Cable Franchise Renewal and Transfer Paves Way for Interactive Services

db/cable.pr 98-41
Contact: Jerry Pasternak, 301-217-2500
Jane Lawton, 301-217-7372

For Immediate Release: February 9, 1998

Cable Franchise Renewal and Transfer
Paves Way for Interactive Services

Montgomery County's more than 200,000 cable television subscribers should see
substantial improvements in their cable service as a result of the renewal and transfer of the
cable television franchise. A public hearing in Rockville is scheduled for Monday, March 2
at 7 p.m. to seek citizen views on these pending actions.
County officials today announced details of a new 15-year cable television franchise
agreement negotiated with the cable company that will provide more subscriber choices and
will pave the way for a cable service that offers high-speed internet connections and
"programs on demand."
"This agreement should bring our cable subscribers into the 21st century with new,
state-of-the-art equipment that will provide the convenience of interactive communication and
the value of more choices to better suit their needs," said Jane Lawton, the County's Cable
Communications Administrator.
As part of the agreement, the cable system will receive a $140 million rebuild, using
optical fiber with 750MHz capacity -- allowing digital services that will enable the franchise
to provide a variety of interactive features.

In addition, the agreement provides for ten additional channels, bringing the current
lineup to 82 channels. An expansion of the County's institutional network (I-Net) will also be
constructed, linking 78 additional County sites to the County government fiber system and
providing $19 million during the franchise term for capital and operating support of the I-Net.
Public, Education and Government (PEG) channels will continue to be offered under the new
agreement, and the cable company will provide $28 million to support these channels. The
agreement also provides for improved customer service efforts that will ensure prompt
response to subscriber requests and an equitable resolution of billing complaints, as well as
expansion of the cable system to the newly-annexed area of Takoma Park.
A draft franchise agreement and related documents are available for review in the
County's four regional libraries -- Rockville, Bethesda, Gaithersburg, and Wheaton -- and in
the County's Cable Office, located at 100 Maryland Ave., Suite 250, Rockville.
In a separate action, the current franchise owner, SBC Media Ventures L.P., has
requested transfer of the franchise to Prime Communications Potomac, LLC, which includes
the Washington investment firm The Carlyle Group. Prime Management, LP, an affiliate of
Prime Communications, has been managing the cable system since 1995 and will continue to
do so. The County has the right to approve or deny the transfer of the franchise and is
currently reviewing the SBC request to determine the legal, technical and financial
qualifications of the new owners to operate the system and meet the obligations proposed by

the new franchise. The transfer application and related documents are also available for
public review in the four regional public libraries and in the Cable Office.
Annual rate applications are filed with the Federal Communications Commission
(FCC) each March. It is expected that the cable company will seek a rate increase in the near
future. However, the projected impact per subscriber as a result of this franchise renewal and
transfer is expected to be minimal.
The public hearing will be held in the third floor Council Hearing Room of the Stella
Werner Council Office Building in Rockville. Citizens interested in testifying may pre-
register by contacting the Cable Office at 301-217-1297. Written comments may be
submitted until Monday, March 9, 1998 to the Montgomery County Hearing Examiner, c/o
Cable Office, Stella Werner Council Office Building, 100 Maryland Avenue, Suite 250,
Rockville, Maryland 20850. Comments may also be submitted via e-mail to
al.lister@montgomerycountymd.gov.
For more information about the cable franchise renewal or transfer, contact Jane
Lawton, Cable Communications Administrator, at 301-217-7372.
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