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1. When will Verizon FiOS be available in my area?

The town’s franchise agreement states that all homes that fall into an area that meets a density requirement of 20 homes per mile will be offered cable service within 5 years of the effective date of the franchise. According to Verizon, they continue to meet the build out timeline contained within Exhibit A of the franchise agreement. They will not provide the town with specifics as to their build out plan.

2. My rates are too high, can you help me?

State and Federal Law provide the town with no ability to regulate rates. The cable company will often work with customers as a means of retention. Contacting customer service will often lead to enticing offers.

3. My old cable provider offered a senior discount, how do I get one?

Neither Spectrum nor Verizon FiOS offer a discount to senior subscribers. This decision was not one that the town was in agreement with, but it was nonnegotiable at the time the agreements were finalized.

4. When the town’s agreements expire, can you compel Spectrum and Verizon to provide bill relief?

There are a couple of reasons why this would be impossible. The first relates to “level playing field” rules. When the Verizon contract expires in 2021, they cannot be compelled to be at a financial disadvantage to Spectrum whose agreement doesn’t expire until 2024. Both contracts must be comparable in terms of requirements on the cable provider. The second is that towns do not have the leverage that one might expect in a renegotiation situation. The plant is built and customers are already serviced. Should the town attempt to deny service to a cable provider, thousands of residents/customers could lose service. Since that can’t happen, the town is over a barrel. The cable provider understands this, as does the NYS regulatory authority, the Public Service Commission (“PSC”). If the Town can’t come to a resolution with the cable provider, a Temporary Order of Authority (“TOA”) is issued every 6 months by the PSC until a new agreement can be worked out. We have seen TOAs issued for over 20 years to one municipality.

5. What is a franchise fee?

The cable television franchise fees represent part of the compensation a community receives in exchange for the cable operator's occupation and the right-of-way use of public property. A franchise fee is not a tax; it is a rental charge.

Franchise fees are governed under Section 622 of the Cable Communications Act of 1984. Section 622 states that municipalities are entitled to a maximum of 5% of gross revenues derived from the operation of the cable system for the provision of cable services including, but not limited to, pay channels, pay per view programs, and basic, standard, and digital tiers of service.