalition of municipalities in responding to a Federal Communications
Commission Notice of Inquiry on a number of issues affecting local communities,
including the effect to local franchising on video competition, and to authorize up to
$5,000 from the Cable TV budget for that purpose.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen-
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Craig Nowack, Cable TV Coordinator
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MEMORANDUM
TO:
Michael C. Van Milligen, City Manager
FROM:
Craig Nowack, Cable TV Coordinator
DATE:
November 27,2006
RE:
FCC Notice of Inquiry
INTRODUCTION
The purpose of this memorandum is to recommend that the City of Dubuque join a
coalition of municipalities in responding to a Federal Communications Commission
Notice of Inquiry (NOI) on a number of issues affecting local communities, including the
effect of local franchising on video competition.
BACKGROUND
In a recent e-mail, Miller and Van Eaton attorney Rick Ellrod detailed an FCC Notice of
Inquiry and three areas on which it calls for comments that might be of interest to local
communities:
. Franchising and other local and state regulations and their effect on competition.
. PEG programming.
. Local Video-On-Demand content.
In the same e-mail Mr. Ellrod notes that the Bell companies most likely will take this as
an opportunity to attack local franchising and he feels it is important that local
communities have their side heard. He offers several points a coalition of municipalities
might make:
. Describe the success stories of competitive local franchises: e.g., the long-time
overbuild in Anne Arundel County, MD; RCN franchises in Montgomery County,
MD, DC, and elsewhere; and Verizon franchises granted in numerous
jurisdictions in the Washington area.
. Make clear that sensible build-out requirements worked out case by case have
resulted in wide availability of cable service that is not incompatible with financial
success for cable companies.
. Point out that state franchising, where passed, has had very little effect in
facilitating telco entry into cable, but has only resulted in reducing public benefits
provided by incumbents who have been permitted to escape their existing
contracts.
. Point out that industry filings in the record still have failed to identify any cases
where local franchising has delayed competitive entry.
. Emphasize the value of PEG programming and encourage the FCC to see that
new ways of delivering it, such as Video-On-Demand, should be something that
local communities can negotiate.
Mr. Ellrod estimates that filing initial and reply comments will cost the coalition
approximately $30,000. No matter the final number of the coalition, he indicated it is
possible to cap the City's financial involvement at $5,000. The Cable TV Legal Services
account currently has a balance of $15,820, although we have not seen any bills for
work to defend the franchise fee lawsuit.
RECOMMENDED ACTION
I respectfully request that my recommendation to join the coalition being represented by
Miller and Van Eaton and to authorize up to $5,000 from the Cable TV budget for that
purpose be forwarded to the City Council to receive, file, and approve.
CN
Cc: Randy Gehl, Public Information Officer
Barry Lindahl, City Attorney