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12 <br />it is entitled to receive compensation (Fifth Amendment) for the use of its cable <br />system. TW perceives Disney/ABC's action as constituting a taking of private <br />property without just and just compensation . <br />RECOMMENDATIONS <br />Although the acquisition of Time Warner by America Online and MediaOne by AT&T is not <br />without some regulatory and anti competitive uncertainty, the long term potential economic and <br />technological benefits a vertically integrated company with a unique sets of expertise, is both a <br />positive and negative aspect of the transfers..Accordingly, to guard against possible <br />uncertainties, it is recommended that the Franchise Authority: <br />I. Direct AOL-Time Warner a) to be bound by the Cable Television Franchise Ordinance <br />and perform all duties and-obligations ofthe grantee thereunder, b) represent and warrant <br />that they are able to provide, and shall agree to provide subscribers all services required <br />under said franchise subject to changes or modifications as permitted under the franchise <br />and applicable law; c) aclrnowledge and agree that they were, and shall be subject to the <br />local regulatory authority as set Earth by the FCC; and d) cooperate fully with the <br />franchise authority and to obtain from any governmental agency all licenses, permits <br />and other approvals necessary for lawful operation and maintenance of the cable <br />television system. <br />II. Require AOL-Time Warner and AT&T to affirm that as the new owners and management <br />entity, shall be bound by the terms and conditions in the present franchise agreement and <br />the transfer resolution. <br />Il'I. Advise AOL-Time Warner that the franchise authority shall exercise its rate regulatory <br />prerogatives pursuant to the Cable Act of 1992 to ensure that the current value placed <br />upon the intangible assets of TWEAN shall not increase as a result of the transfer and <br />adversely impact subscriber,r~.tes. <br />1V. Require AOL-Time Wamer.to implement Open Access to protect the public interest and <br />ensure continued competition among and between Internet Service Providers (ISPs) and <br />equal access to the cable modem broadband platform by customers served by unaffiliated <br />ISPs. <br />V. Respect Time Warner Cable's First Amendment right with respect to program selection <br />and side step Open Access issues pertaining non discrirtunatory mandatary dial position <br />on the cable system platform and program fees payment to unaffiliated program <br />providers. This issue is best addressed by the federal government; action by the US <br />Congress or the federal court system may be necessary to satisfactorily resolve this public <br />policy debate. <br />-g_ <br />