Re: Verizon selling off phone lines [Telecom]

Do US telcos get any "freebie" use of public space for > their infrastructure, or do they have to pay market rates > (like land for their COs)?

I can't speak for telcos, but I'll try to answer on behalf of the cable TV industry, which now offers telephone service.

In all states, US cable TV companies are usually required to pay franchise fees based on revenue derived from the provision of video services and certain services incidental to the provision of video services (e.g., equipment rental, ad commissions); however, they are exempt from paying franchise fees on revenue derived from the provision of internet access ("cable modem") service or telephone service. These fees constitute payment for the right to place facilities on public (locally-owned) rights-of-way. Franchise fees are assessed by local franchising authorities (LFAs).

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In some states, cable TV companies are required to pay Real Property Taxes on physical plant. These fees are constitute payment for the right to place facilities on public (state-owned) rights-of-way.

In most jurisdictions, cable TV companies are required to pay property taxes on owned real estate (land and buildings). These are taxes of general applicability, unrelated to the provision of cable TV service; they are based solely on the assessed valuation of the property.

Cable systems owned by non-profit corporations are generally exempt from taxes. They may or may not be exempt from franchise fees, depending on the language in the franchise document itself.

Cable systems owned by government agencies are generally exempt from all taxes and fees.

Neal McLain

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Neal McLain
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When Cox first offered telephone service in my area, they were much more attractive than Pacific Bell (SBC, now AT&T). But, Cox has continued to raise its prices to the extent the advantage is gone. And, Cox doesn't offer network features such as Privacy Manager.

So, if the price differential is minimal, why not go with the 900 pound gorilla that controls the network?

Reply to
Sam Spade

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