SaveAccessTVWisconsin - Myths and Facts

Exploding the myths telephone companies want you to believe... Myth: Act 42 allows current franchise agreements to remain in force where there is still only one video provider. The state franchise bill terminates all local franchise agreements. Cable would no longer be required to provide any support for PEG channels as agreed upon. No video provider would be required to serve a whole community. The low cost basic cable service tier would be deregulated and could be eliminated. Myth: Everyone subscribes to cable, right? In 2005, according to the Cabletelevision Advertising Bureau, 66% of homes with television subscribe to a land-line cable television service. Another 18.7% subscribe to satellite TV. 15.3% of households do not subscribe to either, simply getting their news and entertainment from over the airwaves - broadcast television. Myth: Act 42 will not hurt local communities and access channels are preserved. As passed this legislation may force access channels off the cable line-up because of, the added expense of paying for transmission equipment, and the elimination of PEG fees. Communities will lose gavel to gavel coverage of council meetings, in-depth discussions of local issues, coverage of school sports and more. Community-based low-cost television will not be around to promote the causes of non-profit organizations or to showcase our old fashioned downtowns. Myth: AT&T will carry access channels at the same technical quality as cable does now. AT&T's video streaming solution for the carriage of access channels will, the company admits, not meet broadcast technical standards. Act 42 does not require operators to carry access channels at any technical standard. Unfortunately, as consumers begin buying more and more high definition television sets to see the new FCC standard of signal quality, access channels will be looking more like Cinderella. Myth: Local governments will still help resolve cable complaints. Under Act 42, the Wisconsin Department of Financial Institutions becomes responsible for cable and video providers. Complaints would be made to the state. Although currently as written, the law does not provide this department with any regulatory tools to oversee the area, amendments may introduce a greater level of oversight. To fulfill its role, the department says it would need to hire additional people experienced in the video regulatory field. Myth: Eliminating local cable franchises will drop cable TV and phone prices. Cable, satellite, and phone companies charge the highest rates the market will allow. At least four providers are needed to lower rates. These companies know that if they start competing on price, they'll only be harming their own profit margin. Price "agreements," not competition, will be the rule. Reputable studies have shown this to be the case. Myth: The franchise fee is a tax. Cable operators are charged a 5% fee on gross revenues to use public property - our streets. Stores that lease space in malls pay a similar fee to mall owners. It is a reasonable cost of doing business. This fee goes into the general fund, where it lessens what we all pay in property taxes. If video providers pay a reduced fee, as is called for in Act 42), our property taxes would go up. Myth: Satellite services have an unfair competitive advantage. Community-based cable companies offer something satellite will never be able to: local homegrown programming. Yes, cable companies have the expense of paying cities rent for use of streets, but in return, these companies are able to provide local programming that is unavailable to satellite subscribers. This is a great marketing advantage. Cable still far outpaces satellite, serving 61% of households. Myth: Public, Educational and Government Access (PEG) channels are too costly. Some cities negotiate additional funding for PEG channels. Typically, this fee is less than a dollar. Some cities use all or part of the franchise fee to fund these channels. PEG channels are one of the greatest deals there are. With small staffs and a lot of volunteers, these stations provide communities with an amazing amount of programming. Myth: Broadband will be more available without local franchises. Most of the broadband available today is part of cable TV systems. This broadband is likely to be LESS available without local franchises because cable and telephone companies would no longer be required to serve the entire community.
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Exploding the myths telephone companies want you to believe...

Myth: Act 42 allows current franchise agreements to remain in force where there is still only one video provider.
The state franchise bill terminates all local franchise agreements. Cable would no longer be required to provide any support for PEG channels as agreed upon. No video provider would be required to serve a whole community. The low cost basic cable service tier would be deregulated and could be eliminated.

Myth: Everyone subscribes to cable, right?
In 2005, according to the Cabletelevision Advertising Bureau, 66% of homes with television subscribe to a land-line cable television service. Another 18.7% subscribe to satellite TV. 15.3% of households do not subscribe to either, simply getting their news and entertainment from over the airwaves - broadcast television.

Myth: Act 42 will not hurt local communities and access channels are preserved.
As passed this legislation may force access channels off the cable line-up because of, the added expense of paying for transmission equipment, and the elimination of PEG fees. Communities will lose gavel to gavel coverage of council meetings, in-depth discussions of local issues, coverage of school sports and more. Community-based low-cost television will not be around to promote the causes of non-profit organizations or to showcase our old fashioned downtowns.

Myth: AT&T will carry access channels at the same technical quality as cable does now.
AT&T's video streaming solution for the carriage of access channels will, the company admits, not meet broadcast technical standards. Act 42 does not require operators to carry access channels at any technical standard. Unfortunately, as consumers begin buying more and more high definition television sets to see the new FCC standard of signal quality, access channels will be looking more like Cinderella.

Myth: Local governments will still help resolve cable complaints.
Under Act 42, the Wisconsin Department of Financial Institutions becomes responsible for cable and video providers. Complaints would be made to the state. Although currently as written, the law does not provide this department with any regulatory tools to oversee the area, amendments may introduce a greater level of oversight. To fulfill its role, the department says it would need to hire additional people experienced in the video regulatory field.

Myth: Eliminating local cable franchises will drop cable TV and phone prices.
Cable, satellite, and phone companies charge the highest rates the market will allow. At least four providers are needed to lower rates. These companies know that if they start competing on price, they'll only be harming their own profit margin. Price "agreements," not competition, will be the rule. Reputable studies have shown this to be the case.

Myth: The franchise fee is a tax.
Cable operators are charged a 5% fee on gross revenues to use public property - our streets. Stores that lease space in malls pay a similar fee to mall owners. It is a reasonable cost of doing business. This fee goes into the general fund, where it lessens what we all pay in property taxes. If video providers pay a reduced fee, as is called for in Act 42), our property taxes would go up.

Myth: Satellite services have an unfair competitive advantage.
Community-based cable companies offer something satellite will never be able to: local homegrown programming. Yes, cable companies have the expense of paying cities rent for use of streets, but in return, these companies are able to provide local programming that is unavailable to satellite subscribers. This is a great marketing advantage. Cable still far outpaces satellite, serving 61% of households.

Myth: Public, Educational and Government Access (PEG) channels are too costly.
Some cities negotiate additional funding for PEG channels. Typically, this fee is less than a dollar. Some cities use all or part of the franchise fee to fund these channels. PEG channels are one of the greatest deals there are. With small staffs and a lot of volunteers, these stations provide communities with an amazing amount of programming.

Myth: Broadband will be more available without local franchises.
Most of the broadband available today is part of cable TV systems. This broadband is likely to be LESS available without local franchises because cable and telephone companies would no longer be required to serve the entire community.