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create difficulties with the rules and regulations of the Copyright Office. To avoid the difficulties, ATC has requested a modification in the existing cable TV franchise with Carolina Cable. The proposed modification would disenfranchise a small section of the County near the Alamance County line. The correspondence from Carolina Cable and ATC in the agenda highlights specific information about the sale and proposed modifications to the franchise. On February 19, 1992, the Cable TV Citizen Advisory Committee met with representatives of Carolina Cable and ATC. After an in-depth discussion, the committee developed the following statements and recommendations: 1) the committee found ATC to be an acceptable company to replace Carolina Cable; and 2) the committee has grave reservation about omitting a section of the County from the existing Cable TV Franchise. However, to make the transfer of ownership possible the committee recommends appiroval of the proposed modification of the Cable TV Franchise for the balance of the franchise period (February 26, 1996). Currently there are six members on the committee. The majority, four members of the committee voted in favor of the recommendation. Two members disagreed and have developed a minority report which is in the agenda packet in the Clerk's office. Since that time, the Assistant County Manager Albert Kittrell and County Attorney Geoffrey Gledhill have negotiated with ATC to address this particular area of Orange County that would be disenfranchised. ATC has agreed to provide free installation of "primestar" satellite system in lieu of future cable service to the proposed buffer zone. This satellite service would cost about the same as regular cable service. This report proposes that the Board approve the transfer of the cable TV franchise from Carolina Cable to ATC with the condition that ATC provide free installation of Primestar satellite system to residents in the buffer zone. This change in ownership will be on the March 24th agenda for first reading. The County Commissioners asked several questions. Randy Frazier explained that there are different copyright rules pertaining to satellite distribution signals. The reason why the contiguous rule is a problem is that under the copyright rules where systems are under common ownership and control and the franchises are contiguous they have to be treated as one cable television system. That would mean there would be two television mar)Cets -- the Greensboro market and the Raleigh-Durham market that would be under common ownership and control. These two TV systems have different television stations which are distant from each other. Payment would have to be made on signals that could not be received. The liability for that would be $5,000,000 a year. They do not incur that kind of liability for a satellite providing service to the home. The monthly fee would include the satellite equipment as well as maintenance and repair. ATC feels the proposed buffer zone is adequate to satisfy the copyright rules. There are 91 homes in that area or 9 to 10 homes per mile. Norman Vogel, Chair of the Cable TV Citizens Advisory Committee, stated that member Lawson Wynne expressed a concern that people living in the rural areas of Orange County will never be served by cable television. The technology does not permit it. The present rule is 30 homes per mile and in rural areas there are not that many homes per mile. Mr. Wynne feels that the only reasonable technology to provide multichannel service is through some kind of terrestrial transmission or satellite transmission. Obviously a lot of people have a satellite dish. The problem and the reason for his dissenting vote is that of programming. Programming is controlled by cable companies. He feels there needs to be legislation to free up programming so that it can