From the office of Councilman Joseph Bartenfelder

March 5, 2007

PRESS RELEASE
For immediate release
March 5, 2007
Contact: 410-887-5223

County Council District 6 update
By Councilman Joseph Bartenfelder

Baltimore County cable television customers soon will have an option. I am happy to report that in response to citizen input, the County Council has unanimously approved a franchise agreement with Verizon Maryland to construct, operate and maintain an alternative cable system in Baltimore County. Much of Eastern Baltimore County, including Essex and Parkville, will be among the first to be offered Verizon cable service with the initial phase of construction set to begin within 12 months and completed in three to five years.

Verizon filed an application for this franchise in June 2006 and after evaluation by the county Office of Law and a public hearing in August, our Telecommunications Advisory Panel determined that the public interest would be served by offering a competitive cable franchise. In September, Verizon was granted a 15-year nonexclusive cable service agreement with a projected 10-year build-out conditioned upon County Council approval. Following further study and discussion, this resolution, sponsored by all council members, was voted upon and passed unanimously at our March 5 meeting.

There are several public benefits to this agreement. The franchise sets forth to Verizon specific performance obligations and terms, including one basic service hook-up to each county building, such as courts, schools, senior centers, public libraries, police and fire (including volunteer) stations. In addition, the franchisee must provide three free channels, one each for public, education and government.

Monetarily, the county's general fund will benefit from payment by Verizon of a franchise fee of 5% of gross revenues. We are pleased that last year's franchise fee payment from Comcast was passed on to homeowners through our ability to issue a 1.5-cent reduction in the property tax rate. And we anticipate that fees to be paid by the new franchise holder will be similarly distributed.

Currently in Baltimore County there are 220,000 cable subscribers relying on one company, Comcast, for service. While the county's relationship with Comcast has been outstanding, competition, such as Verizon's entry into the county cable market, is healthy. I expect that competitive service will push both franchise holders to higher levels and perhaps even more affordable rates.