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The franchise fee is set during initial negotiation of the franchise agreement, usually by a process in which the government requests bids from cable providers to serve their community. This fee can be renegotiated when the franchise agreement comes up for renewal, usually at intervals of 10 to 12 years.
In some cases the LFA is the state, while in others it might be a city, county, or municipality. The LFA is meant to address cable problems such as service related rates and charges, tier rates, customer service problems, franchise fees, signal quality, and the use of public, educational, and governmental (PEG) channels. [2]
The U.S. Federal Communications Commision (FCC) on Thursday voted 3-2 to tighten rules governing the franchise fees paid by cable companies to local authorities, a move that cities warn could ...
These fees cover the fees paid to individual cable channels for the right to carry their programming, as well as the cost of operating and maintaining the cable television system so that their signals can reach subscribers' homes. Additional cable television franchise fees and taxes are often tacked on by local, state, and federal governments.
Charter pays Paramount to carry its channels, including CBS and Nickelodeon. The outcome of the negotiations could weigh on Paramount's valuation in the event of a sale.
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In franchise agreements, contracted between cable operators and municipalities, the municipality could specify a PEG channel requirement and later opt out of these channels, keeping the cable television franchise fees for their general fund and supplying their communities with no PEG outlets or channel capacity. Since its approval, many public ...
The Federal Communications Commission (FCC) announced a proposal Tuesday to ban cable and satellite television early termination fees. In a press release, the FCC said these fees may limit ...