Laserfiche WebLink
3. CenturyLink appears to have the Financial, Technical and Legal Qualifications to <br />Provide Cable Service. <br />While the NMTC may review the financial, legal and technical qualifications of a <br />franchise applicant, the FCC has indicated that in cases of the application by a LEC that already <br />has a certificate for public convenience and necessity from the state, an LFA need not spend a <br />significant amount of time considering the fitness of such applicants to access public rights-of- <br />way. See 621 Order at ¶ 23. This is because the LEC has already demonstrated its legal, <br />technical, and financial fitness to be a provider of telecommunications services. Id. <br />a. Financial Evaluation. As shown above, under 47 U.S.C. § 541(a)(4) the NMTC <br />may consider a franchise applicant's financial qualifications in determining whether to grant a <br />franchise. The parent company of the proposed franchisee appears financially qualified. <br />CenturyLink, Inc. is the third largest telecommunications company in the United States with <br />$18.0 Billion in annual operating revenue and free cash flow of $2.7 Billion. See Exhibit 2 at <br />page 5-6; and Exhibit 3 at ¶ 38. CenturyLink has further committed to making a $125 Million <br />investment to bring cable television service to the Twin Cities. See Exhibit 2 at page 6. <br />Provided that CenturyLink, Inc. can provide adequate assurances for the performance of the <br />proposed franchisee, it appears that CenturyLink has the financial qualifications to operate a <br />cable communications system in the NMTC. Recently, the NMTC member cities required <br />certain parent guarantees of GreatLand Connections in connection with the recent conditional <br />approval of the cable franchise transfer from Comcast to GreatLand Connections. See e.g. <br />Blaine Res. No. 15-016. <br />b. Technical Evaluation. As shown above, under 47 U.S.C. § 541(a)(4), the <br />Commission may consider whether CenturyLink has the necessary technical qualifications to <br />construct, operate and maintain a cable system. CenturyLink has a demonstrated history of <br />operating cable systems in 13 markets in the United Sates. See Exhibit 2 at p. 4. CenturyLink <br />has approximately 300,000 cable television subscribers and is capable of delivering it to <br />approximately 2.3 Million homes. Id. CenturyLink's management team displays a wealth of <br />experience in the cable and telecommunications industry. See Exhibit 3 at 1116, 11-16, and 35- <br />36. The application described a state-of-the-art cable system capable of reliably providing a <br />panoply of cable services to subscribers. See Exhibit 2 at pp. 2-3. According to CenturyLink, it <br />"offers more channels in HD than any other MVPD nationally." Id. at p. 1. Based on the <br />information contained in CenturyLink's application and its response to the request for <br />information, it appears that CenturyLink has the technical qualifications to operate a cable <br />communications system in the NMTC. <br />c. Legal Evaluation. Both federal law and the Competitive Franchising Policies <br />and Procedures permit the Commission to consider a cable franchise applicant's legal <br />qualifications in the process of determining whether to grant a cable television franchise.28 The <br />applicant appears legally qualified to hold a cable franchise in the NMTC. The company is <br />properly formed and authorized to do business in the state of Minnesota. See Exhibit 3 at ¶¶ 1-2. <br />The company agrees to make all appropriate filings and preparations prior to offering cable <br />28 See 47 U.S.C. § 541(a)(4)(C) and Section 4, Subd. 2 of the Competitive Franchising Policies and Procedures. <br />15 <br />