E.B. debates pros, cons of statewide cable deal BY VINCENT TODARO Staff Writer EAST BRUNSWICK –– Township officials are pondering the benefits of the longtime municipal franchise agreements with cable companies and the dramatic changes proposed by Verizon. Cable companies, which in East Brunswick’s case is Comcast, have for more than 30 years done business with New Jersey towns by hammering out long-term franchise agreements with municipalities. But a new law allows companies to apply for statewide television franchises. Verizon is the first company to threaten the hometown cable rule, which some say is a more costly system, by applying for approval to offer video programming. During Monday night’s Township Council meeting, GOP councilwoman Christi Calvano gave a presentation outlining the situation, and Mayor William Neary followed up with comments of his own. They agreed that the financial benefits to customers and towns, part and parcel of Verizon’s pitch, are questionable. The council did not take a stand in favor of one system or another. Although the statewide agreement would actually bring more money back to the towns, that money would actually be coming from the customers who pay for the cable service, Neary noted. As part of the deal of being granted statewide access, Verizon would pay a franchise fee of 3.5 percent of gross revenues to a town it serves. Comcast currently pays a fee to East Brunswick that used to amount to 2 percent of the basic cable fees, but was changed to 2 percent of gross revenue. Those Comcast funds are used to help finance the township’s own cable access station, EBTV. “Franchise fees are paid by consumers,” Neary said. Verizon reportedly plans to charge $42.99 a month for its proposed cable service, but it is not known just how much it will charge for a combined television, telephone and Internet service, which is offered by cable companies like Comcast and Cablevision. Verizon has argued that cable companies have a monopoly on the service they provide in each town, which results in higher cable rates. The cable industry has argued, in response, that they do have competition in the form of satellite system providers. Calvano said the township’s current contract with Comcast will nonetheless continue until its expiration or until the company converts to a statewide agreement. That’s not something the company is seeking, however. Also, the current system allows towns to have a cable complaint office, as is the case in East Brunswick. Calvano said a statewide agreement would mean that complaints must go through the state Board of Public Utilities, which would have 30 days to respond. The new statewide agreement would still provide two local cable channels, she noted. Neary said he had meetings with Verizon, which asked for East Brunswick’s support in acquiring the statewide agreement. He said the township agrees that competition is healthy. What bothers him about the statewide deal, though, is the lack of a local complaint office and the fact that the state would take power out of local hands. Another concern is that, at least in the beginning, Verizon would likely only provide service to wealthier communities, Neary said. He added, however, that he received assurance from Verizon that it would cover East Brunswick. Council Vice President Donald Klemp said it would be easier to put new infrastructure in the form of fiber-optic network into less-populated areas, which could affect the sequence of towns receiving service. East Brunswick, of course, is largely populated. Council President Nancy Pinkin said the order of towns receiving service is an unknown, as is how to deal with linking up multi-unit dwellings. Calvano said she was unsure if Verizon would choose East Brunswick as one of its first communities for cable.