Competitive Cable Franchising
Is your community considering whether it should issue a competitive video franchise to a second video provider? If so, you're probably discovering that you have a lot to consider.
Of course, the first issue that springs to mind is the need to negotiate an agreement with the second provider. But other issues – often not as apparent – can soon begin to complicate your effort. For example, cable operators are often very reluctant to split their near-monopoly market with another wireline competitor. Consequently, cable companies can engage in a number of public and private campaigns designed to slow or destroy the competitive franchising process. In many places, state "level playing field" or "most favored nations" laws also have to be considered. Operational issues can often surface, too: For example, will the community's public, educational and government access channels appear on both operators' systems? Will the operators voluntarily "interconnect" to make that happen? These and many other issues make a competitive franchising process much more complicated and difficult than it may first appear.
Our cable and communications practice group possesses exceptional expertise in this area, and can help you navigate the competitive franchising process with ease. In the mid-to-late 1990s, attorney Jon Kreucher was responsible for franchising and competitive responses in one of the nation's most "overbuilt" areas: Southeast Michigan. During this period, Mr. Kreucher originated a number of strategies to respond to Ameritech's effort to gather cable franchises. These strategies included local franchising tactics, public campaigns, and operational efforts. Most of these plans continue to be employed by cable operators today. Local officials now leverage Mr. Kreucher's "insider's knowledge" to anticipate and defuse these cable operator responses and to minimize operational issues associated with the competitive franchising process.
We can help you identify and manage the challenges associated with a competitive franchising process. Call us at (248) 723-0426 or fill in the "Contact Us" section on the firm's homepage and we will be in touch with you soon.