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Q <br />The Proposed Changes Will Not Require <br />Service To Any Areas Not Currently <br />Served By Carolina Cable Or Required To <br />Be Served Under The Existing Franchise <br />Given that the proposed changes will significantly <br />lower the requirements and standards for cable service in <br />the county, what is the benefit that justifies this abrupt <br />change in policy? The County's hope apparently is that <br />reducing the requirements will speed construction and <br />result in service to new areas of the county sooner than <br />might otherwise occur. This hope is not based on any <br />study or survey of projected areas to be served, it is <br />based entirely on guesswork. The theory apparently <br />accepted by the County is that the mere grant of a second <br />franchise will create competition that will inevitably <br />result in faster construction. <br />The flaw in the County's plan is that it overlooks <br />the fact that Carolina Cable already has financial incen- <br />tives, as well as a franchise obligation, to serve all <br />areas of the county where cable service is economically <br />feasible. This means that if the County succeeds in <br />forcing construction of new areas before there is adequate <br />population density, the existing subscribers will have to <br />absorb the increased construction costs and will in effect <br />be subsidizing service to these new subscribers. This is <br />not sound development policy and represents an abandonment <br />of the course previously charted by the Board for orderly <br />development of the franchise area. <br />- 10 - <br />