The Alliance for Community Media (ACM) asked a group of Capitol H...

the effect that ailing cable companies could have on local govts. could ripple over to other areas, such as education and emergency services. Citing the Adelphia bankruptcy and her fears about the financial health of Comcast and Charter, Riedel said cable systems should be treated more like a utility rather than an entertainment system. “Cable is the major source of information for 80% of Americans,” she said. “Cable companies can’t take their assets with them, leaving cities and counties stuck having to help them through the bankruptcies.” Public, educations and govt. (PEG) access TV channels get their funding through either cable systems or through local govt., she said. Either way, cable bankruptcies could jeopardize PEG funding, she said. Also, Riedel said she feared more bankruptcies could be on the way. She said she was most worried about Comcast because of the $22 billion in debt it took on to buy the AT&T cable system. Also, Charter’s stock was just reduced to junk bond, creating more concerns, she said. Elizabeth Beaty, exec. dir. of the National Assn. of Telecom Officers & Advisors (NATOA), said it’s necessary to make changes to bankruptcy laws to better help local govts. She said under current law, local govts. aren’t considered entities in bankruptcy proceedings, leaving them without a “seat at the table” during negotiations. “Local governments are the licensors, they have the contractual obligations and they manage the right of way that cable companies use,” she said. “They ought to have the ability to speak to these issues during bankruptcy proceedings.” Also, both said the FCC’s ruling that cable modem is an “information service” could cost local governments $600 million a year in lost franchise fees. “It’s welfare for cable operators,” Riedel said.