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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, August 8, 2011 7:00 o’clock p.m. _____________________________________________________________________________________ Page 2 of 21 (3. LMCC PRESENTATION, Continued) Fletcher stated one comment they have received was to bring in another competitor to this area, such as Comcast. Fletcher indicated they have asked Comcast and Media Charter and they both have responded in writing that they are not interested. Fletcher pointed out this is not a very dense area and it would be expensive for another company to come in and provide the same service. Fletcher stated the number one discussion item will probably be whether Mediacom can expand their service area. Mediacom has indicated they are open to expanding coverage. The current franchise agreement basically says they have to build out if they have 30 homes per cable mile and after that there is no requirement to expand. The FCC has deregulated Mediacom as far as pricing and the LMCC has no authority over requiring Mediacom to expand the number of channels they offer. Approximately half of the committee is technically oriented and the LMCC will be hiring a technical consultant. The LMCC has no ability to regulate internet or phone service since those are provided separately. Franchot suggested that the key steps be laid out on the three year negotiation process. Fletcher stated Mediacom would like a shorter negotiation period, such as six months, but that is not likely to happen. Franchot commented that the best outcome would likely be a two-year negotiating process. Franchot asked whether the LMCC shows what technology is available on the maps they have provided. Fletcher indicated it does not show the technology that is provided but it shows how the infrastructure is laid out. Franchot noted that Mr. Fletcher mentioned that the LMCC does not have any real authority over the internet or phone. As it relates to what is currently called cable TV, Franchot asked what impact there would be if that should switch more to the internet. Fletcher stated his concern would be that the LMCC would experience a decrease in their revenue. Franchise fees are based on cable revenues and not internet revenues. If things shift to the internet, the potential pot of revenues may disappear or decline. Mediacom also sells a lot of internet and phone service so they likely would do just fine. Franchot asked whether the LMCC would have the funding available to televise the city council meetings if that change should occur. Fletcher indicated that service likely would be impacted by the decrease in fees. Mayor McMillan opened the public hearing at 7:17 p.m. There were no public comments regarding this item. Mayor McMillan closed the public hearing at 7:17 p.m. Franchot noted that the LMCC has an e-mail address and phone number on their website that can be accessed by the general public. Item #03 - CC Agenda - 08/22/2011 Approved Council Meeting Minutes 08/08/2011 [Page 2 of 21]