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May 23, 2014 <br />Page 8 <br />Formal franchise renewal <br />• the maximum franchise fee equaling 5% of total revenues of the <br />system, or approximately $15.5 million over 10 years; <br />• PEG capital funding of approximately $4.8 million over 10 years; <br />• complimentary service to public schools, libraries, and municipal <br />buildings valuing over $128,000 over 10 years; <br />• three standard -definition channels and one high-definition channel <br />on Comcast's network allocated for PEG programming, with an <br />opportunity for an additional channel based on usage; <br />• use of the current I -Net but in compliance with federal law—that is, <br />at no cost but only to the extent used for transmission of PEG - <br />programming; non -PEG users of the 1 -Net would be charged <br />discounted market rates. <br />Comcast's proposal included valid surveys conducted by an expert in <br />survey research that showed high satisfaction rates with Comcast's overall <br />services, including channel lineup, picture quality, and customer service. The <br />survey also showed relatively low interest in current PEG channels and zero <br />interest by subscribers in paying for PEG programming. Another report <br />analyzed serious flaws and bias in the ascertainment conducted by the NSCC's <br />consultant. Other reports included: <br />• analysis by a mass -communications expert on how PEG <br />programming can actually be more effective by consolidating <br />programming onto fewer channels and how the NSCC's PEG <br />demands underscore the NSCC's obsolete thinking with respect to <br />current trends and technologies relating to how local news and <br />information is consumed; <br />• analysis by a telecommunications engineering expert on the true and <br />significant value and cost of the I -Net demanded by the NSCC; and <br />• analysis by a financial expert on the NSCC's use of its PEG fees, <br />which included large amounts for professional and legal fees and a <br />remarkable $2.1 million of unspent reserves held by the NSCC and <br />NSAC. <br />Comcast's full public proposal is being submitted to each city administrator or <br />manager, and can be viewed online at the following <br />Mip://w����c cry l5,orgicomcast C ONIC_A51 lYv_A1, PROPOSAL POR It. <br />1?U f AV'.A,I,pubhc I aicisccl,.p(lf <br />