Cable Franchise Media Briefing

8/8/2019 Cable Franchise Media Briefing

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EMBARGOEDCONFIDENTIAL

Briefing on Current Status of Cable TVRenewal Franchise Negotiations

September 14, 2010


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Time Warner Cable N. and S. Manhattan franchises granted 1970, renewed

1990, again 1998 Queens, Staten Island and Western Brooklyn granted

1983, renewed 1998 Cablevision Systems

Bronx and 2/3 of Brooklyn (1983, 1998) Verizon FIOS

Citywide, under construction, 2008

Cable TV Franchise History in NYC


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Caps franchise fee at 5% of cable service revenue(with narrow exceptions to be discussed)

Bars franchise requirements for specific channelsor programs (except set-aside for public,educational, governmental channels)

Bars regulation of cable TV subscriber rates Requires renewal of franchises unless at least one

of four factors is met

Federal Law Limits


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Renewal required unless franchisee: Has failed to comply with material terms of franchise Service quality (signal quality, complaint response, billing

practices) has not been reasonable in light of communityneeds

Is not willing to meet reasonable, future, cable-relatedcommunity needs and interests, taking into account the

cost of meeting such needs Lacks the financial, legal, or technical ability to meet such

needs

Four Cable TV Franchise Renewal Factors


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Universal service requirements Consumer protection PEG channels and capital support Institutional Network Street management 5% of cable revenue as cash franchise fee

So What Can A Cable TV Franchise Include?


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Through July, 2020 (matching Verizon) But City can terminate early if franchise fees

decline 22.5% from their peak

Term Length


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5% of cable TV revenue, maximum permitted bylaw

Franchise Fee


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9 current channels plus 8 new channels phased inover next several years (matching Verizon)

At least one channel will be high-definition

25 hours of video-on-demand for educational/

government programming

Public, Educational and GovernmentChannel Capacity


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More than $20 million in new funding for I-Net (contributedproportionally by CV and TW)

I-Net overview: City of New Yorks private metropolitan area network, supplies the

fundamental backbone for data communications among the 350,000municipal employees.

Hosts more than 400 applications for several dozen Mayoral and Cityagencies.

Services: Agency to Agency Connectivity Access to Mainframe Applications (FMS) Back up and Storage Voice Over IP (VoIP) Video Conferencing

I-Net

Public Safety Support Wireless Network Backhaul

(NYCWiN) Streaming Video


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$1.8 million per year ($1.2 million from TWC,$600K from CV) to bring fiber into commercialbuildings not currently being served

TWC to install 20 miles per year on commercialblocks and will wire Brooklyn Navy Yard;Cablevision already serves the commercial blocks

in its service area More than $1.5M for media lab to support new

media research in NYC

Commercial Economic Development


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TWC to develop 40 (4 per year) communitybroadband access centers, in partnership with not-for-profits, providing free access to computers

hooked up for broadband internet access CV developing program with DOE to provide new

services to public school students

Community Broadband Internet Projects


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TWC and CV to spend approx. $10M to build Wi-Fibroadband internet service to City parks (expectedto serve about 32 parks across the City)

All users will be able to use the service all day for99 cents

But service is free for ten minutes up to three

times a month and 99 cent fee is waived for allTWC/CV broadband subscribers

Community Broadband Internet Projects:Parks


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Agreed to match the consumer protection provisions negotiatedwith Verizon in 2008

In addition, maintain at least current standards until 2012 Substantial upgrades to phone answering systems have been

implemented New systems to confirm appointments via email, phone, internet

will be implemented

Consumer Protection

Documents

Cable Franchise Media Briefing