H.R. 4927: Consumer Access to Broadband for Local Economies and Competition Act

This bill, titled the Consumer Access to Broadband for Local Economies and Competition Act, aims to amend the Communications Act of 1934. Its primary focus is to change the rules regarding the sale and transfer of cable systems by cable operators.

Key Provisions

• Removal of Approval Requirement: The bill prohibits local franchising authorities from requiring their approval for the sale of cable systems. This means that cable operators can sell their systems without needing to get specific permission from local governments.
• Fair Market Value: If a cable operator's franchise is revoked and the local authority acquires the cable system, the acquisition must be at fair market value. This provision ensures that any transfer of ownership following a franchise revocation is conducted fairly and reflects the true value of the system.
• Notification of Transfers: When a cable operator transfers a franchise to a new owner not originally granted that franchise, they must notify the franchising authority in writing at least 15 days prior to the transfer. This notification is a way to keep local authorities informed about changes in ownership.
• Definition of Franchise Transfer: The bill defines "transfer of a franchise" to encompass various ways a cable operator might change ownership of their services. This includes mergers, sales, assignments, or any restructuring that involves transferring control over a cable system.
• Effective Date: The changes laid out in the bill would take effect 6 months after the bill is enacted, applying to both new franchises granted after this date and older franchises still in effect at that time.

Application of the Law

The law applies to any cable franchise granted on or after the effective date. It also applies to previously granted franchises if they are still in operation or if the cable operator has been continuing to operate under the franchise, regardless of its expiration.

Relevant Companies

• CMCSA - Comcast Corporation: As a major cable operator, changes in franchising rules could directly impact Comcast's ability to freely sell or transfer its cable systems, potentially altering its market strategy and operations.
• T - AT&T Inc.: AT&T, which also operates cable systems, may benefit from reduced barriers to transfer ownership of its cable franchises, allowing greater flexibility in managing its assets.
• VZ - Verizon Communications Inc.: Verizon, involved in providing cable services through its Fios brand, could see an impact on how it manages and transfers its cable franchises, influencing its competitive positioning.