Lowell subcommittee hears update on Comcast franchise renewal; LTC funding, INET and senior discounts discussed

Lowell’s Technology and Utilities Subcommittee met March 25 to hear an update on the proposed renewal of Comcast’s cable franchise and to take public comment on community cable needs.

The presentation and public comments focused on three central issues: the proposed five‑year renewal through Feb. 28, 2030; funding for public‑education‑government (PEG) programming and the Lowell Telecommunications Corporation (LTC); and the city’s institutional network (INET). Subcommittee members and LTC leaders asked about revenue trends, service quality and the limits of what the city may negotiate under federal and state rules.

Moran Fernandez, the city’s chief information officer, opened the hearing for City Manager Thomas Golden and read the administrative background, saying, “Welcome to the city of Lowell's public hearing on the city's Comcast cable license renewal.” Fernandez and city staff reviewed the renewal process, legal constraints and the negotiation results the renewal team planned to forward to the city manager for his decision.

Adam McKeown, executive director of LTC, told the subcommittee, “we are in full support of the efforts of the city and, how this contract goes forward,” and described LTC as a primary local beneficiary of PEG funding. McKeown said LTC’s operating receipts from Comcast have fallen and that the organization is operating with declining revenues.

On funding details, city staff and outside counsel explained how PEG and franchise revenue are calculated. A side‑letter reporting mechanism in the record yields a small per‑subscriber line item (50¢ per subscriber) that staff use to estimate subscribership; staff reported subscribership falling from an all‑time high of about 30,000 to roughly 14,000. Counsel and staff also emphasized the larger funding source: the federal Cable Act franchise fee equal to 5% of Comcast’s gross revenues. As counsel summarized, “under the Cable Act, the maximum that's allowed for the operating budget is 5% of the cable company's gross revenues.”

City staff provided approximate annual amounts tied to the 5% fee as context: roughly $150,000 per percentage point of gross revenue on average, with LTC receiving about $300,000 annually, the schools about $150,000 and the city roughly $300,000 (figures described by staff as approximate). LTC told the subcommittee it had seen a 13.9% year‑over‑year decline in its most recent payment and about a $100,000 reduction over two fiscal years, and that the organization had moved from one‑year contracts to a three‑year city contract to improve financial planning.

Bill August, external legal counsel working on the negotiation, stressed that the franchise is nonexclusive and that the license does not block other providers from entering Lowell: “the license is totally nonexclusive. If Verizon wants to come along, if RCN anyone, the door is wide open.” Counsel and staff also clarified limits on negotiation: the city may not negotiate rates, channel lineups or channel placement, and federal and state rules constrain the scope of licensable services to video; internet and telephony are generally outside the franchise negotiation.

Staff explained that the city’s INET—an institutional network interconnecting municipal buildings and schools—is delivered over fiber in a hub‑and‑spoke architecture to more than 70 locations. Counsel noted that Lowell’s INET is relatively unusual in the Commonwealth and highlighted that Comcast agreed, for the renewal term, to continue providing INET service without charging the city (staff said corporate authorization to do that took about a year to secure). Counsel described the INET arrangement as a significant local benefit the renewal locks in for the term.

On consumer programs, staff noted Comcast’s continued commitments in the renewal to a senior discount program implemented by side letter (not placed in the license because the city may not regulate rates). Counsel explained the side‑letter approach and that the company historically honors the discount voluntarily. Staff also said Comcast continues participation in its Education Connections program to deliver discounted connectivity and devices to qualifying students and schools.

Councilors asked clarifying questions throughout about what the municipality could negotiate, how funding is allocated among LTC, schools and the city, and whether network quality explains subscriber declines. Staff and counsel told the subcommittee the subscriber decline is primarily due to cord‑cutting and the growth of Internet‑protocol video services rather than an identified technical shortcoming in Comcast’s hybrid fiber‑coax network.

There was no formal vote by the subcommittee. Attorney August reminded the meeting that state law makes the city manager the statutory issuing authority for cable licenses; staff and counsel said the renewal team would recommend the manager consider the renewal and related findings on compliance and service quality. The subcommittee received the report as progress and will inform the full council of developments.

Questions and requests for additional detail at the meeting included: the exact annual dollar totals tied to the franchise fee (staff provided only approximate averages), the current protocol for reporting customer complaints (Form 500), and LTC’s operating budget pressures. Members of the public and LTC leaders urged continued support for LTC’s community programming as the negotiated renewal moves to the city manager for final action.

The hearing record and renewal documents remain available at the city clerk’s office as part of the administrative record; staff noted legal advertisements for the hearing were placed in the local newspaper for two successive weeks as required.

Closing the meeting, the subcommittee indicated no further action and adjourned; the city manager retains the authority to accept, modify or reject the proposed renewal.