Frequently Asked Questions About the Cable Franchise Negotiations in Troy, NY.

• What are cable franchise negotiations?

• What can citizens receive?

• Shouldn’t politicians be worrying about things like safety and clean streets?

• What is this I-NET I keep hearing about? Can I use it?

• How are things going so far?

• Any problems?

• What will it cost the citizens of Troy?

• Who is making the money?

• Where will the money come from to accomplish these goals?

• So it won’t cost us anything and it benefits everyone regardless of their politics or background. If this is as great as you make it sound, why don’t we already have it?

What are cable franchise negotiations?
This is essentially a real estate deal. The cable contract between the City of Troy and Time Warner spells out what the citizens will receive in exchange for allowing the cable company to use public property (streets, sidewalks, etc) for their very profitable business.

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What can citizens receive?
Basically, access to media technology and tools as well as connectivity.
(1) Government, city and community organizations will be able to better promote themselves and reduce costs for website development, posters, features on their programs, taking out equipment, databasing and archiving information, training and so on by having access to the Community Television and Technology Center.
(2) The public schools and government buildings could see significant savings for Internet, telephone and other connectivity. The City can negotiate for an I-NET which connects the "last mile," costs which would be prohibitive if this contract is not realized. Increased fiber and connectivity will attract businesses that want to move to Troy but cannot because the City does not currently have a robust telecommunications infrastructure.

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Shouldn’t politicians be worrying about things like safety and clean streets?
As we enter the 21st century, Information technology tools are essential to build strong and safe communities. This is not just about cable TV. It is now about delivering “data” in any form. Cable companies are not only providing internet access, but they are also beginning to move into local and long distance telephone services. All of this makes the stakes during franchise renewal much higher than in the past. The key is to recognize that the Media Center and I-NET are tools in the "tool box" necessary to help the City more effectively deal with real, "bread and butter" issues. If the City of Troy is successful in its negotiations, we could see:

• Police cars with wireless transmitters connecting to the I-NET (Institutional Data Network) to access data, files and information at police headquarters’ computers
• Public Safety information from the Police and Fire Departments on TV
• Neighborhood Watch Trainings, Fire Safety, and Crime-Stoppers programs
• TV programs featuring history and historical neighborhoods and preservation
• Televised schedules of City Services such as garbage pick-up, snow removal, etc.
• After-School Homework Helpline programs to assist youth with math, science, and reading
• Programs promoting City programs and educating citizens on their benefits
• The list goes on... it's up to you!

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What is this I-NET I keep hearing about? Can I use it?
An I-NET (which stands for institutional network) is just a fancy word for a very high speed computer network. It interconnects municipal buildings (City hall, police and fire stations, libraries, schools, etc) so that they can share voice, video and data--usually getting much better connectivity at a lower price than they would otherwise. The combination of an I-NET with the public, education and government access channels on the cable systems makes it possible to originate live television programming from locations throughout the community. The non-profit I-NET often functions in conjunction with a for-profit MAN (municipal area network) to bring affordable high speed Internet access to local businesses.

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How are things going so far?
So far, so good! After more than seven years of hard work, the City of Troy is positioned to make community media a reality for local residents. With the guidance of one of the top municipal cable consultants in the country, the City has carefully followed federal and state laws governing franchise negotiations. It has taken lots of money and effort (including thousands of hours of volunteer work by local citizens), but now Troy is poised to set a new standard for the public/private partnership represented by a cable franchise.

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Any problems?
Yes. Time Warner has been stalling, trying to drag out the cost and duration of negotiations. But the City of Troy has followed federal and state laws to the letter—and is in an excellent negotiating position. It’s time to turn up the heat. Our elected officials need to hear how important the issue of community television and state-of-the-art technology is to their constituents. Let’s not let them be bullied into signing a lousy contract!

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What will it cost the citizens of Troy?
NOTHING. This will not cause your cable rates to increase. By law, the City has no ability to limit Time Warner’s fees. As an unregulated monopoly, Time Warner can charge as much or as little as it wants. Basic cable rates in Troy have increased about 40% over the last 2 years. These increases have gone directly to Time Warner, with little benefit to the community. Communities that have negotiated for a Community Television and Technology Center do not necessarily have higher or lower rates than other communities.

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Who is making the money?
Time Warner has bought up the region, coming in from the outside and making a huge profit while not being forthright about what they legally owe the citizens of Troy. The franchise contract in Troy will bring Time Warner at least $300-400 million over the next 10 years! The contract negotiation will result not only in Community Access TV, but a higher franchise fee (rent) being paid to the City of Troy by Time Warner.

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Where will the money come from to accomplish these goals?
The City of Troy has a contract with Time Warner Cable that is based on a contract negotiated 36 years ago. It expires December 2004. The contract lays out the terms for the cable company’s use of Troy’s streets and right-of-ways. By federal law, for the use of the public rights-of-way, the City can require that Time Warner pay the City up to 5% of gross cable revenues as rent (called franchise fees), and provide capital funding for equipment and facilities to support a community media center and a network connecting public, educational, and government buildings. The City currently charges Time Warner a 5% franchise fee; that money is used for the general fund. This rent has not increased since 1987. The City can also negotiate for additional resources and funds above the franchise fee to support community media and technology services.

Time-Warner generates a significant amount of money from its cable system in Troy because it provides not only cable TV services but also Internet access services and collects additional revenue from advertising, home shopping, and other sources. As Time-Warner expands its service offerings into local and long distance telephone, it will generate even more revenue from this contract.

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So it won’t cost us anything and it benefits everyone regardless of their politics or background. If this is as great as you make it sound, why don’t we already have it?
It could be as simple as the fact that we don’t miss what we’ve never had!

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