American Enterprise Institute
How local government gets in the way of better, faster, and cheaper broadband
Many complain about the price of cable, but few realize that key culprits can be state and local franchising authorities (LFAs), whose taxes, fees, and surcharges on top of the basic price can account for 20 percent or more of the total price. Operators need to secure a franchise agreement to build and run cable service, and that can entail acceding to all types of demands from LFAs over and above the franchise fees that operators have to pay under federal law.