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Title 47 — Telegraphs, Telephones, and RadiotelegraphsRelease 119-73not60

§547 Conditions of Sale

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

Last updated Apr 5, 2026|Official source

Summary

When a franchising authority refuses to franchise renewal and then takes over or transfers a cable system, it must pay fair market value for the system as an operating business and must not give the franchise itself any extra value. If the franchise existed on the subchapter’s effective date and has its own sale rules, follow those; if a franchise is revoked for cause, the price must be fair.

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 5, 2026

Release point: 119-73not60