The Commission's proposed order implements the statutory limits on LFAs in four key respects:
1) By including
"in-kind" contributions charged by LFAs in exchange for video franchises within the 5% cap on franchise fees;
2)
By concluding that the regulatory jurisdiction of LFAs over video franchising cannot be used to regulate most non-cable services provided over "mixed-use" cable networks, including broadband Internet access services;
3) By preempting any LFA-imposed fees or taxes on cable operators that exceed the Section 622(b) cap as well as any franchising requirements for providing non-cable services through cable networks; and
4) By
applying limits regarding LFA actions at the state level and to state regulatory requirements on local franchising.
Free State Foundation President Randolph May and I have previously written about the Commission's Section 621 proceeding and its proposed order in
reply comments
submitted to the FCC, which the agency cites in its draft order, and also in a
pair
of blog
posts
. We urged the Commission to shore up its "in-kind" contribution and "mixed-use" rules and to expressly apply limits on LFAs to the state-level franchising authorities.
The Commission's proposed Section 621 order is important, and it is commendable. It is faithful to the law, it will keep LFA and state-level franchising actions within proper boundaries, and it's hospitable to encouraging investment and deployment of next-generation broadband services.
