Title
Response to Cox Cable Petition (NB)
Explanation
Over the years, the federal government has been involved in the deregulation of the cable television industry. The City has received a Petition filed by Cox Communications, Inc. with the Federal Communications Commission (FCC) in Washington D.C. Cox is seeking to revoke Gainesville's basic rate regulatory authority. The rationale cited by Cox is that there is sufficient competition so that municipal rate regulation is no longer needed. Since there are not a significant number of cable television providers in our area, it appears that the "competition" includes alternative competitive services such as satellite television service and others from which consumers may obtain informational and entertainment services.
Unless the City and/or Alachua County opposes the Petition, the FCC is likely to grant the Petition. If granted, the City would lose the ability to: 1) regulate cable rates for basic service, equipment and installations; 2) enforce the uniform rate provision of FCC rules which requires that all customers within a given franchise area be charged the same rates; and, 3) enforce the anti-buy through provisions which forbid cable operators from requiring customers to buy any tier of service except basic cable in order to purchase premium or pay-per-view channels.
Fiscal Note
Funds are available in the current budget to pay for consulting and/or outside legal services.
Recommendation
The City Commission authorize staff to: 1) hire a consultant or special counsel, if appropriate, to represent the City in this manner; 2) file a response to the FCC opposing Cox's Petition, if warranted; and, 3) take any other reasonable actions to protect the interests of the City and its cable subscribers.