MetroNet has told North Aurora and other Fox Valley communities it will stop selling traditional cable television and is seeking early termination of its local franchise, village staff said at the Nov. 18 Village Board meeting. The company has offered roughly $7,800 to end about two and a half years of its franchise early; by comparison, the village received about $6,800 from MetroNet for cable franchise fees last year.

Staff member Steve told the board MetroNet will continue Internet and phone services on existing fiber infrastructure but stop offering a TV product. Village counsel Kevin advised that the Federal Cable Act provides a process for franchise termination and that municipalities could refuse the company’s tendered agreement. He cautioned, however, that refusing could trigger a state administrative proceeding and potential litigation that may be costly and still result in little or no franchise revenue.

The village’s franchise fee for cable services is 5% of gross cable sales; staff noted that streaming-driven declines in subscribership have significantly reduced annual franchise-fee receipts. Kevin said federal and state law limit the village’s ability to collect fees on Internet services, and staff therefore recommended negotiating alternative compensation—such as in-kind services or tightened right-of-way standards—because direct fees on broadband are largely preempted.

Trustees raised several options: one suggested seeking the full amount the village would have collected through the original contract term; staff replied that because future annual receipts are unpredictable and litigation is expensive, accepting MetroNet’s settlement is a practical option. Steve and Kevin said the draft termination agreement includes language requiring MetroNet to comply with the village’s right-of-way standards going forward.

Next steps: staff said the termination and any negotiated settlement will likely return to the board on a future agenda for formal approval or further direction.