Post by Skaggs on Apr 6, 2011 9:02:08 GMT -5
Gloves off in cable fight
Time Warner challenges Verizon’s franchise deals with local municipalities
By LARRY RULISON, Times Union Business writer, April 6, 2011
ALBANY — Time Warner Cable has been fighting tooth and nail against Verizon’s efforts to bring its new FiOS TV service to communities in the Capital Region.
Time Warner has been challenging the validity of cable TV franchise agreements that Verizon has been negotiating with local municipalities.
The agreements, which have been approved by the villages of Scotia and Colonie, along with the towns of Bethlehem and Guilderland and the city of Schenectady, must also be approved by the state Public Service Commission.
Time Warner has argued that the grants that Verizon has promised local municipalities for public access channel programs are far less than what it negotiated in its franchise contracts, creating an uneven playing field.
Time Warner has also challenged the franchise fees that are paid the municipalities.
Although the PSC has approved franchise agreements in Scotia, Colonie, Guilderland and Bethlehem without significant changes, Time Warner’s latest fight is over Verizon’s franchise agreement with Schenectady, which is still before the PSC. Time Warner says that the contract violates PSC regulations that govern franchise standards.
Time Warner pays Schenectady $100,000 a year for its public access programming, but the Verizon franchise with the city commits only to 15 percent of that during the first five years and 25 percent of that payment in years five through 10.
“The PSC rules require a level playing field when a new entrant receives a cable franchise in a community where there is already an existing franchise,” said Time Warner spokeswoman Lara Pritchard. “In this case, we believe that the franchise submitted by Verizon and approved by the city of Schenectady does not pass the level playing field test.”
Verizon spokesman John Bonomo said it doesn’t make sense for Verizon to pay as much as Time Warner, especially when its initial penetration in the market is significantly less. “Verizon does fully endorse the principles of competitive neutrality among competing cable providers when it comes to TV franchise agreements,” Bonomo said. “There is no fairness, however, in asking a new entrant with zero customers at startup to pay an amount that’s equal to a provider that has a decades-long monopoly on the market. This is simply Time Warner Cable’s desperate attempt to thwart competition for the residents of the city of Schenectady.”
Mike Magguilli, attorney for the town of Colonie, said that Time Warner brought up similar complaints about its franchise during the public hearing held on the contract last month.
He said Time Warner hasn’t been willing to renegotiate its own cable TV franchise with the town, which was originally drafted in 1994 and expired in 2004. The dispute over Verizon seems hypocritical, he said, considering their contract with the town is based on 1994 dollars.
“It’s been very difficult to get them to the table,” Magguilli said.
Reach Larry Rulison at 454-5540
Time Warner challenges Verizon’s franchise deals with local municipalities
By LARRY RULISON, Times Union Business writer, April 6, 2011
ALBANY — Time Warner Cable has been fighting tooth and nail against Verizon’s efforts to bring its new FiOS TV service to communities in the Capital Region.
Time Warner has been challenging the validity of cable TV franchise agreements that Verizon has been negotiating with local municipalities.
The agreements, which have been approved by the villages of Scotia and Colonie, along with the towns of Bethlehem and Guilderland and the city of Schenectady, must also be approved by the state Public Service Commission.
Time Warner has argued that the grants that Verizon has promised local municipalities for public access channel programs are far less than what it negotiated in its franchise contracts, creating an uneven playing field.
Time Warner has also challenged the franchise fees that are paid the municipalities.
Although the PSC has approved franchise agreements in Scotia, Colonie, Guilderland and Bethlehem without significant changes, Time Warner’s latest fight is over Verizon’s franchise agreement with Schenectady, which is still before the PSC. Time Warner says that the contract violates PSC regulations that govern franchise standards.
Time Warner pays Schenectady $100,000 a year for its public access programming, but the Verizon franchise with the city commits only to 15 percent of that during the first five years and 25 percent of that payment in years five through 10.
“The PSC rules require a level playing field when a new entrant receives a cable franchise in a community where there is already an existing franchise,” said Time Warner spokeswoman Lara Pritchard. “In this case, we believe that the franchise submitted by Verizon and approved by the city of Schenectady does not pass the level playing field test.”
Verizon spokesman John Bonomo said it doesn’t make sense for Verizon to pay as much as Time Warner, especially when its initial penetration in the market is significantly less. “Verizon does fully endorse the principles of competitive neutrality among competing cable providers when it comes to TV franchise agreements,” Bonomo said. “There is no fairness, however, in asking a new entrant with zero customers at startup to pay an amount that’s equal to a provider that has a decades-long monopoly on the market. This is simply Time Warner Cable’s desperate attempt to thwart competition for the residents of the city of Schenectady.”
Mike Magguilli, attorney for the town of Colonie, said that Time Warner brought up similar complaints about its franchise during the public hearing held on the contract last month.
He said Time Warner hasn’t been willing to renegotiate its own cable TV franchise with the town, which was originally drafted in 1994 and expired in 2004. The dispute over Verizon seems hypocritical, he said, considering their contract with the town is based on 1994 dollars.
“It’s been very difficult to get them to the table,” Magguilli said.
Reach Larry Rulison at 454-5540
