Time Warner Wins on Fees

Coverage Type 

[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
A federal judge has ruled that Time Warner Cable may refuse to pay franchise fees on cable-modem service revenue, handing the cable company a legal victory over the city of Minneapolis, Minnesota. The ruling, handed down Nov. 10 by U.S. District Judge Ann D. Montgomery, accorded with other modem-fee court rulings and key rulings by the Federal Communications Commission. A spokeswoman for the Minneapolis government was not immediately available to comment on a possible appeal. Judge Montgomery agreed with Time Warner that franchise fees may be collected only on cable services. She noted after the FCC classified cable modem service as an information service in 2002, cities lost authority to impose the typical 5% fee on cable data revenue.
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