Laserfiche WebLink
terms tlon'l allow them to recoup <br />investment on improvements made in <br />the previous renewal period 'niouRh <br />the truth lies somewhere in hetween. <br />the renewal iieriod has become a pow ­ <br />erful bareaininft chip. Tl»e process is <br />tO'ing and e.xpensive—and is Retlinif <br />more expensive as leRal and consult ­ <br />ing fees add to the bill. <br />Any doubts as to the cities' ability to <br />tie a system in regulatory knots need <br />only look to Angola, Indiana, which <br />wanletl In giveTriax Communicntions <br />a three-year franchise. Because the <br />1984 Act requires an operator to begin <br />the renewal process three years before <br />the franchise expires, Triax would <br />have finished negodations only to have <br />to start all over again. After five montlis <br />of negotiation, Triax got a five year <br />renewal with a five year extension. <br />Ot Fact* Raft Rtfalatiaa <br />The threat of regulation from the <br />cities exists not only during the <br />renewal process, but throughout the <br />franchise period. Even under the Act, <br />cable operators have an Achilles <br />heel—the cities just had to learn how <br />to exploit it. Now they have. <br />Thai chink in the operator's armor <br />is the customer service contract. Cer­ <br />tainly it remains a bargaining chip dur­ <br />ing renewal, but that contract opens <br />the potential tor de facto regulation <br />“The 1984 Act was clearly a cable <br />industry act, slanted toward cable,* <br />says • franchise consultant asking not <br />to be identified. “People thought the <br />fraiKhiae authority had lost all regula­ <br />tory power and it did lose a loL .So the <br />cities had to ask what leverage does a <br />dty or county have, and customer ser­ <br />vice is a big part of it. Cities are very <br />concerned about rates, but there is not <br />much they can do about it There is <br />definitely bargaining that goes on <br />There ia so much room you have, then <br />you have to be creative.* <br />Thai creativity may begin with the <br />atandarda. which is why it has <br />become a common part of renegoUa- <br />tion. “WhM you have seen in the last <br />years is increased focus on more <br />carefriHy articulated conaumer protec ­ <br />tion Mandarda, says Norman 5iinel, an <br />mon^ with Arnold and Poner a <br />Waahinginn law firm that represents a <br />number ot franchise aufhoriUes. as <br />^ aa NATOA “Virtually every oty <br />in negotiations is getting one * <br />And a city may not have to be m <br />M.n I't'H <br />SOU) <br />f ! f ' |j' <br />t I. '• »• K . • ’ ,. <br />» » » ': \ <br />Tiimir'>i)\ Cwmhinu u I m <br />v\. <br />0 <br />A V <br />October M. 1991 <br />A <br />Perfect <br />1991 <br />lOlli Anniversarv <br />y iv nrr? wonMOM onpicct <br />Rfti%trt(jon Mari|fr <br />SIka IrK <br />609 mim * <br />( A • I J V I s I 0 K . J u I T I . Iff! 23