4. SWCASR 11-29-2012 Robert J.V.Vose
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Minneapolis MN 55402
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http.//www.kennedy-graven.com
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CHARTERED
MEMORANDUM
TO: Sherburne/Wright Counties Communications Commission
FROM: Bob Vose, Attorney
DATE: July 30, 2012
RE: Attorney's Report
Franchise Fee Audit
The Commission solicited quotes from several auditors in relation to a possible franchise
fee audit. The quotes came in higher than anticipated. At the last Commission meeting, I
was directed to investigate whether any Minnesota communities have completed
franchise fee audits that have uncovered significant underpayments.
Red Wing completed an audit several years ago and uncovered a very small
underpayment. I have identified no other communities that have audited Charter's
franchise fee payments in recent years. However, I am representing Owatonna in a
franchise renewal with Charter and the city is considering a franchise fee audit. I will
report on the results of such audit, if any, when completed.
Charter Internet Service
Charter has a new CEO-- former Cablevision executive Tom Rutledge. Under the new
CEO. Charter recently announced several important changes to its cable modem services.
First, Charter announced it will not continue to support customer-owned modems.
Customers will he required to rent a modem from Charter and the rental fee is being
rolled into the base price for the service.
In addition, to boost broadband revenue, Charter is discontinuing its two cheapest high-
speed Internet packages. Customers with an existing 3 Mbps or 15 Mbps account can
keep their existing package but new subscribers will only have a choice of either 30 or
100 Megabits per second tiers.
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