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t '3 Fri Etri L} l 5.1 :1, l 5; C! H T C! N 5

ff Joint Standing Committee on Energy, Utilities and Technology P‘

r

i Testimony of

E LD1371, An Act To Ensure Nondiscriminatoly Treatment of Public, Educational and Governmental Access Channels by Cable System Operators

4/10/19

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Chairman Lawrence, Chairman Berry, and members of the Energy, Utilities and Technology Committee, my K

l name is Melinda Kinney with Charter Communications and we oppose LD1371.

Charter Communications serves 414,000 customers in 291 communities, we have negotiated franchise agreements in each of these municipalities. In fact, we pay over $8.6M a year in franchise fees and capital costs

to our Maine communities, all of which can be used for the operation of PEG Access channels in Maine if the

communities so choose. These local channels are unique to the cable industry and are only offered on cable, ,. ii

it other multichannel video providers (DISH, Direct TV) and over-the-top providers (DirecTV Now, Hulu, YouTube E Live) choose not to offer these channels and are n_ot required to do so. Approximately 15% of the communities Charter sen/es have decided to take on the additional expense to offer Public Access programs to their residents but the remaining 85% elect not to require the additional costs. Most recently there has been a trend for communities to fund streaming of their meetings online through use of general funds.

Under Federal law, there are two options for the renewal of cable franchises, formal and informal. The formal process is a drawn out, costly process for both a community and the cable operator. As such the formal process is rarely invoked and franchises are negotiated through the informal process.

The informal process involves a back and forth negotiation of the terms and conditions of the franchise taking into account associated costs, which include the burden on both the cable operator and community residents who subscribe to cable service. Over the past two years Charter has negotiated over 80 franchises in Maine through the informal process, working one on one with each community.

What this legislation proposes to do is usurp informal negotiations by unilaterally attempting to impose conditions

in violation of federal law. 2 E

‘ Among the provisions that violate Federal law are:

(1) The unilateral imposition of terms, e.g., a homes per mile build out requirement; personnel and staffing, and reporting requirements;

(2) The requirement that PEG channels are carried in the same manner and numerical sequence as local broadcast channels;

(3) The unilateral attempt to usurp the renewal process by prohibiting a cable operator from modifying or amending the model franchise agreement without the consent of the municipality.

(4) Conflating the definition of a local unit of government with an entity “designated” to run PEG access thereby attempting to circumvent the role of local government in making decisions related to the franchise and PEG operations.

l (5) Requiring the carriage of PEG channels in HD, municipalities cannot dictate transmission technology. (Section 624(e) of the Cable Act, 47 U.S.C. § 544(e), which provides that “[n]o State or franchising s § authority may prohibit, condition, or restrict a cable system’s use of any type of subscriber equipment or any transmission technology. ’)

The spirit of LD1371 seeks to protect the PEG stations. We agree that PEG stations sen/e a specific and relevant

roles within the communities that decide to host a station. But this bill, LD1371 disrupts a negotiation process with unrealistic requirements that will not serve the municipality or the provider. LD 1371 violates federal law and Charter will vigorously oppose the imposition of any of the above requirements

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2 SPECTEUM HD CHANNEL l.?lNEUP° 2 f Spectrum» Augusta February2019 1

TV PACKAGES 488 Shop Zeal 5 303 ESPN Classic 945 EWTN en Espafiol 2 489 Shop Zeal 2 307 MLB Strike Zone 946 TBN Enlace USA SPECTRUM BASIC 490 Gem Shopping Net 311 NFL RedZone 962 AyM Sports 492 Liquidation Channel 312 NHL Network 971 Cinelatino 1 (Includes Dlg'1alM\islcchannels 627 IFC 371 ESPN GoalLn/BasesLd 972 Cine Mexicano andthe following services) 372 FCS Atlantic 979 De Pellcula Clasico

— SPECTRUM TV SILVER 373 FCS Central 980 De Pelicula é 2 CKSH IND F 3 WPXT ~ MeTV 374 FCS Pacific 982 ViendoMovies (Includes Spectrum 1V Select 4 WPFO A FOX 375 PAC~l2 Network 983 Ultra Mex S WABl~CBS and the lollowing channels) 376 PAC-12 Los Angeles 984 Ultra Cine - 377 PAC-‘I2 Arizona 985 Ultra Clasico 6 WCSH NBC Digi Tier1 8 WMTW - ABC 378 PAC-12 Washington 10 WCBB - PBS 23 GAC 379 PAC-12 Oregon MI PLAN LATINO 42 TCM 12 WPXT ~ The CW 380 PAC-12 Mountain Disney Junior (|11€lUd!$$l>€€1I1I1l1 TV Basic, Latino 13 WGME ~ CBS B8 381 PAC-12 Bay Area View and the lollowingservices) 16 CHLT< IND 89 Nick Jr. 382 BTN - 19 C

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