Save Access

from: New York Business

City says new cable TV entrants face same rules

by Amanda Fung
August 14, 2006

City Council officials said new cable TV entrants would have to follow the same guidelines as existing franchise-owners.

High-ranking City Council officials said on Monday that new cable TV entrants would have to follow the same guidelines as existing franchise-owners, including financial contributions to public access channels.

If the City Council approves the cable franchise TV process, the city’s Department of Information Technology and Telecommunications will begin accepting proposals from Verizon Communications Inc. and any other provider who wants a TV franchise in New York City.

DoITT grants non-exclusive cable TV franchises.

"It is too premature to outline new franchise agreements," said Radhika Karmarkar, DoITT senior counsel for regulatory and legislative affairs during her testimonial before the City Council. However, she assured City Council members that those detailed discussions will take place with Verizon once the city is allowed to grant new cable TV franchises.

Time Warner Inc. currently has seven cable TV franchises and Cablevision Systems Corp. has two franchises -- both covering specific boroughs of the city. RCN Corp. holds one open video franchise, which allows it to offer TV in the city without holding a franchise.

Time Warner and Cablevision have already begun the process of renewing their franchises with the city which will expire in 2008, while RCN may have to apply for a franchise when its agreement ends at the end of next year.

The city may consider granting a citywide franchise requiring a provider to offer TV to the entire city or it may redefine those franchise areas, said Ms. Karmarkar.

According to DoITT, Time Warner has the most cable TV subscribers in the city with about 1.1 million, Cablevision has 600,000 and RCN has 100,000.