This morning the U.S. Court of Appeals for the Sixth Circuit turned down a petition by the Alliance for Community Media, Alliance for Communications Democracy, NATOA, National League of Cities, National Association of Counties and the U.S. Conference of Mayors, and by other PEG organizations, local governments and cable operators seeking to overturn regulations adopted by the FCC in March 2007 designed to ease the ability of telephone companies to get cable franchise.
The decision represents a loss for the public interest served by PEG and local franchising. While the decision affirms the FCC’s finding that capital costs required by a franchise to be paid for PEG access facilities are exempted from the definition of franchise fees (as to which a maximum 5% of gross revenues can permissibly be charged), the court makes clear that such capital costs are not limited to the construction of facilities but may also include equipment. The court’s decision also makes clear that nothing in the FCC’s order prevents local franchise authorities from increasing PEG obligations upon renewal of incumbent franchises.
Here is a link to the court’s decision: http://www.ca6.uscourts.gov/opinions.pdf/08a0230p-06.pdf.
