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4 <br />Time Wamer agrees that any intemet acx:ess they offer over the cable system <br />would fall under the definition of grass revenues. However,. they have not <br />responded to out request for information as to how they intend to treat~revenues <br />from third parties that might "rent" band width from Tirne Warner in order to offer <br />intemet access.. <br />Time Wamer is requesting "level playing field" language that would require the <br />Grantor to amend. the franchise if a franchise is issued. to any other operator with <br />moro favorable or leaa burdensome temps. TWC also wants to leave open the <br />possibitity of expanding th® franchise to include other communications services <br />and does not want to include language chat will prohibit TWC from taking anti- <br />competitive actions. TJCOG ~necommends that these requests not be gn~nted. <br />Time Wamer also wants language that would allow the transfer of the franchise <br />to another entity under common ownership without requiring grantor approval.. <br />They also want to include a rebuttable presumption that a transfer of 109'0 <br />interest is a transf®r of control; and to restrict the right of the grantor from <br />reviewing a sale price for rate-making purposes. Mr. Sepe and Mr. Permar are <br />advising against this approach. <br />Regarding PEG across, TWC requested TJC4G submit a proposal for public <br />access. Bob Sepe and ~e staff at Raleigh Community Television put together <br />this proposal and submitted it for review to TWC's PEG consultant. A response <br />from TWC's consultant was recent received; Sepe has submitted a second <br />proposal considering and incorporating some of the consultant's suggestions. <br />TWC has proposed a capital contribution to PEG. access of $244,559 for the <br />entire consortium. Mr. Sepe has detem~ined the minimum amount necessary for <br />PEG access senrices for the consortium is $533,603, a cost of $0.15 per <br />subscriber per month over aten-year period. Under Sepe's scenario, local <br />governments would still have to contribute a portion of th®ir franchise fees to <br />cover the annual opera#ing exRenses and to equip meeting rooms for telecasting. <br />We understand this ronewal proCOSS has taken tonger than anticipated, making <br />some councils and commissions. uncomfortable. if you would like to have one of <br />our staff or a member of the negotiating team address this issue at a council <br />meeting, please feel fn~e to contact us. <br />ff you have any questions regarding these issues please feel fre®to Contact me <br />at 558-9403 or,by email at rhoyette®tjcog.org. bob Sepe can be reached at <br />880-3521 or by email at s~p~~sleigh=nc.org. <br />TOTAL F'.03 <br />