[1st-mile-nm] FCC UPDATES CABLE FRANCHISING RULES

[Richard Lowenberg]

The FCC is removing local franchises and programming.   Following is an 
FCC statement and a response by NATOA (National Association of 
Telecommunication Officers and Administrators).
RL
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FCC UPDATES CABLE FRANCHISING RULES TO PROMOTE BROADBAND DEPLOYMENT BY 
CABLE OPERATORS

https://www.fcc.gov/document/fcc-enforces-franchising-laws-promote-broadband-deployment

WASHINGTON, August 1, 2019—The Federal Communications Commission today 
adopted new rules to promote broadband investment and deployment.  
Specifically, the Order prohibits excessive franchise fees and explains 
that local governments may not regulate most non-cable services, 
including broadband Internet access service, offered over a cable 
system.  These rules respond to a remand by the U.S. Court of Appeals 
for the Sixth Circuit and set forth how local franchising authorities 
may regulate cable operators pursuant to the Communications Act.

Under the Communications Act, every local franchising authority and 
every cable operator that offers cable service must comply with the 
Act’s cable franchising provisions, and local franchising authorities 
may charge franchise fees that are capped at five percent of a cable 
operator’s revenue derived from the provision of cable service.  But 
some local governments, through the practice of requiring “in-kind 
contributions,” have been imposing franchise fees that exceed the five 
percent cap.  In addition to being unlawful, this practice discourages 
broadband investment, deployment, and innovation by cable operators.

In order to rein in overreach by local franchising authorities, and 
thereby facilitate the deployment of broadband infrastructure, the 
Commission concluded today that, under the Act, cable-related, 
non-monetary contributions required by a local franchise are franchise 
fees subject to the statutory five percent cap with limited exceptions, 
including an exemption for certain capital costs related to public, 
educational, and governmental access channels.

It has also prohibited, pursuant to the Act, local franchising 
authorities from regulating the provision of most non-cable services, 
including broadband Internet access service, that cable operators offer 
over their cable systems.

In addition, the Commission decided that any state or local regulation 
of a cable operator’s non-cable services that imposes obligations on 
franchised cable operators beyond what the Communications Act allows is 
preempted.

Finally, the Commission concluded that requirements concerning local 
franchising authority regulation of cable operators should apply to 
state-level franchising actions and state regulations related to local 
franchising.

Together, these rules faithfully implement the terms of the Act and 
remove obstacles to the deployment of broadband.

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NATOA CHALLENGES FCC DRAFT ORDER UPENDING 35 YEARS OF HISTORY AND 
THOUSANDS OF AGREEMENTS ACROSS THE COUNTRY

https://www.natoa.org/web/site_issue/issue_detail/84

FOR IMMEDIATE RELEASE (July 25, 2019) – In anticipation of the Federal 
Communication Commission’s (FCC) August 1st vote on the Proposed Third 
Report and Order that effectively rewrites the Cable Act, the National 
Association of Telecommunications Officers and Advisors (NATOA) is 
working diligently with national associations, member attorneys, and 
local governments across the country to oppose the proposed Order.

“A week from now, the FCC will consider the proposed franchising Third 
Report and Order after months of industry meetings and filings that 
sowed seeds of misinformation and revisionist history on federal law and 
regulations dating back 35 years,” said Mike Lynch, NATOA President. 
“NATOA opposes the proposed new rules. There is no basis to re-interpret 
the Cable Act. Thousands of local franchise agreements have been 
mutually negotiated over the last 35 years. And as a result, cable 
operators have become the largest broadband service providers in the 
nation.”

This week, NATOA filed detailed ex partes (ROSENWORCEL/STARKS EX PARTE,  
PAI/CARR/ORIELLY EX PARTE,  EX PARTE LETTER FILED WITH NLC, USCM AND 
NATAT) objecting to the draft order and challenging presumptions made by 
the NCTA in their numerous ex parte filings in this proceeding over the 
last five months.  “NATOA is grateful to our members who assisted in the 
drafting and editing of this document, and for the sustained support of 
and partnership with the United States Conference of Mayors (USCM), the 
National League of Cities (NLC), the National Association of Counties 
(NACo), and the Alliance for Community Media (ACM),” said Lynch. “Thank 
you and thanks to our member communities, their respective legal 
counsels, and NATOA General Counsel Nancy Werner.”

While NATOA vigorously opposes the draft Third Report and Order, we are 
hopeful that if the Commission opts to move forward, they consider the 
requests of NATOA and other local government associations and 
representatives for changes to ease the impact and burden on local 
governments and PEG access centers across the country.



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Richard Lowenberg, Executive Director
1st-Mile Institute     505-603-5200
Box 8001, Santa Fe, NM 87504,
rl at 1st-mile.org     www.1st-mile.org
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