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13 <br />D. Public Policy Questions to Consider <br />The questions for local government officials to weigh fallow. <br />Without Open Access AOL-TW Internet service subscribers maybe directed first <br />to Company or affiliated content providers and would have to perform intense <br />searches to find similar content and e-commerce retail outlets offered by <br />independent providers. <br />The Internet, atwo-way communication pathway, came of age over the common <br />carrier telephone system. Recently, it made a transition to the cable television <br />broadband platform. If local government concludes the Internet must be an "open <br />medium," and that it is a significant public interest issue, then it must act to <br />preserve the Internet's common carrier heritage. Absent any requirement by <br />government to obligate AOL-TW to the terms of the MOU, AOL-Time Warner <br />has the power to limit their customers from web content offered by unaffiliated <br />Internet service providers. <br />2. Whether local government should take up the gauntlet and become involved in <br />over azching anti-competitive monopolistic concerns, such as the City of <br />Portland's stance on Open Access, currently before the 9th Circuit Court of <br />Appeals, is a legitimate public policy question. As Portland learned, doing so <br />may result in substantial legal defense expenditures. Henrico County, Virginia is <br />now traveling the same path. <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 guazd against possible <br />uncertainties, it is recommended that the Franchise Authority: <br />Consent to the transfer with conditions; and <br />2. Certify that the current .franchise is in full force and effect; and <br />3. Direct AOL-Time Warner to be bound by the Cable Television Franchise Ordinance and <br />perform all duties and obligations of the grantee thereunder; and <br />Franchise Fee U-Tax Auditing & Cable Television Administration <br />101 Pocono Lane, Cary, North Carolina 27513-5316 Voice # 919.467.5392 Fax # 919.460.6868 <br />