Cable Pitches Method for Determining In-Kind Contribution Fair-Market Value
The cable industry is floating a proposed methodology for establishing fair-market valuations of cable-related in-kind contributions. A docket 05-311 posting Friday on a meeting with FCC Media Bureau Chief Michelle Carey and Office of General Counsel staff said the three-step…
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process would begin with cable operators identifying the fair market value of in-kind contributions based on existing market metrics, followed by local franchising authorities having some period such as 60 to 90 days to decide whether they want to keep, reduce or forego their in-kind contributions and notify the MVPD. Step three would be the cable operator implementing the LFA's election. The cablers said if an authority doesn't give notice of its election within the time frame, the operator would cut franchise fee payments based on its valuation information until it gets election notice. They anticipated few disputes over fair market value because of the numerous alternatives for most cable-related in-kind contributions. The cablers said the FCC should make clear that disagreeing with the value of an in-kind contribution isn't a valid reason for a franchise authority to delay or deny a new or renewed franchise agreement. Representatives of NCTA, Comcast, Charter Communications and Cox attended the meeting.