Competitive Cable Television and Open Video System (OVS) Review

In 2008, CSG consulted the City of Monrovia in performing due diligence relating to the transfer of ownership of the City's competitive wireline video service provider, Champion Broadband, California LLC to CBC Holdings LLC.  CSG conducted a review of financial and technical qualifications and audited the selling party's compliance to franchise provisions, franchise fee payments, and PEG fee payments.

In 2007 and 2008 assisted the cities of Claremont, Covina, Diamond Bar, La Verne, San Dimas, and West Covina in studying issues pertaining to Verizon's application for a state video services franchise.  Also, in 2007 and throughout a portion of 2008, served as a resource to Inglewood, Long Beach, Manhattan Beach, Monrovia, Pasadena, Redondo Beach and Walnut in addressing regulatory matters associated with Verizon's, AT&T's and/or their incumbent cable television provider's application for a state video services franchise.  Topics included franchise fees, PEG fees, customer service standards, and permitting issues.

In 2006, CSG consulted the Cities of Manhattan Beach and Redondo Beach in awarding a competitive cable television franchise agreement to Verizon Communications. This work included extensive evaluation of level playing field issues associated with the incumbent cable operator; Public, Education and Governmental, and I-NET obligations. CSG also provided draft language for the franchise agreements in the areas of definition of gross revenue, customer service, and franchise fee reporting requirements

In 2003, on behalf of Arcadia, Monrovia, and Pasadena, CSG researched and audited the calculations of Altrio Communications in the proper payments of PEG grants and fees in compliance with the agreements between Altrio and those cities respectively.

From 1999 to the present, CSG has assisted the following California cities with professional support related to granting of franchises to competitive cable television and OVS providers:



Hermosa Beach


Los Angeles

Redondo Beach

Manhattan Beach

Sierra Madre

The competitive OVS companies involved were RCN, Western Integrated Networks, Champion and Altrio Communications.  CSG performed detailed financial analysis, an evaluation of the incumbent cable companiesí PEG obligations, a review of other contractual franchise provisions, and assisted the respective City Attorneys in crafting language for the competing cable television or OVS franchise agreements.  Incumbent cable companies involved in these proceedings included Adelphia and Charter Communications.

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