HomeMy WebLinkAbout20013228 AT&T Broadband
8000 East Miff Avenue
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November 7, 2001
VIA US MAIL
Weld County Commissioners
Attn: Weld County Clerk
Weld County
915 10th Street, 3rd Floor
Greeley, Colorado 80631
Subject: Change in Franchise Fee Collection Methodology
Dear County Clerk:
As you are probably aware, the pass through to customers and itemization on customer bills of
franchise fee payments, in whole or in part, is a discretionary action on the part of cable
operators. We are neither prohibited nor required by law to do so. In particular, the previous
operator in your community, Comcast, followed.a policy of recovering from customers the
franchise fees paid on non-subscriber related revenues through a higher franchise fee
assessment on Basic Service.
We continued Comcast's practice after acquiring the franchise and cable system in your
community, as AT&T Broadband had not yet adopted its own methodology for recovering
franchise fees paid on non-subscriber related revenues through the franchise fee itemized on
customer bills.
On October 4, 2001, the Federal Communications Commission ("FCC") issued a Memorandum
Opinion and Order clarifying that cable operators may pass through to their customers and
itemize on monthly bills the entire amount of the franchise fee assessed by a local franchising
authority, including franchise fees paid on non-subscriber related revenues. The FCC's order
did not create any new authority for cable operators -- it only addressed disputed interpretations
of existing federal law.
As a result of this clear decision from the FCC, AT&T Broadband adopted its own methodology
for collecting from customers and itemizing on customer bills the full amount of the franchise
fees paid to your community, including those franchise fees paid on non-subscriber related
revenues, effective in January 2002. This methodology will replace that used by Comcast.
We have conservatively calculated that the new method for the recovery of franchise fees paid
on non-subscriber related revenues will actually result in decreasing the franchise fee collected
from customers on all services.
(704,56)/1/ air/7d /
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• Recycled Paper 2001-3228
Page 2
Customers will be notified of this change in the franchise fee calculation via a legal notice that
will be published in the Greeley Tribune on November 8, 2001. In addition, we will include a bill
message the month the change is implemented which states:
"Please note that your franchise fee has changed as a result of AT&T
Broadband's implementation of a clarification recently issued by the FCC
regarding franchise fees."
As always, please contact Wendy Farley at 303-603-5013 or myself at 303-603-5012 if you
have any concerns or questions regarding this issue.
Sincerely,
AT&T Broadband of Northern Colorado I, LLC I/k/a AT&T Broadband
MCA
Natalie Mihalek
Franchise Compliance Coordinator
C: Wendy Farley
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