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Optimum rep tells trustees subscriber losses cut PEG and franchise revenue; company touts upgraded $15 affordable broadband
Summary
Board reviewed a draft five‑year franchise with Cablevision/Optimum; company said subscriber declines reduced PEG payments and franchise fees but highlighted a new low‑cost broadband product upgraded from 50 Mbps to 100 Mbps at $15/month to expand affordability.
The Village of Ossining board was briefed on a proposed five‑year franchise agreement with Cablevision/Optimum and heard the company cite industry trends that are reducing franchise revenues while describing steps to preserve services and expand affordable broadband options.
Corporation counsel summarized the differences between the Verizon renewal the board approved earlier and the proposed Cablevision agreement, noting the term and public‑access (PEG) payment differences. Counsel said Cablevision is proposing a five‑year term with a five‑year renewal option and a PEG contribution of $1.00 per subscriber per month, down from $1.35 under the prior contract, reflecting a ‘‘significant decrease in the number of subscribers.’’
Frank Aliva, senior director of government affairs for Optimum, told trustees that cord‑cutting and rising programming costs have pressured subscriber counts and that the company has voluntarily increased the speed of its low‑cost broadband offering. ‘‘We recently upgraded our speeds for our affordable broadband product…from 50 to 100 [megabits per second] at a $15 price point,’’ Aliva said, and added Optimum has simplified enrollment and is waiving some eligibility verifications to make the product more accessible.
Trustees asked about the budgetary implications for village PEG funding and franchise fees. Counsel said franchise and PEG receipts have declined in most years; the combined franchise fees were reported in the transcript as approximately $476,001 in 2017 and $349,121.98 in 2024 (figures cited by counsel), illustrating a multiyear downward trend. Counsel and the clerk said PEG funds are dedicated for equipment capital for public access and that the village still receives PEG money from both providers.
Trustees requested public hearings and additional detail on terms before sending any final agreement to state regulators; counsel noted the franchise will ultimately go to the Public Service Commission. The board did not take final action on the draft tonight.
