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12-14-2015 Council Packet
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12-14-2015 Council Packet
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City Council
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Council Packet
Meeting Date
12/14/2015
Council Meeting Type
Regular
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position. Id. CenturyLink is also willing to completely indemnify the NMTC for any litigation <br />concerning the grant of a cable franchise to CenturyLink. See Exhibit 2 at 6. <br />With the 5 -Year Build Statute on one hand and federal preemption on the other, the <br />NMTC is left with a difficult choice. Does the NMTC err on the side of caution and require a 5 - <br />year build -out commitment from CenturyLink and risk thwarting a competing cable operator that <br />will bring benefits to consumers of the NMTC member cities? Or, does the NMTC err on the <br />side of competition and risk litigation with Comcast? Litigation may be inevitable with either <br />choice. <br />Should the NMTC direct staff to negotiate a cable franchise with CenturyLink, the cable <br />franchise should contain fair and reasonable build -out requirements with the goal of CenturyLink <br />providing competitive cable services throughout the entire NMTC member city area within a <br />reasonable time and in an equitable manner In doing so, the Federal Cable Act, the 5 -Year <br />Build Statute, the FCC 621 Order, and any other applicable law should be considered. <br />d. Level Playing Field Considerations. <br />Comcast is the only commenter to specifically raise the state level playing field statute, <br />Minnesota Statutes Section 238.08, as a concern. In the FCC's 621 Order, the FCC found: <br />In many instances, level -playing -field provisions in local laws or <br />franchise agreements compel LFAs to impose on competitors the <br />same build -out requirements that apply to the incumbent cable <br />operator. Cable operators use threatened or actual litigation <br />against LFAs to enforce level -playing -field requirements and <br />have successfully delayed entry or driven would-be competitors <br />out of town. Even in the absence of level -playing -field <br />requirements, incumbent cable operators demand that LFAs <br />impose comparable build -out requirements on competitors to <br />increase the financial burden and risk for the new entrant. <br />621 Order at ¶ 34 (Footnotes omitted). Regardless of the reason for raising the issue, any <br />franchise should contain adequate provisions addressing the state level playing field statute. This <br />should include provisions to provide cable service to all NMTC member city residents over a <br />reasonable time and reasonable circumstances (consistent with the build -out discussion above), <br />similar public, educational, and governmental access requirements as Comcast, and the same <br />franchise fee requirement as Comcast. See e.g. Blaine Ord. 02-1957. <br />e. Compliance with Comcast Cable Franchise <br />In the event the NMTC determines to grant a cable franchise to CenturyLink, the cable <br />franchise must be granted by an ordinance. The local level playing field provision in the cable <br />franchise with Comcast requires that the NMTC not authorize or permit itself or another Person <br />or governmental body to construct, operate or maintain a cable system on terms and conditions <br />which are, taken as a whole, more favorable or less burdensome than those applied to the <br />17 <br />
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