Monday, June 17, 2013

Clueless Wincam employee (soon to be Ex-employee?) public liar Joe Viglione still doesn't understand the PEG franchise fees

On public figure Joe Viglione's blog last night he wrote the following about the cable franchise fee:
As a follow up to my June 14 essay, Building an Access Television Station for the city of Medford, readers may want to know where the monies for Public, Educational and Governmental Access TV come from (P/E/G is the sort-of acronym, with slash marks in between.) It is the franchise fee on your cable TV bill and it is found on two separate lines on your bill if you have Comcast. The director of operations for Medford Community Cablevision, Inc. stated on May 21, 2013 to the City Council that it was a mere thirty five cents, and he stated this as if it were a fact. The fact is that the two fees on one recent bill were Sixty Eight cents for the "Franchise Related Cost" (almost double the small 35 cent figure given to the community by TV3) as well as an additional $3.97 for what is called the Franchise Fee under TV. So that's $4.65 total, and hold onto that number as we explore the cable subscriber base and do a little arithmetic.

If the cable company agrees to wire more classrooms for cable, if they agree to buy police cruisers for the city, If they agree to by a fire engine for the city if they agree to etc etc etc, in order to get a contract with The City to provide cable TV; all these things they charge back the combined cost of to the ratepayer as "franchise related costs".

And Tv3's station manager was talking about only the public access portion of the franchise fee in that City Council discussion; the portion that Bob Penta claims the ratepayers are entitled to a reimbursement for. That's 1/5th of the franchise fee. This fee is 5% of the cable only portion of the bill. It doen't include the telephone and internet portion. Many people (such as seniors on a fixed income) have the "limited basic" service, which is around $12-$13. One percent of $13 (which is TV3's 1/5th of the 5%) comes to only 13 cents for these subscribers. So taking 1/5th of the combined single franchise fee that goes to PEG comes a lot closer to the 35 cent figure given to the City Council than the inflated figure you are estimating, Joe.

I'm surprised you don't already know all this Joe, since you claim to be such a big expert on PEG what with all the years you put into it. Just goes to prove the judge in Woburn court was right on when he wrote that you know nothing about business and next to nothing about PEG.

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