Technology subcommittee reports progress on five‑year Comcast franchise renewal; 5% fee, PEG support included

A City of Lowell subcommittee updated the full council on negotiations to renew the cable franchise with Comcast of Southern New England, describing a five‑year agreement that includes the maximum statutory franchise fee and provisions supporting public, educational and government (PEG) access.

The Technology and Utilities Subcommittee report said the proposed contract includes a 5% franchise fee on gross video revenues, a 50¢ per subscriber fee, and a side letter to formalize a senior discount. The report also said Lowell would retain complimentary access to the institutional fiber network (INET) connecting city buildings during the five‑year term; staff cautioned that the complimentary INET provision may not survive future renewals.

Attorney Bill August, who represented the city in negotiations, explained that "the proposed 5% franchise fee is based on the gross revenue that Comcast earns from video services within the city of Lowell," and that Internet and telephony revenues do not count toward the video‑only fee calculation under Massachusetts law. Committee members noted that cord‑cutting and declining video subscriptions are reducing franchise revenues statewide and locally.

Adam McHugh, executive director of Lowell Telecommunications Corporation (LTC), attended and said the LTC relies on franchise revenues to fund community media services; the subcommittee noted that franchise revenue declines could reduce that support. Staff also reported that Comcast maintains a retail presence in the city at Target Plaza on Plains Street and reaffirmed Comcast's operational stability.

The subcommittee emphasized that the city manager — not the council — has authority to execute the franchise agreement. No immediate council action was required; the report was submitted as a progress update and the manager will complete execution consistent with the negotiated terms.