The FCC should clarify its proposed rulemaking on cable modem ser...

The FCC should clarify its proposed rulemaking on cable modem service so local municipalities could continue to receive franchise fees from cable service, Sen. Landrieu (D- La.) told Commission Chmn. Powell in an early May letter. Landrieu said that as part of the proposed rule that would classify cable modems as an information service, the FCC had determined that revenue from cable modems shouldn’t be included in the franchise fees. However, he said some cable companies had told La. parishes that they no longer would pay franchise fees on revenue earned from cable modems. “I urge the FCC to further clarify that its decision is prospective and affects only contracts signed after the issuance of its ruling. Otherwise, local governments will be exposed to future claims and significant risk,” Landrieu said. The letter is similar to one sent by House Commerce Committee Chmn. Tauzin (R-La.) in March (CD March 13 p11)