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y~ 10 9':> }IU\ 13: 1-4 r.H ~J ao.! l\ifr Dan Wall August 10, 1998 Page 2 large capacity separate network for use by publ.ic illstitutions -- at no charge or favorable rate terms Capability for hiiZh-SDccd data selViCt:5 "'\-fueL are exnected to be oJlered begjnninn '--... . 1'"' .&;;1 b in 1998 Public, educalional and governmental access support payments from the PEG fee including $667,286 for the acquisition of new equipment for LflC North Suburban area over the next 15 years plus the access support Dayrncnts set forth in the November 3, 1994 Memorandum of Understanding Continuation of public, educational and govemmental access prograrruning support Payment of 5% of revenues on cable servIces an.d .b1gh-speed data services as a franchise fee 1ll [ecent dialogue "vith representatives of MediaOne, various representatives of the City have requested clarification of certain matters addressed in the fTanchise The following dIscussion is In response to that request. LEVKL PLAYING FIELD The Franchise [s non-exclusive and in no way protubilS the en)' from granting additional cable communications franchises Indeed, MediaOne contemplates more competition during the renewal franchise term than was experienced during the irutial term of the franchise. Because MediaOne is prepared to make a very substantial investment in upgrading the system, providing public, educational, and govemmental access support grants, extend cable plant pursuant to the extension provisions, and many other improvements, it is essential that there are assurances that future competition be on an equal footing. The rather general "level playing field" or "equal burdens" laneuage set fOIth in the document serves to provide Ll-te CIty flexibility in the terms of future franchises rather than mandate identical franchises_ Accordingly, while the net total burden is to be th~ same, the City has the latitude to establish varying components of that total burden. Nothing in the tiaTIchise prevents any such additional franchises from being Identical to the MediaOne franchise. In the context of the level playing field discussion, the issue of the definition of "cable services" has aiso been raised, presumably with a view towards its impact on potential franchise fee revenues to the City. In that regard, MecliaOne has committed to pay its franchise fee on cable seIV'ice revenues, as well as the revenue derived from our anticipated ofl'eriJlg of MediaOne Express high-speed data Internet service 2112616-1 - ~fP3