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Economic redlining or “cherry picking” was identified as a concern through the public <br />hearing process. As the Report noted, cherry picking is prohibited by the Federal Cable <br />Act. See 47 U.S.C. § 541(a)(3). The proposed CenturyLink franchise prohibits cherry <br />picking, identical to the Comcast franchise. To ensure compliance, CenturyLink has an <br />additional $500 per day penalty/liquidated damage for violating the build-out and <br />economic redlining provisions of the Franchise. <br /> <br />The Report also described the State’s level playing field statute, which requires <br />competitive cable franchises not to be more favorable or less burdensome than an <br />incumbent’s franchise as it relates to franchise fees, support of public, educational, and <br />governmental access television and the area served. CenturyLink is required to pay a <br />franchise fee of 5% of its Gross Revenues (Identical to Comcast Franchise). The <br />Franchise Area is the entire city (Identical to Comcast Franchise). The Public, <br />Educational, and Governmental (“PEG”) Access Requirements of the CenturyLink <br />franchise meet, and in places exceed, Comcast’s franchise commitments. <br /> <br />The CenturyLink PEG commitments are summarized as follows: <br /> Number of Access Channels. CenturyLink will provide 16 Access <br />Channels (greater overall number of Access Channels than Comcast). <br /> Format of Access Channels. CenturyLink will provide all 16 Access <br />Channels in HD if the Commission sends them in HD format (Comcast <br />will provide one Access Channels in HD over time). <br /> Electronic Programming Guide. CenturyLink will have similar <br />requirement as Comcast. <br /> Channel Placement. CenturyLink will make all Access Channels <br />accessible at Channel 15 through the “North Suburban Mosaic.” The <br />Access Channels will be physically located in the 8000s. (Comcast has no <br />mosaic and is required to have the HD Access Channel located near the <br />broadcast channels). <br /> Public Service Announcements. CenturyLink will allow the Commission <br />to air PSA’s on non-Access channels during periods of unsold/unused <br />airtime (Exceeds Comcast’s commitment). <br /> Video On-Demand. CenturyLink will provide 25 hours of VOD per <br />member city (Exceeds Comcast’s PEG commitment). <br /> PEG Support. CenturyLink will pay a PEG Fee in support of the Access <br />Channels of $4.15 (This fee is equal to the fee that Comcast currently <br />passes through to its subscribers in the City). <br /> <br />Overall, the CenturyLink cable franchise is substantially similar to the Comcast cable <br />franchise in most respects. The following highlights the differences between the two <br />cable franchises: <br /> Term. CenturyLink’s Franchise term is 5 years. Comcast’s term is 15+ <br />years. <br /> <br /> Indemnification of the City/NSCC. CenturyLink has an additional