E N D
1. Franchising Basics By Steven Dick, Ph.D.
Based on
Baldwin/McVoy
Cable Communications
2. Cable systems may be Owned and operated by a city
Owned by city and operated by cable company
Owned and operated by a nonprofit corporation
Owned by a private for-profit company
Owned by a private company sharing ownership with the franchising authority.
3. Guess which is MOST common? Private for profit companies are far more common in the United States and maybe in the world.
4. Franchises Local government (in most states) grant franchises.
Usually ONE non-exclusive franchise is granted.
Possible anti-trust problems
Cable companies must have a franchise to cross public property.
No redlining
5. Vocabluary MSO
Cable Nets
Ratings, shares Demographics
Vertical/horizontal networks
Revenue streams
Vertical integration
Basic, pay, PPV
6. Vocabulary Multiplexing
Niche networks
Shopping services
DBS
MMDS
Local Channels on DBS
Microsoft and Rating
7. Normal Parts of the Franchise Definitions
Procedure for application
Procedure for selecting applicants
Monitoring Franchisee Performance
Franchise Fee
Rate Regulation
...
8. Normal Parts of the Franchise Access to MDUs
Transfer
Term
Forfeiture
Free drops
PEG
Complaints
Commission
9. Request for proposal Ownership qualifications
Financial resources
Service area and line extension
System design
Programming and service
Rates
10. Modification of Franchises (84) A formal renewal process
Throughout the franchise
Commission should establish a pattern of behavior.
Document problems and attempts to solve.
Confront cable company on problems not solved or undesired service.
11. Modification of Franchises Step one
36-30 months before expiration of the franchise
Ascertainment
Review performance
If unacceptable review how company has failed to perform
Did city waive requirements
12. Modification of Franchises Step two
RFP
Current company may submit
City limited to the those items they can regulate
Customer service, line extension, safety, billing.
City may request an upgrade
13. Modification of Franchises Step Three
Administrative proceeding with public notice
Operator complied with existing franchise
Service reasonable for community
Operator still has the ability to offer cable
Proposal meets future needs at practical costs
14. Issues Transfer
Early renewal
New services
Non-cable services
Telco regulations
Questions NEXT
15. Review questions How might cable be considered a monopoly?
A. A single company provides service
B. DBS provides competition
C. Movie theatres provide entertainment
D. Television stations provide competition.
E. All of the above
16. Which of the following is a “vertical network?” A. USA
B. CNN
C. Microsoft
D. America Online
E. All of the above
17. A franchise is a A. City law
B. Federal law
C. Contract
D. None of the above
E. Two of the above
18. The most desirable bracket for advertisers is: A. Women 18-49
B. Men 18-49
C. Adults 18-49
D. People 12-35
E. People 35-49