| The
Role of Local Governments
Local governments have significant control over cable franchises,
which is their best opportunity to obtain benefits and to
assert their rights with their cable company. Municipal
officials act effectively as the landlords of their cable
company. The cable operator utilizes the municipality’s
public rights-of-way to operate its cable system and municipal
officials manage those rights-of-way as a public trust. Local
governments deserve a fair return for the cable operator’s
use of those public properties.
Cable Franchise Renewal
There are significant benefits available to municipalities
in cable franchise renewal. The key to receiving
these benefits is to know the law and regulations relating
to each benefit and to negotiate firmly to obtain them from
the cable operator. The following is a list of
eight (8) of the more important potential benefits that the
Cohen Law Group negotiates on behalf of its clients:
- Increased Franchise Fee Revenue.
- Upgrade of the Cable System to provide Advanced Services.
- Comprehensive Customer Service Standards.
- Free Telecommunications Services for Community Facilities.
- Installation of an Public, Educational and Governmental
("PEG") Channels for Municipal Programming.
- Legal Safeguards to Protect the Municipality’s Rights-of-Way.
- Strict Enforcement Tools to Ensure Cable Operator.
- Shorter Length of the Franchise Term.
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Franchise
Fee Reviews
After a cable franchise agreement has been completed, it is
important to keep the cable operator accountable by performing
a franchise fee review on a periodic basis. A franchise
fee review involves the review of the cable operator’s
financial records to determine whether the operator has paid
accurate franchise fee revenue to the municipality. These
franchise fee reviews often result in the identification of
underpayments to the municipality. If so, the Cohen
Law Group is aggressive in requiring the cable operator to
pay the underpaid amount plus any applicable penalties and
interest.
Cable Compliance Review
The Cohen Law Group also assists local governments in performing
a full cable compliance review. This includes a
review of all of the cable operator’s major obligations,
including franchise fee payments, customer service standards,
free telecommunications services, public, educational, and
governmental ("PEG") obligations, etc. The
Cohen Law Group has developed a “tool kit” for
performing cable compliance reviews in an effective and efficient
manner. Such reviews not only ensure that the cable
operator will comply with its obligations, but also sends
a strong message to the cable operator that the municipality
will be vigilant in enforcing its obligations.
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