Other Requirements

A. Types of programming to be offered

B. Community programming needs

C. Research and development

D. Universal service

E. Equal employment/affirmative action

F. Labor policies

G. Competition

H. Open access

I. Local underwriting guidelines

In addition to the major areas outlined above, covering PEG capacity and support, I-Nets, and customer service, there are also a number of other items that are important to a successful franchise.

A. Types of programming to be offered: Although the Cable Act does not permit cities to stipulate specific cable programming, they are allowed to specify broad categories of programs and services.

St. Paul's stipulation concerning types of programming to be offered:

105.(b). The company also agrees to provide the following broad categories of services, in addition to providing the channels for PEG use:

105.(b).(1). Cable services responsive to the needs and interests of the community throughout the franchise term, as determined through surveys or studies of St. Paul subscribers;

105.(b).(2). Public affairs and news programming about the City of St. Paul;

105.(b).(3). Public affairs and news programming about the Twin Cities region;

105.(b).(4). A channel or channels of children's programming;

105.(b).(5). A channel or channels of arts and cultural programming;

105.(b).(6). A channel or channels of programming of special interest to minority groups.

A.2. Portland's franchise also includes a definition of programming categories:

5.3 Broad Programming Categories.

(A) Grantee shall provide or enable the provision of at least the following broad categories of Programming:

(1) Arts, culture and performing arts;

(2) Foreign languages;

(3) Programming addressed to diverse ethnic and minority interests in the Jurisdictions;

(4) National, state and local government affairs; and,

(5) Local Origination Programming concerning local and regional issues, events, and affairs of interest to the Jurisdictions' residents.

(B) Deletion or Reduction of Programming Categories.

(1) Grantee shall not delete or so limit as to effectively delete any broad category of Programming identified in Section 5.3 and within its control without the consent of the Jurisdictions or as otherwise authorized by law.

B. Community programming needs: In addition to outlining broad programming categories, cities can also require periodic surveys of community programming needs. Palo Alto's requirement for such surveys is typical.

Palo Alto's requirement for periodic community programming surveys:

7.12 Ascertainment of Programming.

7.12.1 TCI [now Comcast] shall periodically conduct an ascertainment of the programming needs, interests, and preferences of its Subscribers within the Service Area. TCI shall, if requested, report to the City the results (if any) of its programming ascertainment and any actions taken, or to be taken, by it pursuant thereto.

7.12.2 The City at its sole option may undertake a survey of community views of cable operations in the City, including, but not limited to, programming, response to community needs, and customer service.

7.13 No City Control. During the term of this Agreement, the City may not prohibit TCI from providing any program or class of programs, or otherwise censor communications over the Cable System; except that nothing in this Section shall be read to authorize TCI to engage in communications which are prohibited by applicable Law or to allow TCI to exercise any editorial control over PEG channels except to the extent authorized by federal or California law.

B.2. Monterey requires ascertainment of programming needs every three years:

7.12 Ascertainment of Programming. At least once every three (3) years during the term of this Franchise Agreement, the Grantee shall conduct an ascertainment of the programming needs, interests, and preferences of the subscribers within its franchise area. The Grantee shall report to the City the results of the Grantee's programming ascertainment.

B.3. Austin's requirement concerning community-programming needs includes Spanish language programming, closed captioning, and locally based music:

SECTION 6. COMMUNITY PROGRAMMING NEEDS

6.1. In addition to the service requirements in this Franchise, Grantee agrees to provide programming responsive to the Austin community's needs and interest for Spanish language programming.

6.2. This programming shall consist of at least two (2) Spanish language channels.

6.3. The parties expressly agree that the programming described in paragraphs 6.2 and 6.5 represent broad categories of video programming within the meaning of 47 U.S.C. 544(b) (2) (B).

6.4. Grantee shall retransmit all closed-captioned signals made available by programmers in conjunction with programming in its line-up and which are provided in order to facilitate viewing by handicapped persons. Grantee shall maintain the necessary head-end equipment to make SAP features available to Subscribers. Grantee's obligations under this subsection do not extend to providing customer premises equipment.

6.5. Grantee believes there is significant interest on the part of its customers in locally based music. Grantee intends to make available one full-time channel for the exhibition of programming concerning Austin music. Grantee intends to include in its program offering, a channel dedicated to local music throughout the full term of the Franchise, provided quality programming is available and customer interest continues.

6.5.1. Grantee does not intend to undertake any obligation to produce such programming itself, but rather the administration of this channel shall be performed by the City or its designee. Nothing herein shall prevent Grantee, the City, or the channel's programmer from selling commercial advertising time on this channel as agreed by the parties.

6.5.2. During the period that Grantee provides such channel, the maximum number of PEG Access Channels shall be reduced by one.

6.5.3. Notwithstanding any other provision in this Franchise, the Grantee agrees that the programming for this Channel may be transmitted over the Institutional Network to enable distribution to Cable System Subscribers, and all equipment provided for PEG Access may be used for the production of programming pursuant to Subsection 6.5.

C. Research and development:

St. Paul's franchise includes an R&D requirement that covers both service and system capabilities:

Section 307. Research and development.

The company shall, on an ongoing basis, conduct research and development with regard to improvement of existing services, provision of new services and enhancement of system capabilities.

D. Universal service: In an effort to ensure equitable service throughout the franchise area, many cities, including Portland, have adopted universal service requirements.

Portland's "universal service" requirement:

10.1 Universal Service. Grantee shall provide Cable Service to all Subscribers in the Franchise Area under non-discriminatory rates and reasonable terms and conditions. Grantee shall not arbitrarily refuse to provide Cable Services to any Person within the Franchise Area.

D.2. Montgomery County's franchise includes a similar anti-redlining provision:

6 (i) (2) The Franchisee's construction plan shall insure that service is extended to low income areas at least as quickly as it is extended to higher income areas.

E. Equal employment/affirmative action:

St. Paul's franchise includes an equal employment/affirmative action requirement:

Section 203. Equal employment opportunity and affirmative action.

203.(a). The company shall not deny service, deny access or otherwise discriminate against subscribers, channel users or other persons on the basis of race, color, creed, religion, ethnic origin, age, sex, sexual or affectional orientation, familial status, marital status, status with regard to public assistance, or handicap. The company shall comply with all requirements of federal, state and local laws and regulations relating to nondiscrimination.

203.(b). The company shall comply with or exceed all federal, state and local laws and regulations relating to equal employment opportunity.

203.(c). The company also agrees to be bound by all the provisions of Chapter 183 of the St. Paul Legislative Code, including those provisions that apply to persons contracting with the city.

203.(d). The city has a goal of assisting economically disadvantaged businesses to participate in public contracts through its Targeted Vendor Development Program, which is addressed in Chapter 81 of the Saint Paul Administrative Code. The city requires the company to make a good faith effort to purchase goods, supplies, and services from targeted vendors certified with the city during this contract period.

F. Labor policies:

St. Paul's franchise stipulates fair labor policies:

Section 204. Labor policies.

204.(a). The wages and benefits paid to the occupational groups utilized by the company or its contractors or subcontractors in the construction, operation, or maintenance of the cable system shall not be less than the wages or fringe benefits paid to comparable positions in the classified civil service system.

204.(b). The company shall recognize the right of its employees to bargain collectively through representatives of their own choosing in accordance with applicable laws and shall deal with representatives duly elected by a majority of its employees for the purpose of collective bargaining with respect to compensation, hours of employment or any other terms, conditions or privileges of employment.

204.(c). The company shall ensure that at least seventeen (17) percent of its work force is located within the City of St. Paul.

G. Competition: Even though most cable companies enjoy monopoly status at the local level, a number of franchise agreements include provisions designed to encourage competition.

Monterey's franchise includes a competition provision:

SECTION 4. NON-EXCLUSIVE FRANCHISE AND COMPETITION ENCOURAGED

4.1 This Franchise Agreement and the right it grants to use and occupy the public right of way is not exclusive and does not explicitly or implicitly preclude the issuance of other franchises to operate cable systems or other communications systems within the City, affect the City's right to authorize use of the public right of way by other persons to operate cable systems or other communications systems or for other purposes as it determines appropriate, or affect the City's right to itself to construct, operate or maintain a cable system or other communications system, with or without a Franchise.

G.2. Montgomery County's provision encouraging competition:

2(m) Effect of Competition:

(1) The County and the Participating Municipalities desire competition in cable services in Montgomery County and believes competition will benefit the residents of the County and the Participating Municipalities. Further, the County and the Participating Municipalities believe that competition can develop without substantial injury to Franchisee or Franchisee's ability to perform on its promises in this Agreement. The Franchisee has entered this Agreement with a full understanding that the County and the Participating Municipalities intends to encourage the development of competition.

(2) If the County Executive requests, the County, for itself and the Participating Municipalities, may require the Franchisee to increase its Comparable Obligations to the level of the Support Obligations of a Video Competitor if the total Support Obligations of the Video Competitor (excluding franchise fees or comparable fees or taxes) pursuant to any franchise or comparable agreement with the County are greater than the total Comparable Obligations of the Franchisee (excluding franchise fees) under this Franchise and the Settlement Agreement.

H. Open access: Although the status of open access regulations (allowing consumer choice of ISP) is still under review (see the Brand X case currently before the Supreme Court), some cites have incorporated open access provisions in their franchise agreements.

Palo Alto's Open Access requirement:

SECTION 24. OPEN ACCESS

24.1 TCI [now Comcast] shall comply with all applicable and lawful requirements with respect to nondiscriminatory access to its Cable Modem platform(s) for all Internet Service Providers.

24.2 In deploying and offering any Internet access service over the Cable System, neither TCI nor any of its Affiliates shall deny access to, or phase construction or deployment of, such Internet access service to any group of Subscribers or potential Subscribers because of the income, race, color, national origin, religion, gender, sexual orientation, age or disability of the Subscribers or potential Subscribers of the local area in which such group resides.

24.3 Nothing in this Agreement shall be construed as a waiver of any right the City may have under applicable Law to regulate cable modem service offered by cable operators, or of any right TCI may have to challenge any such regulation as contrary to applicable Law.

I. Local underwriting guidelines: Because PEG programming is supposed to be noncommercial in nature, limits on advertising and promotion must be enforced. Austin's local underwriting guidelines might serve as a guide in this regard:

EXHIBIT E

LOCAL UNDERWRITING GUIDELINES

THE PURPOSE OF THE UNDERWRITING GUIDELINES IS TO PROMOTE OR TO CLEARLY IDENTIFY THE UNDERWRITER, NOT TO PROMOTE OR SELL ITS PRODUCT OR SERVICE.

Video

The following video effects are permissible:

1. Standard or existing corporate logotypes, logograms or slogans, both still or animated, which identify but does not promote.

2. One corporate mascot (such as the Exxon tiger) or other symbolic figure developed as a corporate (rather than product) symbol, accompanied by the company's name.

3. One specific product line or brand name, after the funder's name/logo. Symbolic depiction of up to three generic product lines, services or target markets, in addition to the one specific product. Total product depiction must be limited to no more than 50% of the entire credit.

4. Business exteriors, particularly when they are best representation of a funder's product/services (e.g., bank or hospital).

5. Location information--street address, or general reference to area served. Phone numbers are not permitted at any time.

The following practices tend to convey a more "commercial" impression and may not be used:

1. Products in use or operation for the purpose of demonstrating their performance characteristics.

2. Packaged goods (such as food products) shown outside the container or package, or in a prepared state.

3. Depiction of tobacco products, distilled spirits, and firearms.

4. Official spokesperson, company officials, directors or actors posing as "generic" employees.

Audio

The following audio techniques are acceptable:

1. Brief value: neutral descriptions of product, service or target markets.

2. Location information: street address or general reference to area served. Phone numbers are not permitted.

3. Music and sound effects are permitted. However, lyrics sung to music may not be used.

The following audio techniques are disallowed:

1. Comparative Claims: Donor acknowledgments that contain descriptive language comparing underwriter's products or services with those of competitors are not permitted. Avoid words such as: Best, Better, More, Superior.

Examples of acknowledgments that contain these comparative terms are:

"Serving more cities than any other airlines"

"With more assets than any other bank in town"

"Featuring the best products in town"

2. Qualitative Claims: Donor acknowledgments that contain qualitative descriptions of the underwriter's product or service are not permitted. Qualitative descriptions include words that describe the features, benefits, advantages or other qualities offered by underwriter's product or service. Avoid words such as Fine, Excellent, Tasty, or Leading.

Examples of acknowledgments than contain these qualitative claims:

"A leading supplier of automobiles"

"With 20 convenient locations"

3. Solicitations: Announcements that contain a "Call to Action" are not permitted. Most "Calls to Action" contain imperative language. A statement addressed directly the viewer that tells the viewer to take action.

Examples of acknowledgments that contain "Call to Action" statements:

"Ask about our IRA" or "Call us at 555-0000"

4. Pricing Information: Announcements containing price information are not permitted. This includes interest rate information or other indications of savings or value associated with the product or service.

Examples of pricing information are:

"Office products at discount prices"

"Making computer power affordable at every desk"

"8.0% interest rate now available"

5. Inducements to buy, sell, rent or lease: Announcements containing any inducements to buy, sell, rent, or lease are not permitted.

Examples:

"Six months of free service"

"Special gift for first fifty customers"

"Now offering free checking"

Other: All underwriting credits will be 10 seconds in length unless underwriter is an exclusive underwriter.