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OpenBand Franchise Renewal Denied..

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The County BOS just voted to deny the OpenBand franchise renewal, 8-1.

FYI.

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Permalink Reply by Osman on November 2, 2011 at 11:57am

Does this mean that by June 30, 2012 OpenBand has to transition to another cable provider?

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Permalink Reply by viii_ball on November 2, 2011 at 1:44pm

According to news reports...

The denial of the county franchise agreement means OpenBand can no longer use the public right of way to provide service after June 2013.

OpenBand has the option of transferring its exclusive easement with Van Metre to another company, but under the contract residents of the communities would still have to pay for the service unless the federal courts deem the contracts illegal.

So as I read this, on June 1, 2013 us LOTP residents will no longer be legally served by OpenBand but "unless the federal courts deem the contracts illegal" we will have NO service or the same no choice if the OB contracts are assumed by another provider.

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Permalink Reply by Bob Jaeger on November 2, 2011 at 2:03pm

Here is the article:

OpenBand

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Permalink Reply by Osman on November 2, 2011 at 4:03pm

I still don't get it. So they can no longer use the public right of way...what does that mean? They won't be able to provide TV service at all in Loudoun County? If that's the case why does it say OpenBand has the "option" to transfer the agreement...what if they don't?

It seems that we still are going to be required to pay for cable TV as part of our HOA dues, but OpenBand has the option to transfer the exclusivity agreement to someone else. Basically OpenBand is going to pick who provides our cable service after next year and we don't have a choice.

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Permalink Reply by Myra on November 2, 2011 at 5:45pm

How what?

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Permalink Reply by AGDIL on November 2, 2011 at 6:23pm

There are multiple fronts to this business contract. This Loudoun BOS Franchise agreement is 1 aspect of this case.

There continues to be a lawsuit pending brought by the Lansdowne on The Potomac HOA.

There are also FCC investigations.

The legal complaint is located on the HOA website and attached here for review.

Attachments:

OpenBAnd Lawsuit Complaint 2011-08-16.pdf, 651 KB

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Permalink Reply by johnf on November 2, 2011 at 10:01pm

There is an inaccuracy in that article and in the comments here. The CURRENT date in June 2013. The county can extend the existing Franchise agreement indefinitely pas that date as per section 5.9.1 of the agreement. Basically this is a step in the process. The county has rights now also to buy the Openband from them at Fair Market Value. This is not something they have said whether they will do or not. They can buy it and resell it to anyone. Likely they would do it to someone we wanted.

Also, the lack of Franchise allows us to declare breach of contract on the agreement and potentially on the easements. Also the county can condemn the easements potentially.

There are a lot of moving parts here. This includes an antitrust investigation by the state and our lawsuit and Southern Walk's lawsuit.

So Openband CANNOT simply pick another provider. We have rights under our HOA contract which is not covered in this article and whomever might someday pick up their contract would be bound to our HOA contract until we get rid of it, so they have to at least deliver as well as Openband. They also cannot EVER NOT provide service until someone else does.

There is ZERO chance of us legally losing our service in 2013 or any other date. There is little chance they could move it to a company without our agreement. Even if they did they would have to be as good as Openband by the contract.

Please ask me questions if you like. I am not a lawyer, but I have read all the legal analysis that is public - every single page - and I have read all the agreements and I have been involved in this issue for a few years now closely. I would be happy to quote the provisions that backup what I say.

As an example, for the 2013 end date being extended, I will cite 5.9.1 of the Franchise agreement:

The original franchise contemplated a denied franchise in section 5.9. It specifically has a provision that gives the BOS the power to compel Openband to continue to provide services for any length of time the BOS may determine they should. The sentence in question is within 5.9.1 and it states (emphasis mine):

“The transition period shall be no longer than the reasonable period required to select another grantee and to build a replacement System, if necessary, and shall not be longer than thirty six (36) months, UNLESS EXTENDED BY THE COUNTY FOR GOOD CAUSE.”

Please know that many sets of lawyers have looked at this and agree almost completely. Our lawyers, Southern Walks, and the County lawyers all came to similar conclusions. Nothing is ever certain in the law, but we are doing the right thing and the county did the right thing. Openband CHOSE not to negotiate with us or anyone. AT ALL. Not a single thing was ever offered except the meaningless concessions they made to the OVS commission. Nothing to us.

Anyway, I will be happy to answer the questions and cite my evidence for anyone concerned.

When I get a chance I will notify that reporter of the incompleteness of that detail in the article.

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Permalink Reply by Osman on November 2, 2011 at 10:25pm

Thanks John for the clarification. It definitely helped me get a better understanding of the situation. As you said, there are many moving parts so for someone like me, who is new to the whole situation, it is rather confusing.

johnf said:

There is an inaccuracy in that article and in the comments here. The CURRENT date in June 2013. The county can extend the existing Franchise agreement indefinitely pas that date as per section 5.9.1 of the agreement. Basically this is a step in the process. The county has rights now also to buy the Openband from them at Fair Market Value. This is not something they have said whether they will do or not. They can buy it and resell it to anyone. Likely they would do it to someone we wanted.