§545 Modification of Franchise Obligations

Summary

A cable company can ask the franchising authority (the local government or agency that issued the cable franchise) to change rules in its franchise while the franchise is still active. For changes to equipment or facilities (including public, educational, or governmental access facilities), the company must show it is commercially impracticable to meet the rule and that the change it wants fits that problem. For changes to services, the company must show the mix, quality, and level of services required when the franchise was granted will still be kept. The franchising authority must decide in a public proceeding within 120 days of getting the request, unless both sides agree to more time. If the franchising authority denies the request, the company can ask a court for the change under section 555. A court will allow equipment or facility changes only if the company proves commercial impracticability and that the requested change is appropriate. A court will allow service changes only if the company proves service mix, quality, and level will be maintained. The company may, after 30 days’ notice, remove or replace a specific service if it is no longer available or is only available with a royalty under section 801(b)(2) of title 17 that is much higher than before and not covered by a rate increase. The company may move a service between tiers if the involved tier rates are not regulated under section 543. The company cannot get a modification for any requirement about public, educational, or governmental access. Commercially impracticable: a change in conditions outside the company’s control that made meeting the requirement impossible, where not having that change was a basic assumption behind the rule.