California City Sues Time Warner Over Franchise

CALIFORNIA CITY SUES TIME WARNER OVER FRANCHISE
[SOURCE: Technology Daily, AUTHOR: Michael Martinez]
A California city has accused one of the largest cable companies in the United States of operating a cable service without a franchise. The city of Carlsbad, a suburb of San Diego, sued Time Warner Cable in U.S. District Court last month. The city claims that Time Warner has been unlawfully providing cable service there because its franchise is expired in November 2006. The spat began when Time Warner took over the existing franchise for Adelphia Communications last year. City officials have argued that the deal expired late last year but that Time Warner has continued its business anyway. Under a law signed by Gov. Arnold Schwarzenegger (R) last year, cable companies in California will be allowed to abrogate their existing contracts with localities in favor of new statewide deals beginning in January. The law is designed to speed the entry of telephone companies into the state's television market. Time Warner has asserted that the city should have to extend its expired deal until next January, when it is eligible to seek a statewide franchise. The city said in its lawsuit that an extension is not mandated by the law and that Time Warner was unwilling to follow the formal renewal process for the franchise after the law was passed in 2006.
http://www.njtelecomupdate.com/2007/09/calif_city_sues_time_warner_ov.html