Press Release
Arizona cable legislation threatens public safety and local programming
Contact: Timothy Karr, 201-533-8838
Free Press, the national, non-partisan media reform group, warned today that two identical bills being introduced in the Arizona legislature would tie the hands of local governments in negotiating with monopoly cable providers across the state. They would strip millions from the budgets of local government and eliminate some of the state's only outlets for community programming.
HB 2653 and SB 1229 slash the "franchise fees" that cable companies pay to cities in exchange for being allowed to dig up city streets and profit from public rights-of-way. The bills are backed by the Arizona Cable Communications Association - the state lobbying arm for Comcast, Cox, Adelphia and Cable One - which claims it will pass the savings on to consumers.
"The cable companies promise this legislation will lower your monthly bills," said Josh Silver, executive director of Free Press. "Don't believe it. Cable prices only go in one direction - up, up and up some more. This legislation is simply a cynical effort to pad the industry's profit margins at the public's expense."
Currently, most cable providers pay cities 5 percent of gross revenues, the level mandated by federal law. But the so-called "Cable Consumer Tax Reduction Legislation" would cap the fees at 1 percent plus a city's sales tax. The cable companies would pocket millions of dollars that now support city services - meaning less money for police, fire fighters and public safety.
The bills would also bar Arizona cities from having more than two Public, Educational and Governmental (PEG) channels - and would subtract the cost of operating these outlets from the already reduced franchise fees. In doing away with even these modest existing public interest obligations, the bills would almost certainly force community channels off the air. Tuscon, for example, negotiated for nine PEG channels from Cox in exchange for its monopoly on cable TV in the city.
"Make no mistake, these bills have national ramifications," said Russell Newman, Program Manager for Free Press. "Telecommunications and cable companies across the country are eager to eliminate the need to negotiate with local communities as they build out their networks. If this legislation becomes law, we will be sure to see more like it elsewhere. We hope Arizona will reject these bills and show that local control and community voices are more important than lining the pockets of media moguls."
HB 2653 and SB 1229 slash the "franchise fees" that cable companies pay to cities in exchange for being allowed to dig up city streets and profit from public rights-of-way. The bills are backed by the Arizona Cable Communications Association - the state lobbying arm for Comcast, Cox, Adelphia and Cable One - which claims it will pass the savings on to consumers.
"The cable companies promise this legislation will lower your monthly bills," said Josh Silver, executive director of Free Press. "Don't believe it. Cable prices only go in one direction - up, up and up some more. This legislation is simply a cynical effort to pad the industry's profit margins at the public's expense."
Currently, most cable providers pay cities 5 percent of gross revenues, the level mandated by federal law. But the so-called "Cable Consumer Tax Reduction Legislation" would cap the fees at 1 percent plus a city's sales tax. The cable companies would pocket millions of dollars that now support city services - meaning less money for police, fire fighters and public safety.
The bills would also bar Arizona cities from having more than two Public, Educational and Governmental (PEG) channels - and would subtract the cost of operating these outlets from the already reduced franchise fees. In doing away with even these modest existing public interest obligations, the bills would almost certainly force community channels off the air. Tuscon, for example, negotiated for nine PEG channels from Cox in exchange for its monopoly on cable TV in the city.
"Make no mistake, these bills have national ramifications," said Russell Newman, Program Manager for Free Press. "Telecommunications and cable companies across the country are eager to eliminate the need to negotiate with local communities as they build out their networks. If this legislation becomes law, we will be sure to see more like it elsewhere. We hope Arizona will reject these bills and show that local control and community voices are more important than lining the pockets of media moguls."
