from: Lockport Union-Sun & Journal

City, towns oppose state control of cable companies

By Tasha Kates/katest@gnnewspaper.com

Town boards in the Town of Lockport and Pendleton approved resolutions Tuesday night opposing two state bills that would take cable out of the municipalities’ hands.

The Assembly bill, sponsored by Assemblyman Richard Brodsky, D-Westchester, is known as the Omnibus Telecommunications Reform and Consumer Protection Act of 2007. Part of the proposed act would have municipalities ceding cable franchise negotiations to the state so telecommunications companies can build new networks without having to go to each community for franchises.

The city and town of Lockport have had a joint franchise agreement for the last 25 years; Pendleton has its own franchise agreement. Under the agreements, each municipality receives 5 percent of the amount paid by residents to Time Warner.

Lockport Town Supervisor Marc Smith said both the city and town give theirs to the Lockport Cable Commission, the franchising authority for LCTV. Pendleton receives more than $25,000 a year from its franchise, money they plan for each year when drafting a budget.

LCTV Executive Director Tom Riley and other local officials have said the station’s funding could be much less if the bill is passed.

“My understanding is it preserves the ability to require a franchise fee, which is the bulk of our revenue, but beyond that, it's unclear,” Riley said. “There is a lot to be said for respect to detail.”

The most recent version of the Assembly act is supposed to create a fund to build a strong system of public access-governmental-educational stations, replacing the “woefully inadequate” ones who provide little access or programming opportunities.

If LCTV’s funding is cut down, Riley said it be impossible for the PEG television station to stay on the air.

“We’re limited here as a not-for-profit,” Riley said. “We can’t just go out and do commercial work.”

Riley said he thinks the bill is only for the benefit of phone companies like Verizon, who are now starting to offer cable television.

“They pretty much lost a large portion of core business, which was local telephone service,” Riley said. “They feel the best business plan for success is competition with cable companies ... I’m not opposed to phone companies getting into the cable market, but it needs to be done on level playing field with cable.”

A portion of the Omnibus act explains the bill creates a level playing field for existing cable companies and phone companies because all providers can apply and fall under the uniform rules of a statewide franchise. The bill argues that it took years for cable companies to offer service to the whole state, and forcing other companies to do the same wouldn’t create a competitive market.

In late March, a public hearing was held on the Senate bill, which is sponsored by Sen. Jim Wright, R-Watertown. A representative in Brodsky’s office said a public hearing will be planned for the Assembly version too.

Mayor Michael Tucker said Monday the city will likely bring up the same resolution as the Town of Lockport and Pendleton this month.

“It just protects our interests and LCTV,” Tucker said. “It will allow us to maintain control. We don’t want anything to happen to LCTV.”

Smith agreed.

“New York is a home rule state,” Smith said. “Hopefully this will not gather enough momentum in Albany to be passed.”