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COUNCIL MEETING <br />- Rate Regulation - <br />- Telecommunication <br />MAY 8, 1995 <br />The second round of FCC rate regulations <br />were implemented which had the direct affect <br />of reducing subscribers rates. <br />Legislation - A bill was introduced into the <br />Legislature which would have regulated use <br />of municipal rights-of-way by new <br />communication providers. This legislation <br />did not pass in 1994 but will be re- <br />introduced. <br />- Transfer of Community Programming - The NCSCCC has begun <br />negotiations with Meredith Cable to <br />establish a non-profit corporation which <br />would oversee community programming. <br />Mr. Tesch further explained the proposed telecommunation <br />legislation. Telephone communications are now able to provide <br />cable service to homes through the telephone lines presently in <br />place. They are not affected by community programming and do not <br />pay municipal franchise fees. The telephone is basic and is <br />needed, however, a cable company is a for profit business <br />providing entertainment and goes through municipal rights-of-way. <br />Therefore, if telephone companies are going to provide services <br />other than basic telephone, there is the need to re-evaluate to <br />determine if telephone companies should be classified in the same <br />manner as cable TV. <br />Mr. Tesch explained that the NCSCCC is investigating whether they <br />should be taking responsibility for community programming from <br />the cable TV company. The cable companies are required to <br />provide this service but do not want the responsibility. NCSCCC <br />feels that they may be able to do a better job of community <br />programming and have decided to establish a nonprofit corporation <br />in case that NCSCCC decides to follow through on this program. <br />Council Member Kuether asked how many subscribers does Meredith <br />Cable serve at this time. Mr. Tesch said about 25,000. Council <br />Member Kuether noted that cable companies who have less than <br />15,000 customers are no longer bound by some legislation passed <br />earlier. Mr. Tesch noted other savings contained in the earlier <br />legislation; 1) cable company no longer can charge for cable T V <br />remote control devices, 2) cannot charge for additional outlets <br />in the home, and 3) reduced some costs for maintenance and repair <br />service. <br />Mayor Reinert thanked Mr. Tesch for his report. <br />PAGE 5 <br />