2014_0616_CCpacket - Laserfiche WebLink

Home

Page 21 PUBLIC DOCUMENT-TRADE SECRET DATA HAS BEEN EXCISED Proposal for Formal Franchise Renewal December 20, 2013 viewers can and do prefer to receive local news and information—and most if not all of the programming that might appear on PEG channels — through other means, including internet and live streaming. In sum, more content on fewer channels will enhance and not reduce the quality of PEG programming. The NSCC Staff, through its report, has not shown a substantial need for 8 PEG channels. In short, the Staff Report, the RFRP, and the NSCC's consultant reports do not provide a basis to support the NSCCs demand for 8 PEG channels, HD channels dedicated to PEG, and video-on-demand resources for PEG.40 The RFRP violates the Cable Act and the First Amendment in this respect. Payments for PEG Capital Costs. Section 622(g)(2)(C) excludes from the term "franchise fee" any "capital costs which are required by the franchise to be incurred by the cable operator for public, educational, or governmental access facilities." The FCC has made clear that any such capital requirements made of a cable operator are not subject to the 5% franchise fee standard.41 Though PEG capital costs are not subject to the 5% franchise fee cap, they remain subject to the Cable Act's "reasonableness" requirement and that such LFA requests be supported by an evaluation of PEG related community needs. The NSCC RFRP says that Comcast "shall voluntarily pay" $14,160,740 to the NSCC over 10 years for additional capital costs to be allocated "in the sole discretion" of the NSCC.42 The RFRP states that this "voluntary requirement" is supported in the NSCC Staff Report, Needs Assessment Report, and CBG's Technical Review Report. But a close examination of the NSCC Staff Report, Needs Assessment Report, and CBG's Technical Review Report reveals little or no documentation of any current or future need justifying a demand for any PEG capital requirement from Comcast much less one of this size. The NSCC's demand for such equipment is therefore unreasonable and under the Cable Act Comcast is not required to comply with it. Payments for PEG Operating Costs. Section 622(g)(1) of the Cable Act defines a franchise fee as "any tax, fee, or assessment of any kind imposed by a franchising authority ... on a cable operator or cable subscriber, or both, solely because of their status as such." The FCC has been clear that this provision requires that any required financial support other than reasonable capital 40. Preferred Comm., Inc.,1990 U.S. Dist. LEXIS 20205 at *36. 41. 621 Order ¶109; Second 621 Order ¶13. 42. RFRP at 65-66.