Cox Cable and the $700,000 Hole in the Budget

[Bill Call]

In the lightspeed post Jim O'Bryan stated:

Right not COX has slowed down I-net to schools and the library, stopped franchise payments to Lakewood. While unlike COX, it would indicate they plan to go ahead with the lawsuit and dropping the $700,000 in FREE services to the city.

No worry AT&T has promised up to $14,000 in legal help.

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In the olden days if a City facing a $3,000,000 budget deficit lost $700,000 in franchise revenue it would be considered news.

Has the City lost that revenue stream? If not, is it in danger of losing that revenue? And if either of those things are true why isn't it news?

[Kenneth Warren]

Jim:

After some delay, Cox has performed the hook-up at the new Lakewood Public Library site to the I-Net.

I appreciate the service.

Kenneth Warren
Director
Lakewood Public Library

[Jim O'Bryan]

Bill

Let's get this one straight.

Because of the contract with AT&T, Cox is claiming their contract is void.

COX supplies the schools, library, city hall with fiber optics and a host of services for FREE. COX also supplies Lakewood High with a TV studio in the high school, and the City with Channel 74 FREE.

The value of this and other service to Lakewood is rumored to be between $300,000 and $500,000 including the franchise fee. New added features in the market with other FREE service in Lakewood, BECK, Observer, Car Show, etc bring the value of FREE extras to about $700,000.

This is not money paid by anyone, all of it could be pulled because of the COX contract which calls for FAIR and EQUITABLE contracts with other providers. Little things, like having to remove equipment and maintain it. Franchise fees. Pitching in and helping the library, schools and city. Plans to help all afford and receive services (we have not found any boxes to service Birdtown).

AT&T likes to sue with the thought, "We are a phone company, which offers Internet and TV, so we do not have to pay license fees. COX on the other hand is a CABLE TV company that just happens to have phones and Internet." I think most of us can work through this one.

Another interesting peace of the puzzle is the state moving to regulate all of this. This would allow the states to handle the franchise fees and licensing. One rumor was the city was trying to beat this, to get the most out of AT&T that they could! Doesn't matter, we did not get anything.


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