National efforts to allow local governments to charge broadband franchising fees to cable companies

Posted on by

Last legislative session, there was a bill (the MN Equal Access Bill) that set out to allow local governments to charge cable companies a franchising fee for their broadband services. The bill got support from a number of local governments, but not from providers. In the end it did not pass. Broadband Breakfast reports on national efforts to open the door to local government fees from cable providers…

Cities across the country want to impose new fees on cable operators, claiming a federal rule standing in the way has distorted the market and frustrated efforts to close the digital divide.

For decades, local governments have been able to collect 5% of a cable operator’s video programming revenue. But the Federal Communications Commission has barred imposing the same fee on cable’s broadband revenue, saving the industry billions a year.

Local governments continue to pressure the FCC to abolish its Mixed-Use Rule, which the FCC reaffirmed in 2019 as walling off cable’s broadband revenue from the traditional video fee regime.

The latest salvo in this struggle came in a June 5 letter to the FCC from the Northern Dakota County Cable Communications Commission (NDC4), which was formed by seven small Minnesota cities with about 91,000 residents combined.

“The Mixed-Use Rule frustrates FCC and local efforts to ensure equitable access to quality, affordable broadband,” the NDC4 said in the letter. “We urge the Commission to repeal it.”

NDC4 includes Inver Grove Heights, Lilydale, Mendota, Mendota Heights, South St. Paul, Sunfish Lake, and West St. Paul, Minn.

This entry was posted in Cable, Policy, Vendors by Ann Treacy. Bookmark the permalink.

About Ann Treacy

Librarian who follows rural broadband in MN and good uses of new technology (blandinonbroadband.org), hosts a radio show on MN music (mostlyminnesota.com), supports people experiencing homelessness in Minnesota (elimstrongtowershelters.org) and helps with social justice issues through Women’s March MN.

2 thoughts on “National efforts to allow local governments to charge broadband franchising fees to cable companies”

  1. First, it should be noted this is a fee which will be passed through to the customer as a line item on the ISP’s bill. Second, explain to me how making a broadband bill 5% more expensive will bridge the digital divide. This is a horrible idea. The two hurdles to bridging the digital divide are providing access in very expensive places to build, and affordability. A franchise fee on broadband solves neither of these.

    Reply ↓

    • It is interesting to see where this effort gets support and where it doesn’t. It didn’t get enough support in Minnesota to pass.

Leave a Reply