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DoITT Cable Franchise Key Accomplishments

DoITT Cable Franchise Key Accomplishments

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Published by Dana Spiegel

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Published by: Dana Spiegel on Sep 14, 2010
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01/25/2011

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Connect. DoITT.
Carole Post, Commissioner
 
2010 Cable Franchise Renewal NegotiationsKey Accomplishments
9-14-10
I.
 
Revenue Accomplishments
Franchise Fee
Five percent of gross cable revenues (maximum allowable under federal law)
Institutional Network (I-Net) Fund 
More than $20 million, immediately payable at franchise start, to help finance the upgrade of CityNet as astate-of-the art, redundant, city government-dedicated network capable of handling high-capacity voice anddata applications (including NYCWiN feeds, other pictures and videos, VoIP, etc.)
Other Revenue Sources
NYC/TV -
More than $9 million to fund the NYC Media Group’s capital (plant & equipment) upgrade. (See
PEG Accomplishments, below)EDC Media Lab -
More than $1.5 million to fund EDC’s “Media Lab” initiative (see Mayoral press release/EDC
portal for a description of the Media Lab). Prior to this commitment, the Media Lab had securedapproximately $250,000 in seed funding.Wi-Fi in City Parks
 –
Approximately $10 million to fund construction of Wi-Fi infrastructure in selectedportions of approximately 32 parks in all five boroughs. Service to be completely free to all for up to three(3) monthly sessions of 10 minutes each, with a small fee thereafter (99 cents/day, price fixed for threeyears and moderate increase possible starting in year four). Fee waived entirely for TW/CV broadbandsubscribers. Parks to be determined by cable companies and City in consultation with borough presidents.
 
Buildouts to be substantially completed within two years of franchise approval and to be maintained bycompanies through 2020.
II.
 
“Revenue Protection” Accomplishments
 
Expiration/Termination
City option to terminate early if revenues shift significantly toward Internet instead of cable. This
innovative provision, the only one of its kind that we’re aware of, helps protect
City franchise revenueby enabling the City
to renegotiate if there is substantial shift in content delivery from cable to “new”
and/or emerging technologies.Termination option triggered by 22.5% reduction in franchise revenue
receipts as compared to “peakyear.”
 If no early termination, term runs to July 2020 (same as Verizon).
III.
 
“Innovative” Accomplishments
 
Broadband Access/ Multimedia Training
 

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