Office of Telecommunications
Franchise Provisions Summarized
This document summarizes the provisions in the cable franchise agreement. For the complete franchise agreement, please return to the OTC homepage and click on the link to the document.DRAFT CABLE FRANCHISE GENERAL PROVISIONS
TERM:
10 years, beginning January 1, 2000Extended to 15 years if upgrade complete within 3 years
NON-EXCLUSIVE:
City may grant other cable franchises as appropriate, on equal terms
PAYMENT TO CITY:
Provides maximum compensation under law of 5% of gross revenues from cable services (franchise fee)
INDEMNIFICATION:
Company must fully indemnify the City for all matters under the franchise conducted by or for the Company
INSURANCE:
- $5,000,000 commercial general liability
- $3,000,000 commercial automobile liability
- $1,000,000 employer’s liability
SECURITY:
- $100,000 letter of credit
- $1,000,000 payment and performance bond
FREE SERVICE:
- Free Basic and Expanded Basic to City buildings, K-12 accredited public and private schools, and public libraries
- Free cable Internet service to K-12 accredited public schools and public libraries
EMERGENCY ALERT CAPABILITY:
City may override all audio and video channels in the event of an emergency
UPGRADE
TIMEFRAME:
Maximum of 4 years to complete entire upgradeTerm is increased to 15 years if upgrade complete within 3 yearsActivation will occur on a phased basis, over a period of approximately 18 months
NEW SERVICES:
- Expansion of bandwidth to 750 MHz allows for up to 145 analog and digital channels
- Two-way activation allows for launch of @Home cable Internet service
- Upgrade will include system improvements necessary to launch local telephony service
- Use of fiber optics will increase system reliability and the quality of pictures
UNIVERSAL SERVICE:
- All Denver residents will have the same access to the services once the upgrade is complete
STATE OF THE ART:
- Every three years, Company must provide the City with information on services provided in 10 largest cable system owned and operated by the Company or its affiliates
- If services are offered in 5 of these communities but not in Denver, City can require that services become available on a schedule that takes into account the impact on rates, recovery of related costs, and the financial condition of the Company
PROGRAMMING
The franchise requires the following categories of programming:
- EDUCATIONAL
- COLORADO NEWS, WEATHER AND INFORMATION
- SPORTS
- GENERAL ENTERTAINMENT (INCLUDING MOVIES)
- CHILDREN/FAMILY-ORIENTED
- ARTS, CULTURE AND PERFORMING ARTS
- FOREIGN LANGUAGE
- SCIENCE/DOCUMENTARY
- NATIONAL NEWS, WEATHER AND INFORMATION
- PROGRAMMING ADDRESSED TO DIVERSE ETHNIC AND MINORITY INTERESTS IN THE CITY
- NATIONAL, STATE, AND LOCAL GOVERNMENT AFFAIRS
- PUBLIC, EDUCATIONAL AND GOVERNMENT ACCESS
- LOCAL AND REGIONAL PROGRAMMING
- PROGRAMMING OF INTEREST TO THE ELDERLY POPULATION
RATES
AUTHORITY:
City retains full regulatory authority allowed by law
NO DISCRIMINATION:
All rates must be uniform
NO CROSS SUBSIDIZATION:
Company is not allowed to increase the rate of regulated Basic Service to offset the costs of providing more advanced services
PUBLIC, EDUCATIONAL AND GOVERNMENT
ACCESS PROGRAMMING
OPERATIONAL SUPPORT (proposed):
$500,000 per year