The Reader, 5/10/2007

Limiting Access

Public’s television threatened if council bows to Cox

By Andrew Norman

 

When Omaha signed its original cable television franchise agreement with Cox Communications in 1980, the telecommunications giant promised four access studio locations, two fully equipped mobile vans, 14 full-time and six part-time programming staff members and 14 channels to air public access programming.

 

As Cox and the city near the end of the 30-year contract, that commitment has dwindled significantly, and could be lessened further if the Omaha City Council passes a Cox-initiated proposal Tuesday, May 15.

 

The contract has been amended several times over the years, said Deputy City Attorney Tom Mumgaard; for instance, the four studio locations were consolidated into Cox’s 115th and Dodge site through city council amendments in 1996 and 2000. Mumgaard maintains the rest of the contract’s public access commitments remain valid.

 

Cox currently offers the city two studio rooms (one’s being used for storage), one full-time and one part-time employee, and six public access channels (4, 17, 18, 21, 22 and 23). If Cox has its way, those six channels – which air programming from government and community leaders, educational and health entities, as well as from everyday Omahans – would be cut to just three, in order to free up bandwidth.

 

Omaha citizen’s group Independent Television Omaha has been working for almost two years to convince the city to enforce the 14-channel agreement. ITO wants one of those channels to air Free Speech TV shows like “INN World Report,” Keynote” and the award-winning non-corporate news show, “Democracy Now!” The group says it would fill the rest of the channel time with locally produced programs, including community events, demonstrations and lectures.

 

ITO worked with the city’s Cable Television Advisory Committee (CTAC) through 2006 to broker a deal with Cox to put ITO on the air. ITO accepted the terms of an August compromise, written by Mumgaard, but Cox didn’t.

 

The negotiations stalled, and CTAC –whose only power is to send recommendations to the city council – never sent a resolution to the council.

 

At some point in late 2006, Cox lobbyist (and speaker of the Nebraska Legislature until last year) Kermit Brashear met with city officials, including Mumgaard and representatives from Mayor Mike Fahey’s office, to pen a plan to allow Cox to cut three channels. The details are unclear as to the closed-door meetings, but City Councilman Jim SUttle (who did not return interview requests this week) offered a proposal in February that was amended into the current one that was introduced May 1 by Council President Dan Welch.

 

Welch said in an interview Tuesday, “The Cox people worked with the mayor’s office to put together an amendment…the Cox people met with me and told me that they felt like there were four council members that would agree to the amendment. I talked to the mayor about it, the mayor asked if I would put it on the agenda.”

 

Fahey’s chief of staff Paul Landow said Fahey planned to veto the initial proposal, but was in support of the current resolution.

 

“I think the key change was to address some of the programming issues and to make sure that the city was getting an adequate return on this compromise.” Landow said.

 

The proposal, al9ong with allowing Cox to convert three analog (public access) channels to digital or high-definition, would require Cox to spend up to $90,000 to connect cable television at city facilities, as well as “assisting the city in a one-year trial of a wireless internet network with up to three sites chosen by the city”; if the city chooses not to establish this trial network, Cox would “donate” $75,000 to buy equipment for or “facilitate the operation of” the three remaining public access channels.

 

Cox says there currently is only enough public access programming to fill one channel, and that it needs the extra bandwidth – analog channels take as much as 12 times the space as do digital – to allocate to services it says customers actually want.

 

“We hear from our customers regularly and out customers are telling us they want more high-definition programming,” said Kristin Peck, Cox’s vice president of public and government affairs. “They want faster internet speeds; they want more digital channels. At the same time they’re asking us for all of these things we’ve got all of this bandwidth out there that is not being utilized.” Peck declined to produce evidence that Cox’ 750 MHz of bandwidth were full.

 

A public hearing on the matter Tuesday, May 8 drew about 30 opponents, far more than were able to speak in the 20-minute allotted time limit.

 

ITO spokeswoman Frances Mendenhall appealed to the council to force Cox to honor the 14-channel agreement, saying public access is a “medium for poor people.”

 

“If you don’t have the internet, which a lot of elderly and poor people don’t, you need public access,” she said.

 

Omahan Preston Love, JR. said public access was an opportunity for “the downtrodden to express themselves.”

 

 Omaha City Councilman Frank Brown uses his hour-long show each week on Cox channel 22 to speak directly to – and hear directly from – his constituents in Omaha’s second district.

 

“It’s rare that media outlets will cover issues that affect African Americans in my district,” he said in an interview Monday, “and so this is a great vehicle to get this information out.”

 

Brown said Cox has never lived up to its promises since the company “engineered the contract to have Cox here in Omaha.”

 

“[Cox has] always taken away from public access and [it hasn’t] made it accessible to the public. If you don’t make it accessible then people are going to be so disenfranchised they’re not going to use [it].”

 

Brown told The Reader, “I just don’t believe that we should give up something for nothing. And the people will say, ‘Well, we’re gonna get more percentage of the [franchise rates] if they use that channel for movies’…look at the bigger picture, and value of a channel, and you’ve got to ask yourself, ‘Are we getting the right price for giving up something that has such an impact in revenue?”

 

So what are those analog channels worth monetarily? A look at the company’s leased-access rates provided a general idea. (Since 1984 the Federal Communications Commission has mandated that a cable provider offer leased-access channels to provide a check on anti-competitive practices.) As of July 1, 2006, Cox was charging more than $2,600 per day for its “Limited Basic” channels 1-27. That works out to more than, $936,000 per year, per channel. The three public-access channels that Cox proposes cutting would total more than $2,808,000 per year if they were leased-access. That doesn’t touch the eight public access channels Cox promised, but has not delivered over the past 26 years.

 

Cox may have bit off more than it could – or was forced to – chew with its public access “commitment” in 1980, but the agreement certainly has benefited the company, which reported $7.054 billion in revenue in 2005. City figures based on franchise fees show Cox made $310,241,200 in Omaha alone in 2006.

 

We have to make money as a business,” Peck said. If we don’t, we’re going to die as a company.”

 

Peck, who acknowledged that Cox does not promote its public-access channels, said if the proposal did not pass, the company would try other ideas.

 

We have to grow as a company,” she said. “If this does not go through, then we have to look at the other channels on the analog lineup that our customers actually watch.”

 

After more that two years of work, Mendenhall believes “one of the last public arenas is at stake when the city council votes Tuesday.

 

“Everykthing is privatized,” she said. “and they want to privatize this, too.”

 

She hopes the city uses the $100,000 left from its Cable TV franchise fees to fund a communuity needs assessment, “instead of trusting the cable provider to tell you what the community  needs and wants.

 

“It’s like, we’re going to take over your very favorite public park. We’re not going to pay you for the land. We’re going to use it to set up a strip mall. But don’t worry,” she said, “you can come there and shop.”