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The franchise fee is set during initial negotiation of the franchise agreement, usually by a process in which the government requests bids from cable providers to serve their community. This fee can be renegotiated when the franchise agreement comes up for renewal, usually at intervals of 10 to 12 years.
The Cable Television Consumer Protection and Competition Act of 1992 (also known as the 1992 Cable Act) is a United States federal law which required cable television systems to carry most local broadcast television channels and prohibited cable operators from charging local broadcasters to carry their signal.
In the United States cable television industry, a cable television franchise fee is an annual fee charged by a local government to a private cable television company as compensation for using public property it owns as right-of-way for its cable lines.
Franchise fees are paid to local governments as compensation for Comcast's use of the public rights-of-way and easements. The Federal Cable Act authorizes cable operators to collect from customers the full amount of franchise fees paid to local governments.
In the United States cable television industry, a cable television franchise fee is an annual fee charged by a local government to a private cable television company as compensation for using public property it owns as right-of-way for its cable lines.
The franchise agreement is a legally binding contract. It sets out the rules of the franchising relationship that both the franchisor and franchisee have agreed to.