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Franchise fees are paid to local governments as compensation for cable companies 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. Franchise fees are governed under Section 622 of the Cable Communications Act of 1984. Section 622, states that municipalities are entitled to a maximum of 5% of gross revenues derived from the operation of the cable system.
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The short answer is we don’t stop any cable provider from offering service in the Township. Currently, the Township has two State of Michigan generated franchise agreements in place (Public Act 480 of 2006) - Comcast/Xfinity and AT&T U-verse. As State and Federal legislation states, no community is allowed a legal monopoly. AT&T’s agreement was filed in 2007, bringing a welcomed addition to the Township’s options when it came to cable television service. Macomb Township does not have an exclusive contract with any one provider and cannot turn away service from any provider. We welcome the option of providers for residents to have a choice. Macomb Township has no jurisdiction over satellite providers, internet providers, cellphone or telephone services.According to WOW (Wide Open West) several factors heavily influence the non-selection of our community for cable TV service including its proximity to their existing systems, the density of homes within our area, system construction type (aerial vs. underground) and local business and state tax incentives just to name a few.Macomb Township does not prohibit other cable providers from offering service within the community. In fact, Macomb Township would very much favor it. However, as stated above by WOW, the decision is not the Township’s alone. Residents of Macomb Township may contact other cable providers to request service in the area; the more that do, the more inclined cable providers will be to consider Macomb Township as their next place of business. Click here for more info.