Town board opens public hearing on 10-year cable franchise; company cites 5% fee and PEG support

The Philipstown Town Board on June 10 opened a public hearing on a proposed 10-year cable franchise agreement with Cable Vision/Optimum, which town negotiators said was largely unchanged from the prior contract.

Frank Oliva, senior director of government affairs for Optimum, told the board the draft is based on the prior franchise and federal rules that cap franchise fees. "There is a a 5% gross revenue franchise fee that is based on the subscriber amount as well as a a PEG grant that is on a per subscriber fee," Oliva said, and confirmed the PEG payment is structured as roughly 33 cents per subscriber per month for five years.

Town negotiators said they held multiple line-by-line review calls with the company and made a few minor edits but found no major changes were required. Board members asked for clarity on which municipal buildings and incorporated villages would receive free service under the franchise. Oliva said the franchise covers the entire town but that incorporated villages manage their own rights-of-way and may have separate agreements.

The hearing also included operational discussion: Oliva said the system is nonexclusive and that Optimum is offering gigabit internet to subscribers, but acknowledged subscriber totals are "trending down." He said the company is making network improvements and that any new competitive operator could enter the market.

Board members asked staff to confirm and finalize Exhibit B (the list of municipal locations eligible for free service) and to bring the contract back for signature at the next meeting if no substantive changes are required. The board opened and later closed the public hearing by motion during the same evening's session.

Next steps: the board will finalize the exhibit showing municipal locations that receive free service and is scheduled to consider contract authorization at a forthcoming meeting.