NW-AR.COM Wiki | TelecomWatch / CoxSnow

This article in the Nortwest Arkansas Times reflects Cox's seriously misleading statement about the Cox cable fees paid by Elkins (and Fayetteville), which are not "taxes" , as claimed by their representative. (If the fees were taxes, everyone in Elkins would be paying them, not just the Cox subscribers.) Similar scare tactics and "philanthropic" moves are often used by Cox and other providers to sidestep the more stringent and community friendly FCC regulations. Keep tuned for a more detailed account.)

Contract extension won’t result in snowy TVs ?

BY KIRK KRAMER Northwest Arkansas Times

Posted on Thursday, February 10, 2005

URL: http://www.nwanews.com/story/nwat/25212

Although the franchise agreement between the city of Elkins and Cox Cable expires Friday, Cox customers in Elkins needn’t worry that their cable access will be cut off. "The worst case scenario for Elkins is that some franchise fees are at risk, but that’s good news for the citizens of Elkins, because it’s a tax they don’t have to pay," said Cox’s James Anderson.

For the next three months, anyhow. That’s the length of the extension to the old contract sought by aldermen so they can renegotiate the city’s agreement with the cable provider.

Ron Bamberg, a new member of the City Council with extensive telecommunications experience, including a stint with British Telecom during which he was responsible for the company’s regulatory affairs in North America, said the city’s original 1990 ordinance creating a contract with Cox is outdated. "[The three-month extension] doesn’t reflect any dissatisfaction with Cox, but just a need to include current technology and services that are provided," said Bamberg. "In 1990, no one contemplated Internet service over cable TV. It makes no sense to take an ordinance written before the technological changes and just carry forward with it. We need to improve the definitions of what services are provided over the network."

Some Elkins citizens want the council to ask Cox for continued access to Fayetteville’s public access, education and government (PEG) channels as part of an updated contract. Other voices have called for Elkins to have its own public access channel. "If you ask for a PEG channel, you need to be able to take advantage of it, which I’m not sure we can do," said Bamberg. "If we can’t take advantage of it, maybe something can be provided in lieu of that, like services to our schools, library and city facilities. That may need to be written into the ordinance."

Anderson, director of public relations and government affairs for Cox in Northwest Arkansas, did not hold out much hope of that happening.

Free or discounted Internet service for the library and other city offices are typically offered by Cox in an effort at good corporate citizenship, according to Anderson. "We would rather not agree to put that in the franchise agreement," he said. "It takes away the goodwill of the gesture. Cox does a lot of philanthropic endeavors in the cities we serve."

Anderson thought it unlikely continued access to Fayetteville’s PEG channels would be offered to Cox customers in Elkins. "I don’t think Fayetteville’s PEG channels are an option. If Elkins wants their own public access channel, we could discuss that in negotiating a franchise agreement."

The 5 percent franchise fees on cable service that Elkins customers pay the city are charged only on cable television service. Anderson said federal law prohibits taxes on access to Internet service.

The collection of the franchise fees by Cox for the city will be suspended on Friday, and until the city and Cox ink a new contract. "If no active ordinance is in place, we don’t have legal grounds to collect franchise fees from customers," said Anderson.

Cox collects franchise fees from Fayetteville customers because the contract between Cox and the city of Fayetteville has been indefinitely extended.

Anderson said that he does not have the authority to grant Elkins a three-month extension of its contract. He said that as soon as he receives a written request for the extension from Ladyman, he will forward it to corporate officers for action.