Cable contract negotiations with Charter and Verizon nearing conclusion

Cable Committee members Richard Gallant and Ken Faubel recently met with the Board of Selectmen to update them on the status of their cable contract negotiations. They reported that, over course of the past year, the Cable Committee has been working with Charter to renew their existing cable contract and with Verizon to establish a new cable service contract. The committee hopes to finalize both contracts within the next few months.

Early last year, the Cable Committee surveyed residents to assess the quality of cable service to date and resident's level of interest in having a new service option. Currently, Dunstable residents have three options for TV service: cable service from Charter, satellite service from providers like DirectTV, or using a rooftop antenna. Residents primarily expressed interested in keeping costs down. No-one wanted to see the franchising fee increased to improve program capabilities. (As part of Groton's cable contract, they have a broadcasting studio with staff that is financed through their cable fee structure.) Some residents for whom installation involves running a long line in from the street do not yet have cable service. They are unhappy that Charter is asking them to pay the whole cost of installing the line needed to service to their house. Many residents expressed interest in having alternative service providers.

Over a year ago, Verizon began installing FiOS cable throughout the town, which is initially providing an alternative high-speed internet and phone service. These services can be sold without any contract with the town. Some residents have already subscribed to the high-speed internet and phone services and are generally happy with the service. Once they have a signed cable contract, Verizon will also be able to offer digital TV service through FiOS. Verizon's package of FiOS services would then be in direct competition with package of services offered by Charter. Individuals will have a choice of providers for all three services - phone, internet, and TV.

The initial phase of Verizon's FiOS installation has been limited to running overhead lines on telephone poles; they have yet to install the cable in many of the neighborhoods that have underground lines. Recently, some Verizon sales people caused some confusion by mistakenly knocking on a some doors to solicit Dunstable customers in advance of the FiOS cable installation in those neighborhoods; they were apparently meant to be in Barnstable. Verizon's biggest issue on extending service to all residents is resources; Dunstable is very spread out compared to other towns in Middlesex County.

Verizon has a strong interest in getting the cable contract settled within the next few months. To date, Verizon has been negotiating cable contracts on a town-by-town basis, which is expensive and complicated. A bill is currently on the State House floor that would allow providers to establish a state-wide contract, which would eliminate the requirement for providers to negotiate with individual towns. Verizon may be holding off a bit on negotiations with the town in anticipation that the bill will soon be passed.

The Cable Committee has been exploring the potential for equipment or service upgrades in their contract negotiations. Should the town decide to move forward with such upgrades, there would likely be a corresponding impact on the franchising fee to support those upgrades. Since there is no way to foresee how cable technology will evolve in the next few years, they are building a safety net into the contract to provide room for future technology upgrades, if the town should choose to pursue them.

The Cable Committee recognizes that healthy competition is a good way to improve service for all subscribers. In their contract negotiations, they have been discussing the provision of upgraded broadcast technology through the licensing agreement, but their options are limited. For example, they are not in a position to influence rates or programing. However, they will require that the present public broadcasting capability that gives residents local access to Dunstable, Groton, and Pepperell programming be maintained. Both Verizon and Charter would be required to pay a franchising fee to the town for their cable service. The Cable Committee will continue to work with both providers to have the best service available to the town.