Connect. DoITT.

Carole Post, Commissioner

2010 Cable Franchise Renewal Negotiations

Key Accomplishments

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 a
state-of-the art, redundant, city government-dedicated network capable of handling high-capacity voice and
data 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 secured
approximately $250,000 in seed funding.
Wi-Fi in City Parks – Approximately $10 million to fund construction of Wi-Fi infrastructure in selected
portions 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 three
years and moderate increase possible starting in year four). Fee waived entirely for TW/CV broadband
subscribers. 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 by
companies 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 revenue
by 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 “peak
year.”
If no early termination, term runs to July 2020 (same as Verizon).

III. “Innovative” Accomplishments

Broadband Access/ Multimedia Training

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 Connect. DoITT.
Carole Post, Commissioner

2010 Cable Franchise Renewal Negotiations

Key Accomplishments

Time Warner Cable will establish four community broadband access centers per year (40 total), in
collaboration with nonprofits, over life of franchise. Cablevision is working with DOE to provide broadband
services and/or school media centers.
Underserved Commercial Fiber Commitment
Time Warner Cable to install 20 miles of fiber per year in underserved commercial/industrial areas over
franchise term; and will build-out Brooklyn Navy Yard. Cablevision already serves the commercial blocks in
its service areas.
Targeting Buildings Designated by City
Companies will commit to expend $1.8m/year to bring fiber to commercial buildings of City’s choice
Wi-Fi in the Parks (see above)

IV. Public, Educational and Government (PEG) Channels Accomplishments

Educational/Governmental Channels: NYC Media Group

Proportional share of over $9M (in annual installments) + approx. $2M of “in-kind” services to be
determined in collaboration w/NYC Media.
3 additional channels (8 total) by 2012
High Definition Channel – One channel in 2011
Video on Demand – 25 hours
Public Channels
Community Access Organizations: Companies currently negotiating agreements directly with CAOs
5 additional channels (9 total) by 2012

V. Consumer Protection Achievements

Customer Service Standards – High Level Summary
Maintain at least current customer service standards through June 2012. (Note: these standards to be as
good, or better, than Verizon FiOS franchise standards, as requested by five BPs)
After June 2012, standards convert to new negotiated standards, closely reflecting Verizon FiOS
franchise standards.
Appointment Confirmation
Online appointment confirmation
Multi-device/phone confirmation when tech is en route
Upgraded Call Centers and New Service Center(s)
Call centers have been substantially upgraded, Time Warner has new customer service center opened
on 96th Street and Broadway.

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