Adelphia Gets Local Franchise Approvals, Final FCC Nod
Adelphia has won many municipal approvals for its cable system sell-off, moving the bankrupt company a step closer to finishing the $17 billion deal. In the final FCC action on the deal, late Fri. the agency released its order approving the takeover, which had been voted on 4-1 (CD July 14 p1). Local franchise authorities in most areas where it’s selling cable systems approved the transfers to Time Warner and Comcast, officials with Adelphia and cities involved in the deal said. Comcast and Time Warner cleared another local hurdle, agreeing Thurs. to a $3.5 million settlement with Minneapolis, ending a lengthy dispute over franchise terms (CD June 7 p15).
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“There aren’t any issues relating to franchise transfers for this sale to close,” an Adelphia spokesman said: “We had to deal with thousands of them (franchises). There were a few issues here and there, but in general I think it went very well.” Comcast and Time Warner officials didn’t comment by our deadline. “The way is clear to the July 31 closing,” said the Adelphia official, adding that the firms got written permission from franchises affected.
City representatives agreed with Adelphia’s assessment. “Generally I'm not aware of any problem areas,” National Assn. of Telecom Officers & Advisors Exec. Dir. Libby Beaty said: “They seem to have progressed.”
Cities where cable system ownership will change expect to reap benefits from Adelphia’s sale. Minneapolis got Comcast to commit to providing 9 public access cable channels and help building a fiber network. S. Palm Beach, Fla., was promised broadband service throughout the city after Comcast takes over Adelphia systems, Mayor Maurice Jacobson said: “I just hope they live up to that, because if they don’t, I'm going to be the biggest monkey they've ever seen.”
In the Minneapolis area, where Comcast is getting Time Warner systems in the deal, the firms seem to have approval from all area franchises, city cable officer Gail Plewacki said: “I don’t think I know of one that’s outstanding at this point.” Comcast was motivated to strike a deal “because they were going to become our new provider… and they had a deadline in terms of getting that approval,” she told us.
The firms met with FCC officials even after the deal was approved, starting the day after the July 13 agenda meeting, ex parte filings showed. Officials at the firms told an advisor to Chmn. Martin then they “need sufficient time to review the terms and conditions of the agency’s action prior to the anticipated closing of the transactions,” a meeting summary said. Time Warner Cable Pres. Glenn Britt met last week with Comr. McDowell on “arbitration procedures available to unaffiliated regional sports networks and leased access programmers,” said another filing. - Jonathan Make