NEWPORT BEACH : Cable TV Companies Get 10-Year Deals

After months of discussions and more than an hourlong public hearing, the City Council this week granted new 10-year franchises to the city’s two cable television companies.

The franchises are for half the length of time sought by the companies. Council members’ views ranged from support of three-year contracts to endorsements of 20-year agreements.

“What we have here, for all intents and purposes, is a monopoly. There is no good competition, there is no good alternative,” said Councilman John Hedges, who supported a shorter contract.

The council voted 6-1 Monday for the decade-long agreements. Councilman John C. Cox Jr. dissented, saying he supported a longer plan.

A number of residents complained of problems they have had with the cable companies and recommended shorter agreements. Others said they were satisfied with residential service, but wanted more cable services in schools.

Representatives of the companies, ComCast Cablevision Co. and Community Cablevision Co., contended that long-term contracts provide the stability necessary to make extensive capital investments. They said improvements agreed to in the contracts will cost each company more than $1 million.

The contracts require each company to add about a dozen more channels, for a total of 54, set up a channel solely for Newport-Mesa Unified School District broadcasts and hook up a special station for the Fire Department.

“A longer-term contract simply enables us to make a larger investment,” said Community Cable President Don McNutt. “We want to continue to be responsive to our customers, and that means long-term planning, that means the ability to look past the next 10 years.”