BUFFALO, NY — A new digital move from Spectrum could have some potential impact on the bottom line at Buffalo City Hall. But the firm and the city are now in talks to come up with a new franchise agreement.
City Council officials are also giving the public the chance to learn more about the move of the cable and internet provider to change its cable TV system from analog to completely digital. A public meeting has been set for Monday, April 30th at 5:30 PM at City Council chambers. They will also discuss high speed internet provided by Spectrum.
We have learned that officials of Spectrum and city officials met in March to discuss a new updated franchise agreement with the city. City spokesman Michael DeGeorge says there is no new agreement at this point and future talks are planned.
That move to a complete digital system for cable TV would require people to get additional set top boxes for all home TVs not currently connected to a specific digital receiver. Company spokesman Andrew Russell says Spectrum receivers will run an additional $6.99 per month if the customer is currently in a Spectrum package. It will be $11.75 if the customer has as legacy TWC package. Most customers will be eligible to receive at least one free digital receiver for one, two or five years, depending on their programming package.
It's obviously an extra expense for city residents where Spectrum, or the old Time Warner, still technically has a franchise with the city even though it expired.
Councilman Fontana of the Lovejoy District remembers working on the agreement still in place under the state PSC. That was noted recently with the state attorney general's lawsuit on Spectrum's Internet speed claims.
So does it apply to these new receivers? City spokesman DeGeorge says no because of federal deregulation. Fontana explains further, "As far as the business model that's on their side of the equation it wouldn't be handled in the franchise agreement."
And again that franchise agreement with the city is nearly 20 years old . Fontana says, "We're not up to new technologies. We're not getting what we could use for the city of Buffalo."
There are options as we've told you for picking up the new signal. But more folks may opt to just cut off their cable for an internet TV provider. That's also an issue with all that wiring and old Time Warner, now Spectrum infrastructure.
It's still in use for some but perhaps it won't be used in the future.
Fontana points out, "The city gets five percent of its gross revenues from the cable company because they use our right of way to do business. If they're not using the right of way...if they're going streaming or internet we don't receive revenue from that. So the revenue to the city would go down as their streaming packages go up. So the city could be taking a hit here. So could other cities across the region...Amherst, Cheektowaga as well."
That cable fee for the city is estimated at $1 million or more.
Some may ask why there is no competition for Spectrum in the city. City officials have urged Verizon to install its fiber optic system. But Fontana says Verizon still really doesn't want to have a presence in the city citing cost factors to build out it's own system.
