Congress Wanted Fiscal Restraint on LFAs, NCTA Says
Congress imposed fiscal restraint on franchise authorities with Cable Act's Section 626(c)(1)(D) covering franchise renewal standards, and the statutory cap on franchise fees under Section 622, with the two being complementary, not one superfluous, NCTA said in an FCC docket…
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05-311 posting Friday. It said Congress authorized franchise fees of up to 5 percent of cable service revenue, but most franchising authorities wrongly view that cap "as a floor for monetary payments before adding on costly in-kind exactions -- rather than as the ceiling that Congress intended." It said valuing the "actual cost" of free or discounted services required by franchising authorities wrongly ignores opportunity costs. A Further NPRM asks about further capping some LFA mandates (see 1812200042).