HomeMy WebLinkAboutStaff Report 153-08City of Palo Alto
Manager’s Repor
TO:
FROM:
DATE:
SUB3ECT:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: ADMINISTIL4.TIVE
SERVICES
MARCH 10, 2008 CMR: 153:08
INFORMATION ON TESTIMONY BEFORE THE UNITED STATES
HOUSE OF REPRESENTATIVES SUBCOMMITTEE ON
TELECOMMUNICATIONS AND THE INTERNET
This is an informational rep_0rt and no Council action is required.
BACKGROUND
In 1983, the cities of Palo Alto, Menlo Park, East Palo Alto, Ather~on, and portions of San Mateo
and Santa Clara Counties entered into a Joint Powers Agreement (CAO) for the purpose of
obtaining cable television service for residents, businesses and institutions within these
jurisdictions. The JPA gives Palo Alto the authority to administer the cable franchise process on
behalf of its members. Franchise holders provide compensation to the JPA (e.g., franchise fees,
Public Education and Govermnent (PEG) access fees, PEG cham~els, etc.) for the use of its
public streets and rights-of-way.
On October 22, 2001, the Council designated the Midpeninsula Community Media Center, Inc.
(Media Center), as its.Community Access Organization (CAO) to manage and operate the JPA’s
PEG access facilities and channels provided pursuant to the AT&T Broadband cable franchise.
DISCUSSION
On January 29, 2008, Am~ie Folger, the Executive Director of the Media Center, was invited to
testiS, before the United States House of Representatives Subcommittee on Telecommunications
and the Internet. She spoke on behalf of the Alliance for Community Media, a national
membership organization, representing 3,000 PEG access centers across the nation. A copy of
her testimony is attached.
In her testimony about the future of PEG access in the digital age, Ms. Folger called attention to
the growing erosion of PEG support in video provider circles. That lack of support could
seriously undermine and tt~reaten the ability of PEG to fulfill the vital public interests that it is
charged to serve. She focused on the problems the Media Center has encountered with AT&T’s
PEG product on its U-Verse system, which now is offered in one JPA member’s jurisdiction.
Ms. Folger informed the House Subcommittee that AT&T’s method and format for delivering
CMR: 153:08 Page 1 of 2
PEG access channels renders them substantially inferior to every other available popular
commercial channel on AT&T’s system in virtually every way that would matter to a concerned
viewer.
She urged Congress to support and strengthen laws protecting PEG access and to let industry and
the FCC know that cm-rent efforts to imperil PEG will not be tolerated. By doing so, Congress
would provide local commtmities with the ability to engage in local media, to express their
unique interests and cultures, to get to know their neighbors’ views and to stay informed on local
issues.
PREPARED BY:
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
ATTA CHMENTS:
Attachment A: Summary of Testimony
Attachment B" Testimony
MELISSA CAVALL.O ~
Cable Coordinator :/
L.ALO PE~Z ~"
Administrative Services Director
EMILY HARRISON
Assistant City Manager
CMR:I53:08 Page 2 of 2
ATTACHMENT A
SummmT of Testimony
The Alliance for Community Media
by Annie Folger, Executive Director, Midpeninsula Community Media Center
Public. Educational and Government Access (PEG)In the Digital A~e
U.S. House Committee on Commerce and Ener~,
Subcommittee on Telecommunications and the Internet
January 29, 2008
PEG Access owes its existence to the visionaries in Congress \~ho recognized that the franchising process
created an unprecedented oppormniD; to enable local communities to provide for their unique needs.
Millions of dollars have been spent by telephone and cable companies in the past two years on ad
campaigns and lobbying to influence state cable franchise laws in 17+ states. The FCC has overruled
Congress, assigning itself powers that Congress conferred on local conamunities. This chaos is being used
to dismantle PEG support and to damage channel quality and accessibiliD:. We welcome colnpetition. But
it cal~i!ot be used to shirk PEG Access obligations that have provided direct service to the local community.
Many PEG centers have moved into digital technology for production and transmission. PEG centers are
fully engaged in migration to an integrated digital environment when allowed. The primma,, challenge for
PEG access is not digital technology, but how cable providers-- whether traditional cable operator or a
telephone company-- prov_ide PEG signal quality, functionality, channel placement and funding support.
2-
How U-Verse is Delivered in Palo Alto
AT&T’s "PEG pla~’orm" is an inferior technology which is only applied to PEG Access. The U-Verse
PEG s.vstem is sub-par, low resolution and cumbersome and PEG channels are confined to a separate
system inferior to commercial channels on AT&T’s system in virtually every way that matters to a viewer.
For example, Palo Alto cannot closed-caption the educational programming our hearing-impaired students
rely on. Most DeAnza CommuniD~ College programnaing is c!osed-captioned, as California law requires.
AT&T, however, will not pass through the closed-captioning DeAnza includes in its programming. This
means that our disabled students cannot be served as the law and common decency demand.
Other PEG Deficiencies Engineered into U-Verse:
¯DVR’s cannot record PEG ¯Have 25% as much resolution
¯45-90 seconds to load channel °Have much smaller picture
¯Channels are hard to find °Picture stutters when used for spoi’ts,
¯No second audio program dance or motion.
(:Vo~e: To Receive sample PEG on ~ Verse D VD, see contacts on reverse side.)
PEG Is Under Attack Around The Country
¯ MI Comcast unilaterally channel slams PEG in ways that make it far less accessible to the public.
Comcast has closed facilities in nine different cities.
°IN Comcast closed PEG facilities in 12 communities.
¯OH, FL, MO, WI PEG funding 100% eliminated in the next five years.
o KS Salina PEG loses over $130,000 per year immediately--the majorib, of its budget.
¯TX Time Warner eliminated PEG facilities on the first day allowed, with practically no notice,
sending the Public Access channel into black.
Other examples of unintended consequences and bad action allowed in the current chaos are available.
We Need Congressional Help
.4s you did i~ 19~4. we look to you. our leaders in Con~.ress. to declare your vision i~ 2008. to tarese~a,e the
abil#v o~local commu~fities to enza~e in local media, to express their zmiaue interests and cultures, to ~et
to know their neighbors views, to stay informed on local issues
For Copies of the PEG ON U-Verse DVD, Please Contact Anthony Riddle
For further information:
Annie Folger, Executive Director
Midpeninsula Community Media Center
Palo Ako. CA
650.494.8686
Anthony Riddle, Executive Director
Alliance for Comnaunity Media
raiseevervvoice~::vahoo.com
202. 957.5504
Alliance ~br Community Media
666 ! 1~h Street NW, Suite 74(~
\Vashinc, ton DC 20001
202.393.2650
The Alliance full), suppo~ts the testimony of Mayor O’Rielly of Dearborn, MI on behalf of NATOA
and local governments. -~
The Alliance for Community 3~redia, a national membership organization,
represents 3, 000 _Public, Educational and Governmental (PEG) Access
centers across the nation, PEG channels are used by 1,2 million volunteers
and 250, 000 community o~ganizations. Local PEG prog’ammers produce
20, 000 hours of new programs per week -more new programming than all
of the broadcast nem, orks combined
ATTACHMENT B
BEFORE
UNITED STATES HOUSE OF P,.EPRESENTATIVES
COMMITTEE ON ENERGY COSIi~rIERCE, SCIENCE AND TP,_4aNSPORTATION
SUBCOMMITTEE ON TELECOMMU~-NICATIONS AND THE tNTERNET
PUBLIC, EDUCATIONAL AND GOVERNMENT (PEG) ACCESS
SERVICES IN THE DIGITAL AGE
Testimony of
A2~SVIE FOLGER
Executive Director
MIDPENINSULA CO3,E~IUNITY MEDIA CENTER,
PALO ALTO, CALIFORNIA
o~7 behalf of
The Alliance for CommuniO, Media
JANUARY 29, 2008
ROOM 2322, RAYBURN HOUSE OFFICE BUILDING
WASHDqGTON, D.C.
Good aRernoon, my name is Annie Folger, Executive Director of the
Midpeninsula Community Media Center in Palo Alto, California. We are a
non-profit organization responsible for managing the public, educational and
government (~PEG") access channels serving the City of Palo Alto and five
surrounding jurisdictions. I speak to you on behalf of my community PEG center
and the members of the Alliance for Community Media. The Alliance represents
over 3,000 PEG access centers across the country. Our thousands of members,
millions of community television producers and tens of millions of viewers thank
Chairman Ding~ll and Chairman Markey and the members of this Subcommittee
for inviting me to speak with you today on the important topic of the future of PEG
access in the digita! age.
PEG access owes ~ts existence to the visionaries in Congress who recognized
that the franchising process created an unprecedented opportunity for localized and
diverse content that responds to the unique needs and interests of each particular
community.
Thanks to this vision, community media has grown and thrived since the
1984 CaNe Act. Members of Congress have repeatedly affirmed the importance of
PEG access to the community.
Alliance for Community Media Page I
PEG communities now produce more than one million hours of original
programming per year. Tens of thousands of people are first taught by PEG
centers to use video equipment and computers for the benefit of their communities.
Over the past 35 years, PEG has become an in’eplaceabIe part of community
dialogue, participation and local identity. Alliance members in the room today
have come from California, I!linois, Indiana, Kentucky, Michigan, New York,
Ohio, Virginia and Washington, D.C., representing PEG operations across the
nation - all states in which PEG access is threatened in the current, chaotic
environment.
The Allio,0mce testified before this Committee nearly two years ago in
copmection with the then-proposed federal franchising legislation. Since that time,
a major push has been under,ray for control of the cable market. Massive dollars
have been spent by telephone and cable companies on ad campaigns and lobbying
to influence legislation.
PEG support is eroding on several fronts. Video service providers have
attempted to deprive PEG channels of the same viewer accessibility, signal quality,
channel functionality and channel positioning that they afford to all other
commercial programmers. Since 2005, state cable franchising laws have passed in
17 states, and most are being used to dismantle PEG support and to damage
channel quality and accessibility. In just the last year the FCC adopted rules that
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assi~ itself powers that Congress rightly placed in the !oca! community. The FCC
rulings are fraught with provisions and conditions that undermine the development
and viability of PEG access in the future.
AI! of this has been done in the name of promoting competition. We
welcome competition. But it is not an excuse for shirking or dismantling PEG
access obligations that have provided direct service to the local communities for
over thirty years. Chairman Markey noted the dangers of this deregulatory fervor
in an address a year ago in Memphis, Tennessee, when he said: "We will not let
telecommunication cdmpanies or the FCC kill PEG access television."
These assaults on PEG have resulted in a chaotic environment for PEG
centers, programmers and viewers. And they threaten the ability of PEG to fulfill
the vital public interests that it serves - interests that Congress has recognized and
fostered repeatedly ever since the Cable Act was first enacted in 1984.
To put this issue in perspective, PEG funding constitutes less than a q~arter
ofl% of cable revenues in this country. And yet over a million hours of local
progamming result each year. While PEG channels are 100% devoted to the local
public, less than one half of 1% of programming on commercial stations today -
that’s only 17 seconds per hour! - is devoted to local public affairs.
Communities and PEG centers across the nation are experiencing a variety
of different kinds of threats to their PEG channels. They include:
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,Cable operators relegating PEG channels to the inferior status
of a mere Internet application rather than a true video channel.
~Operators moving PEG channels to high digital tier channel
numbers that require subscribers to pay for additional
equipment to view PEG channels.
Substantial reductions in PEG monetary support due to
operators’ unilateral interpretations of new state laws or FCC
rules,
Shutting down of PEG studios by operators.
. Operators forcing PEG centers or local governments to
purchase new transmission capacity to be able to send PEG
programming from PEG studios or city hatls to the operator’s
headend.
.Freezing the number of PEG access channels that an operator
will provide, with no opportunity for growth.
PEG in a Digital Environment.
The primary challenge for PEG access television is not digital technology
and transmission, but rather how infrastructure-based video providers, whether
they are a traditiona! cable operator or a telephone company, treat PEG in terms of
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signa! quality and functionality: subscriber access to PEG channels, channel
placement and PEG funding resources.
Many PEG centers have already moved into digital technology for
production, post-production, and to some extent, signal transmission. PEG centers
are fully aware that this migration to an integrated "end-to-end:’ digital
environment will continue, and we are committed to planning for and
implementing reasonable, cost-effective solutions.
Contrary to industry claims, the Internet is not a replacement for PEG.
Many, if not most, PEG centers already have websites, and many stream video
content from their websites. But that is no substitute for reaching the public
through dedicated video channels on a cable system. If it were, then over-the-air
broadcasters and traditional cable channels like CNN and ESPN would presumably
abandon the expense associated with transmitting their video channels and rely
exclusively on the Web. But of course, they do not. Rather, they use websites as a
complement to, rather than a replacement for, their video channels.
My own community of Palo Alto, California, has already begun to suffer
from AT&T’s shirking of its PEG obligations in ways that will also affect other
communities across the country.
Alliance for Community Media Page 5
AT&T’s "PEG Product" in Palo Alto.
Let me begin with the example with which I am most personally familiar:
The problems that the Midpeninsula Media Center has encountered with AT&T’s
so-called "PEG product" on its U-Verse system that is being marketed in the Palo
Alto area. Because AT&T’s "PEG product" is the same virtually ever),~vhere, the
problems my community has encountered will occur ever?~,here AT&T extends
its U-Verse video offering.
Palo Alto has seven PEG channels that deliver a wide variety of diverse
programming of ~eat-ir~terest to our residents. Rep. Eshoo’s town hall meetings,
for instance, are carried live on one of our PEG channels. She reaches constituents
who carmot make it to the meeting and answers questions that constituents e-mail
to her while they’re watching. Similarly, our state senator, Joe Simitian, produces
a show called Capital Focus that runs on one of our PEG channels. But these are
just a few of the many examples of diverse and locally-responsive programming
that our residents can watch on our PEG channels and nowhere else.
AT&T’s plarmed "PEG product," however, would radically change our PEG
channels. It would make our PEG channels substantially inferior to every other
popular commercial channe! on AT&T’s system in virtually every way that would
matter to a viewer: in terms of ease and time of retrieval, in terms of signa!
quality, in terms of channe! Nnctionality, and in terms of channel location.
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AT&T’s method and format for delivering PEG access channels to
subscribers is fundamentally inferior to that of Comcast, our incumbent cable
operator. Also unlike AT&T, Verizon, the other major telephone company
entering the video market, is operating hundreds of cable franchises across the
country in a way that permits it to meet the same PEG public interest obligations as
incumbent cable operators. Unlike incumbent cable operators and Verizon, PEG
channels on AT&T’s system are not delivered as television channels at all.
Instead, PEG cham-~els - alone among all other video channels on AT&T’s lowest
priced service tier- are delivered as if part of an Internet-based system separate
and unequal as compared to the full-screen format and picture resolution of other
channels carried on AT&T’s basic cable tier. Commercial pro~ammers get red
carpet treatment, while PEG programmers must communicate through a small door
in a back alley.
Attached as ]~.’daibit A to my testimony is a letter dated November 29, 2007,
to AT&T from the Palo Alto Joint Powers Authority.
shortcomings of AT&T’s so-called ~’PEG product."
It describes the
We do not believe that
AT&T’s euphemistically named ’~PEG product" complies with California’s new
state cable franchising law or with the FCC’s closed captioning rules. AT&T
disagreed in their response (see Ex_hibit B). More importantly for our discussion
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today, AT&T does not dispute the description of the deficiencies buiit into its
"PEG product" set forth in the Joint Powers Authority’s November 29 letter.
If a picture is worth a thousand words, then a video is worth considerably
more. We have supplied you with CDs of AT&T’s so-called "PEG product."
Your own eyes will reveal shortcomings that no engineering report can describe or
refute as effectively.
Based on correspondence, meetings and demonstrations by AT&T, we noted
the following serious deficiencies in AT&T’s delivery of PEG - deficiencies that
will be present in ever:y, community in which AT&T’s U-Verse system is deployed:
Channel Placement. Our current PEG channels are located on
channels 26, 27, 28, 29, 30, 75 and 76. Yet AT&T will move
al! of our PEG channels to channel 99.
Submenus. Our PEG channels will be retrievable only after
the subscriber scrolls through a maze of confusing menus and
submenus located at channel 99.
~ Channel Latency. Merely retrieving a channel can take well
over a minute--as compared to less than a second for
commercia! channels.
, Desraded Resolution. AT&T’s method of transforming all
PEG television channels into Internet video streams means that
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the quality of PEG chamqels is inevitably compromised when
75% of the original picture detail is discarded. (See Exahibit C
attached.)
Reduced Size. When originally accessed, PEG channels will
be reduced to one-quarter the screen size of all otl~er basic tier
channels. The subscriber may enlarge the PEG channel by
selecting the zoom option, but that exacerbates the inferior
picture resolution of the PEG channel.
Reduced Usefulness. The resulting loss of size and detail in
the picture makes it difficult, often impossible, for a student to
read written text in a lesson or for a citizen to decipher items on
a city council agenda.
Degraded Motion. Progams like high school football and
basketball games, involving fast motion and high details, are
further compromised by AT&T’s Internet streaming
techniques. The end result is a viewing experience that has
more in common with a YouTube clip than a standard
definition TV broadcast.
No Closed-Captioning. The hearing-impaired community
may be prevented from accessing programs properly.
Alliance for Communi~’ Media Page 9
Furthetxnore, AT&T’s lack of ciosed captioning may place
PInG pro~amming at risk of violating state or 1oca! disability
service requirements.
No SAP Capability. All other channels are capable of
providing second audio program for second tanguage
translation and o~her innovative uses. This is stripped out of
PEG channels in AT&T’s U-Verse.
No Reeordin~ Capability. Unlike other channels on AT&T’s
system, PEG channels cannot be scheduled for recording on
TIVO or VCR because they are on submenus that cannot be
accessed by recorders.
No Last Channel/Favorite Channel Capability. The remote
control cannot be used to return to the PEG channels because
they are not actually channels.
No Emergency Qverride. Under California law, AT&T must
comply with the local emergency override requirements of the
Comcast franchise until the Comcast franchise would have
expired in July 2010. \~ðer AT&T can comply is unclear.
It has recently asked the FCC for a waiver of the FCC’s rules
concerning the emergency alert system ("EAS") because
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AT&T’s U-Verse system is apparently not yet capable of
delivering state or local emergency alerts. Unlike Comcast,
AT&T is unable to deliver unique programming to a local
neighborhood, so would by implication be unable to deliver an
emergency alert to an area more localized than the entire Bay
Area.
AT&T has argued that these many shortcomings must be tolerated if the
competition to cable operators offered by AT&T is to be realized. It touts its
.
failings as benefits. -AT&T argues that since its system enables our viewers to
retrieve any PEG channel in the entire Bay Area, it offsets the inferior channel
quality, functionality and accessibility that our subscribers wilt suffer in retrieving
and viewing their own local PEG channels. We do not share that view. By their
nature, PEG channels are local. We doubt our subscribers would prefer to sacrifice
the accessibility, quality and functionality of our local PEG access channels in
return for being able to access PEG access channels from, for example, Walnut
Creek or Oakland.
The real issue is that regional accessibility has nothing to do with the
degraded quality they provide us:
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Everyone in the neighboring systems sees CN2’,r and Fox and
the other commercial channels - but they are still recordable
and navigable. PEG should be, also.
o Like AT&T’s system, Verizon’s FiOS allows everyone in a
metro area to see alt PEG channels in the metro area. But
unlike AT&T, Verizon’s PEG channels are on tea! channels,
not pretend channels. You reach them the same way and they
are the same basic quality as other commercial video channels
on Veriz6n’s FiOS system.
The bottom line is that AT&T has designed a system that is not in
compliance with law or with the intentions of Congess.
Closed Captioning.
I want to add a special word about AT&T’s inability- to pass through
closed-captioning on PEG channels. One ofPalo Alto’s PEG channels is an
educational access channel that is programmed by DeAnza Community College.
DeAnza delivers lectures, instruction and other educational material to its students,
as we!l as the public, over its PEG channel. Most oft.he DeAnza channel’s
pro~amming is closed captioned, as California law requires it to be.
AT&T, however, will not pass through the closed captioning in DeAnza’s
pro~’amming as it is delivered to AT&T. That, coupled with the reduced picture
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size and inability to record DeAnza’s pro~amming through DVR capability,
would render AT&T’s carriage of the DeAnza channel essentially useless to its
students. N~any of De.~nza’s programs include PowerPoint presentations and other
instructional tools that wil! be unreadable a~d/or obscured by AT&T’s reduced
picture formatting and open captioning.
The closed captioning issue extends far beyond Palo Alto, however. Many
PEG channels are closed captioned elsewhere. Government access channels in Los
Angeles, California, Cincinnati, Ohio, and Portland, Oregon, for example, are
closed captioned. In Los Angeles, some govermnent access pro~amming is also
delivered with SAP capability, enabling viewers to hear the programming in
Spanish. As in the case of closed captioning, AT&T’s "PEG product" cannot
deliver SAP capability on PEG channels.
AT&T’s unilateral replacement of closed captioning with always-on open
captioning on PEG channels is an inadequate substitute, and blatantly
discriminatory to PEG. As anyone who has ever watched captioned programming
~aows, the captioning obscures a significant part of the screen. For those viewers
who do not need or want captioning, their ability to watch the programming is
frustrated by open captioning. Moreover, those who need captioning often click
the captioning on and oft; depending on what is going on in the programming (for
example, to see a diagram or a sports replay) - something that closed, but not open,
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captioning allows them to do. Finally, AT&T does pass through closed captioning
on all of the other over-the-air broadcast and commercial programming channels it
carries. Only PEG is singled out for open captioning.
The Broader Picture of the Threats Faein.o PEG.
The tt~reats currently faced by PEG go far beyond those faced by my
community in particular, or those presented by AT&T’s "PEG product" in general.
Many of the new state franchising laws have no provision for protecting
PEG channel capacity allocated in cable franchise agreements or increasing PEG
capacity above the nuinber of currently activated channels. Some permit operators
to aggregate PEG channels serving multiple con~nunities, thereby eroding the
ability to provide truly local community programming.
PEG funding is being eroded by new state franchising laws and the FCC’s
Video Franchising Orders through reductions in franchise fees, charges to PEG
centers for carriage, unreasonable restrictions on what constitutes capital support,
and reductions in support from existing cable operators.
In many state video franchising bills, you’ll see language that says the
companies will make "reasonable, technically feasible efforts" to transmit and
interconnect PEG channels. "Reasonable, technically feasible efforts" is
speak. It’s an invitation to mischief. What we need are t~ee simple words, "Just
Do It."
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Recent industry-pushed actions by states, and cable operators’
interpretations of them, have posed dire threats to the future of PEG. Just a
fi’action of the resources that AT&T, Comcast and other companies are putting into
ad campaigns and lobbying to influence the outcome of legislative changes would
fund PEG access in perpetuity. It’s a big stakes game for business. We’re here to
tell you that, although we lack the public relations and lobbying resources of
industry, the stakes are also high for the public as well.
A t~ew examples of the new threats faced by PEG centers in various states
follow:
Michigan
Comcast’s decision to move all of its Michigan PEG channels up to the
channel 900 range is another example of a disturbing pattern of industry steps that
seem aimed at destroying the future of PEG. Mayor O’Reilly of Dearborn will
discuss that matter in detail. I only add that, if Comcast (which happens to be the
incumbent cable operator in my community) were to do the same thing in Palo
Alto, it would seriously damage, if not destroy, the ability of our PEG channels to
reach many of our residents.
The Michigan Chapter of the Alliance for Community Media found that
AT&T’s PEG picture quality is substantially reduced in quality as compared to
other local programmer signals. Nonetheless, a PEG center is required by
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Michigan law to purchase expensive transmission equipment - only to have the
final signal degraded by AT&T. There is no excuse for such erosion in quality for
PEG access from the quality standards we enjoy on cable systems today.
Elaine McLain of Clinton Township, who is a member of the Birmingham
[Mt] Area Cable Board and Chair of its Cable Action Committee, says she is
outraged that AT&T is using a cumbersome menu system and poor picture and
audio quality to marginalize the PEG prograiaming on her U-Verse service. We
have included a copy of her e-mail to the editor in our packet as Exhibit D.
Following pass~.ge ofa statewide cable and video franchising law in
Michigan, Comcast shut down its PEG facilities in 12 communities.
Ohio
Ohio’s state law went into effect in September of 2007, but you can already
see the damaging effect on PEG access. In the City of Wadsworth, Ohio,
Time-Warner has dropped all financial support for PEG to the tune of $138,000
per year. The Miami Valley Communications Council, which represents eight
Da}~on suburbs in consortium, will be losing its institutional network on April 1 ~t
of this year, thereby imposing on its municipal members over $100,000 in new
capital costs to replace these services. As a result, public safety plans to connect
the security cameras of the local schools to the police department have been
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shelved, and the consortium is looking at the loss of more than $1 !4,000 in
franchise fees and $50,000 in PEG equipment annually.
In Mentor, Ohio, where AT&T has begun service, 40% of the complaints
made to the city communications office in the month of January have been about
AT&T’s failure to provide Mentor’s PEG access programming on its system.
Da?,~con Access Television, the public access television provider for Dayton, Ohio,
is facing an immediate reduction of $150,000 in its annual PEG support funding,
and the city itself will see a drop of approximately 20% in franchise fees.
Many communities ttvoughout Ohio will see even more damaging effects as
their franchises expire and the final implementation deadline of the new Ohio law
comes to pass, including loss of all PInG funding, reclamation of PEG channets that
are used as text-based bulletin boards by video service providers, movement of
PEG channels to the digital tier, and barriers to the creation of new PEG channels.
Kansas
After Kansas’s state franchising law went into effect, the City of Salinas and
other Kansas communities lost hundreds of thousands of dollars in PEG support.
Indiana
One year after Indiana’s state franchising law went into effect, Comcast
closed its PEG facilities in nine communities in the northern pa~t of the state. PEG
Programming ceased in those communities on December 18, 2007. Attempts are
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being made to restart these operations, but PEG capital payments have not been
made by AT&T, Verizon or Comcast.
Conclusion
Telephone and cable companies may represent to you that they are taking
care of PEG access. But the reality doesn’t come close to that.
Every day we hear more about the fallout from unilateral decisions made by
video service providers about PEG carriage and funding that are made hastily and
without f~!! consideration for the implications for the public. The people of this
country deserve betteK
As more of our media is commercialized, outsourced, regionalized and
controlled by people far away from our hometowns, the local commitment of our
PEG channels becomes all the more important. ’,~qaether it’s an urban
neighborhood or a small tow-n, we need to have local media resources like PEG
access.
Congress can do one of two things: It can leave PEG access twisting in the
wind at the mercy of industry’s campaign to destroy it. Or Congress can
vigorously act to support and strengthen laws protecting PEG access and let
industry and the FCC know that current efforts to imperil PEG will not be tolerated
or allowed to stand. As you did in 1984, we look to you, our leaders in Congress,
to declare your vision in 2008, to preser~e the ability of local communities to
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