Council Clears Way for Time Warner Cable

Time Warner received unanimous approval Wednesday from the Los Angeles City Council to eventually become the new cable provider for most Los Angeles residents.

Time Warner and Comcast are buying Adelphia, one of the city’s largest providers, pending approval from the Federal Trade Commission and Federal Communications Commission.

As part of that deal, Time Warner would eventually assume Adelphia’s and Comcast’s customers in L.A., making it the provider for about 98% of the city. It currently serves about 20% of the city. During a short debate, council members said they believe the deal will benefit residents because Time Warner has a better reputation for service than Adelphia.

In a Nov. 14 letter to city officials, Deane Leavenworth, vice president of corporate relations for Time Warner, wrote: “While the availability of advanced cable services will increase as a direct result of this transaction, cable rates will not increase as a direct result of this transaction.”

Time Warner officials have said they will hire about 4,000 Adelphia and Comcast employees at similar positions and wages.

The transfer agreement approved Wednesday is a prelude to the city negotiating a contract that allows Time Warner to operate in Los Angeles. That contract is the vehicle in which the city can push for better customer rates and hammer out the fees that cable firms must pay the city.

The city’s contracts with its current cable providers expired three years ago. City Controller Laura Chick has blamed the city’s Information Technology Agency for the delay in reaching new ones. Agency officials have said it’s up to the council to work out those agreements.

In a related issue, the council in closed session approved a $4.5-million settlement offer from Adelphia. The company was sued to recover money it owed the city.