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April 18, 2006
Anaheim vs. the Sacred Cow of Franchise Fees
As video franchise reform is debated in Congress and in state houses around the country, legislators seem keen on reaching compromises that retain a franchise “tax,” generally five percent, on video revenues. Even proponents of franchise reform seem to be resigned to accept the levy, despite that it is discriminatory, creates an unnecessary additional cost to broadband adoption, and stands to be more and more difficult to justify as alternate forms of video distribution using the Internet takes hold.
That’s why it was so refreshing to hear a city administrator call for outright abolition of franchise fees. In reply comments that received way too little coverage, Anaheim Mayor Curt Pringle outlined a several compelling reasons to do away with video franchise fees as part of an FCC inquiry into the restructuring of the video franchising scheme.
City leaders do not believe that government should determine whether residents receive video content through established cable providers, growing competition from satellite television, or new concepts coming on line like internet protocol television (IPTV), or technologies on the horizon like Wi-Fi delivery of video content. Anaheim is supportive of maintaining open market competition in which any franchise fee is eliminated for consumers and a variety of service providers have an opportunity to earn customer support.
The current franchise system inhibits additional companies who might be subject to it from entering the marketplace and investing in infrastructure when they are challenged by the expense and difficulty of attaining enough market share to recoup costs. At the same time, companies that are clearly exempt from franchising, like satellite providers, flourish.
Franchise fees and many elements within franchise agreements, therefore, are merely an artificial intrusion by government into the consumer marketplace. Attempts to apply franchise fees and agreements to some providers, while exempting others, effectively eschews the market.
Therefore, eliminating these fees and impediments, Anaheim contends, will allow equitable competition amongst the variety of video service providers. In this way, and without local government interference, the various systems compete in price, quality and quantity and consumers decide which service provider they prefer.
Pringle then goes on to demolish the bromides about the importance local control and franchise revenue that local governments continue to put forth.
The market has changed, Pringle asserts. And imposing arbitrary taxes on one group of competitors hurts consumers and limits choice. The full text of Pringle’s comments can be found here.
Posted by steve.titch at April 18, 2006 11:48 AM
I just don't have much to say recently. Such is life. I've basically been doing nothing. Basically nothing seems worth bothering with. Oh well.
Comment by: Sten22782 at January 25, 2007 02:04 PM
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I've just been staying at home not getting anything done. I've basically been doing nothing worth mentioning. My life's been pretty unremarkable these days. Eh.
Comment by: Sten7665 at January 26, 2007 08:21 AM
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I haven't been up to anything these days. So it goes. I can't be bothered with anything these days.
Comment by: Sten39773 at January 28, 2007 08:01 PM
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Not much on my mind lately. My life's been completely boring these days. I've just been hanging out not getting anything done. So it goes.
Comment by: Sten87435 at January 29, 2007 05:49 AM
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I feel like a complete blank, but I don't care. Pfft. I've pretty much been doing nothing worth mentioning.
Comment by: Sten79161 at January 29, 2007 03:34 PM
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I haven't been up to much lately. I've basically been doing nothing , but it's not important. I can't be bothered with anything recently. I've just been letting everything happen without me lately.
Comment by: Sten81176 at January 29, 2007 04:13 PM
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I feel like an empty room, but eh. Nothing seems worth doing. I haven't gotten much done today.
Comment by: Sten40674 at January 29, 2007 06:46 PM
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My mind is like a bunch of nothing, but I guess it doesn't bother me. I haven't been up to anything recently. I've pretty much been doing nothing to speak of.
Comment by: Sten91144 at January 30, 2007 12:34 AM
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I haven't been up to much today. I've just been letting everything happen without me. Basically nothing seems worth bothering with. I've just been hanging out doing nothing. I just don't have anything to say right now. More or less nothing happening.
Comment by: Sten66272 at January 30, 2007 05:47 PM
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My life's been pretty dull recently. Shrug. My mind is like a void. I haven't gotten anything done lately. I can't be bothered with anything recently.
Comment by: Sten75081 at January 31, 2007 07:18 AM
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I haven't been up to much lately. I've basically been doing nothing , but it's not important. I can't be bothered with anything recently. I've just been letting everything happen without me lately.
Comment by: Sten53202 at February 1, 2007 08:20 AM
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Basically nothing seems worth thinking about. I haven't been up to much these days. I just don't have much to say right now. I can't be bothered with anything , but whatever.
Comment by: Sten58020 at February 1, 2007 04:03 PM
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I've just been staying at home not getting anything done. I've basically been doing nothing worth mentioning. My life's been pretty unremarkable these days. Eh.
Comment by: Sten54693 at February 2, 2007 12:09 PM
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I can't be bothered with anything these days, but such is life. I don't care. So it goes. More or less nothing seems worth thinking about. I've just been hanging out waiting for something to happen, but that's how it is.
Comment by: Sten54295 at February 2, 2007 04:46 PM
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I haven't been up to anything these days. So it goes. I can't be bothered with anything these days.
Comment by: Sten48545 at February 3, 2007 01:16 AM
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Not much on my mind right now, but it's not important. I've just been letting everything happen without me. I just don't have anything to say right now.
Comment by: Sten53613 at February 3, 2007 07:38 AM
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I haven't been up to much lately. I've basically been doing nothing , but it's not important. I can't be bothered with anything recently. I've just been letting everything happen without me lately.
Comment by: Sten75860 at February 4, 2007 12:15 AM
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I just don't have anything to say right now. I haven't been up to anything recently, but it's not important. I've just been sitting around waiting for something to happen, but shrug.
Comment by: Sten90092 at February 4, 2007 08:38 PM
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I've more or less been doing nothing worth mentioning, but eh. My life's been really bland today. I don't care. I've just been letting everything happen without me these days. That's how it is.
Comment by: Sten83054 at February 5, 2007 12:35 AM
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I just don't have much to say these days, but so it goes. Today was a total loss. I guess it doesn't bother me.
Comment by: Sten3687 at February 5, 2007 03:13 PM
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I've just been staying at home not getting anything done. I've basically been doing nothing worth mentioning. My life's been pretty unremarkable these days. Eh.
Comment by: Sten38787 at February 6, 2007 08:11 AM
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I've just been staying at home not getting anything done. I've basically been doing nothing worth mentioning. My life's been pretty unremarkable these days. Eh.
Comment by: Sten38787 at February 6, 2007 08:11 AM
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