In 2003, the Municipal Association entered a strategic partnership with Local Government Services to provide members technical assistance with cable franchise management. The partnership gives South Carolina local governments access to the expertise required to negotiate cable franchise renewals on reasonable terms and conditions.
Greg Fender, president of Local Government Services, spoke last month at the Association’s Annual Meeting. He updated municipal officials on the Cable Franchise Act passed in 2006.
The law regulates how cable companies apply to provide service to an area, he said. Instead of applying directly to municipalities, cable providers must file an application with the Secretary of State for a statewide Certificate of Franchise Authority. After receiving notice from the Secretary of State’s Office that an application(s) has been filed, local government officials can decide whether to accept or deny the application. Proponents of the law explain this system of a statewide certificate encourages competition and choice.
The Act requires a company’s original franchise to expire before the Secretary of State can issue a statewide certificate. To avoid a time gap between the existing franchise agreement expiring and the new statewide certificate taking effect, the Secretary of State’s office now allows cable companies to begin the application process for the certificate 80 days before the original franchise’s expiration date. To avoid a lapse in certificate (which is illegal), Fender stressed the need for cities to communicate with its cable provider about expiration dates and the new application method.
Also new in the state, is AT&T U-verse TV and High Speed Internet services, an alternative to cable. AT&T U-verse integrates television, broadband and wireless services. The application process for U-verse will be the same as for other cable providers.
A lot of cities are still undercharging companies for the use of city-owned utility poles, said Fender. Cities that allow cable companies to use their utility poles should ensure the company is paying for the correct number of poles it is using. Also, the city needs to make sure the cable company has not added new connections to the pole without a fee adjustment.
The Competitive Cable Services Act also provided cities with new options, according to Fender. For example, instead of receiving franchise fees once a year, municipalities can opt to be paid quarterly.