City Signals AOL, Time Warner About Poor Cable Service

City leaders understand that they cannot stop the merger of the Internet giant AOL and the nation’s leading cable provider, Time Warner.

But by taking no action at their recent meeting on a request to approve the transfer of the city’s cable franchise contract from Time Warner to the new entity, AOL-Time Warner, City Council members hope to send a message.

The message: Garden Grove is unhappy with its cable service provider and the franchise contract is up at the end of the year.

“Of all the cities in Orange County, [Garden Grove does not] have a fiber optics network and we have no cable-Internet access,” said Councilman Mark Rosen. “We’re suffering as a result.”

Rosen compared Garden Grove’s 41% cable subscribership to Huntington Beach’s 66%. Huntington Beach has an adequate fiber optics network, which provides high-speed telephone service and cable-Internet access.

“There are a whole mess of questions to see if Time Warner is fulfilling its obligations to Garden Grove,” he said. “There may be violations.”

Although city officials still question the legality of Time Warner’s decision to black out Disney-owned KABC TV-Channel 9 in early May, federal authorities have determined that the blackout does not qualify for significant penalties.

But the larger issue for Garden Grove remains the state of the city’s cable network.

Time Warner officials have said Garden Grove is scheduled for an upgrade in 2001 and that they would commit to a construction timeline during the renegotiation of the franchise contract later this year.

“It is important that we look at getting the best service possible, whether it’s fiber optics or another specific two-way technology,” said Councilman Mark Leyes.

Leyes had suggested at the meeting to approve the contract that a letter be sent with the city’s concerns to Time Warner, AOL and the federal regulators who still must approve the merger.

“AOL is the Internet. Time Warner is Time magazine, Bugs Bunny and cable,” Leyes said. “If AOL-TW cannot provide Internet-cable access, who can?”

The council decided unanimously to simply receive and file the report of the transfer. Since the transfer will go into effect in 120 days with or without council approval.

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Chris Ceballos can be reached at (714) 966-7440.