Monday, December 7, 2015

A Philly company…it’s gonna cost ya!

Last week, the city of Philadelphia signed a 15-year franchise renewal agreement with Comcast.  The agreement allows Comcast to continue to use public rights-of-way to operate its cable system in the city of brotherly love.  What does the city get in return?  Plenty!
  • Franchise fee of 5% of Comcast’s gross revenue (>$17.5 million annually, expanded to include PEG and FCC fees)
  • Public, Educational, and Government funding of $21.3M (from $8.2M)
  • 11 PEG channels (including expansion of HD channels)
  • Expanded PEG VOD capacity from 8-hours to 20-hours.
  • $1M/year in complimentary services to municipal locations, schools, and libraries.
  • Institutional Network ($10M in network construction costs not billed to the City)
  • The expansion of Comcast's Internet Essentials program to include low-income seniors
  • Discounts of at least 10 percent for low-income seniors on cable service;
  • $500,000 grant to the city's Digital Inclusion Alliance Fund


Any problems for Comcast?  Maybe one!  The city of Seattle, currently in contract talks with Comcast, wants the same deal.

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