Home > News > Charter Communications

Charter Communications News

City retains low cable franchise fee
< United States >

March 13th, 2006
The City Council approved a new agreement with a cable provider that calls for the city to receive a 1 percent franchise fee.

Council members could have asked for up to a 5 percent fee from Charter Communications, but opted against it when negotiating the 10-year franchise agreement because cable companies simply pass the cost on to customers.

"It's just as tight for the average citizen as for the city," Councilman Roger Whitman said. "I can't see 5 percent."

The contract takes effect May 31.

Jessica Wood, the attorney who negotiated the contract on the city's behalf, said most municipalities opt for the maximum amount because revenues are so tight, but Mayor Ken Bush said he could not support asking residents to pay more.

Coopersville has had the 1 percent fee since 1994.

Wood said cable companies are pushing to remove franchise controls from local governments because they do not like negotiating with the individual communities and they want the fees lowered. The long-term agreement with Charter might protect the city if legislation proposed at both the state and federal levels that changes the way franchise agreements are handled is approved, she said.

There are about 1,000 cable subscribers in the city. The city receives about $6,400 annually from the franchising fee.
http://www.mlive.com/news/grpress/index.ssf?/b ...

Franchisors Updates

News [1]
Press Release [0]
Interview [0]
Article [0]