PRIA Logo™
Take the PRIA Score
Title 47 — Telegraphs, Telephones, and RadiotelegraphsRelease 119-73

§547 Conditions of sale

Title 47 › Chapter CHAPTER 5— - WIRE OR RADIO COMMUNICATION › Subchapter SUBCHAPTER V–A— - CABLE COMMUNICATIONS › Part Part III— - Franchising and Regulation › § 547

Last updated Apr 6, 2026|Official source

Summary

When a franchise renewal is denied and the franchising authority takes over or sells the cable system to someone else, the buyer must pay the fair market value of the cable business. The value is based on the system as a running business, and the franchise itself is not counted unless the franchise existed on the effective date of this subchapter and has its own sale rules. If a franchise is revoked for cause and the authority takes over or sells the system, the buyer must pay a fair price. Again, if the franchise existed on the effective date of this subchapter and contains its own price rules for such a transfer, those rules apply.

Full Legal Text

Title 47, §547

Telegraphs, Telephones, and Radiotelegraphs — Source: USLM XML via OLRC

(a)If a renewal of a franchise held by a cable operator is denied and the franchising authority acquires ownership of the cable system or effects a transfer of ownership of the system to another person, any such acquisition or transfer shall be—
(1)at fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the franchise itself, or
(2)in the case of any franchise existing on the effective date of this subchapter, at a price determined in accordance with the franchise if such franchise contains provisions applicable to such an acquisition or transfer.
(b)If a franchise held by a cable operator is revoked for cause and the franchising authority acquires ownership of the cable system or effects a transfer of ownership of the system to another person, any such acquisition or transfer shall be—
(1)at an equitable price, or
(2)in the case of any franchise existing on the effective date of this subchapter, at a price determined in accordance with the franchise if such franchise contains provisions applicable to such an acquisition or transfer.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

For “the

Effective Date

of this subchapter”, referred to in subsecs. (a)(2) and (b)(2), as 60 days after Oct. 30, 1984, except where otherwise expressly provided, see section 9(a) of Pub. L. 98–549, set out as an

Effective Date

note under section 521 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 60 days after Oct. 30, 1984, except where otherwise expressly provided, see section 9(a) of Pub. L. 98–549, set out as a note under section 521 of this title.

Reference

Citations & Metadata

Citation

47 U.S.C. § 547

Title 47 — Telegraphs, Telephones, and Radiotelegraphs

Last Updated

Apr 6, 2026

Release point: 119-73