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from: Colombia Tribune

City leaders fear effects of cable bill
Deal with Mediacom might become moot.

By MATTHEW LeBLANC of the Tribune’s staff
Published Monday, March 19, 2007

A measure that would allow the state to control local cable TV franchise agreements has Columbia leaders upset.

For nearly two years, city officials have worked to negotiate a franchise agreement with cable provider Mediacom that would force the company to pay for things such as local access channels and the use of property for cable lines.

But last week, state lawmakers passed a bill that effectively would render moot any agreement that comes out of the ongoing talks. The bill, which was passed overwhelmingly last week in the Missouri House, allows cable and telephone companies to negotiate the terms of franchise agreements directly with the state.

In Columbia, that means Mediacom could opt out of any pact the city secures to determine how much the company should pay to operate inside city limits.

Most cable subscribers in Columbia use Mediacom, and Charter Communications offers service to about 1,000 customers. Those numbers could change as a result of the new law if new competition enters the market.

Fred Boeckmann, the city’s attorney, said today that talks between the city and Mediacom will continue. He said, however, that the cable company has a significant advantage in the negotiations because it would not be required to adhere to the agreement with the city when the bill becomes law.

"It’s obviously going to have an impact," Boeckmann said. "This would certainly change the relative negotiation strengths of the parties involved."

State law now requires cable companies to apply to individual municipalities to operate in those areas. The new bill would allow the companies to register with the Missouri Public Service Commission instead, allowing them to enter hundreds of local markets without having to apply in each city.

Proponents of the measure, such as Sen. John Griesheimer, R-Washington, say the move would foster competition among cable companies and result in better prices for consumers. One potential new competitor in Columbia could be telephone company CenturyTel, which is considering offering digital television service to Columbia subscribers.

Opponents argue the bill usurps cities’ control over franchise fees and local access and government programming.

Paula Hertwig Hopkins, Columbia assistant city manager, questioned whether it is legal for the state to "pre-empt or cancel" existing franchise agreements.

"There were some things about it that we weren’t the happiest with," she said.

Randy Hollis, regional government relations manager for Mediacom, said he would continue to discuss the local franchise agreement with Columbia officials. He declined to say how the state law would affect local cable customers or whether the company would opt out of the agreement.

City Manager Bill Watkins said he hoped Mediacom would honor the local agreement even after Gov. Matt Blunt signs the bill.

Part of the local negotiations centered on securing funds for CAT3, the city’s public-access channel. Although the new state law would provide for public, educational and governmental channels, it’s unclear exactly where the money to fund the local channel would come from.

"We’re certainly still going to have our doors open," said Beth Federici, CAT3 interim director. "For the immediate future, hopefully, we will be fine."