Laserfiche WebLink
<br />III. SIGNIFICANT ISSUES <br /> <br />A number of significant issues require merit comment with regard to the <br />requested transfer. <br /> <br />A. System Build-Out <br /> <br />As has been noted, in 2004 RCN was relieved of certain obligations during <br />the time that its parent company entered into bankruptcy. Although Astound has <br />indicated that it is not requesting any changes to the current agreements (as <br />amended), the SAMCA T communities may wish to discuss with Astound the <br />possibility of reinstating some of the obligations that were modified, including <br />system construction timetables. <br /> <br />B. Activation of PEG Access Channels <br /> <br />The RCN agreements contain an obligation that RCN (or its successor) is <br />obligated to provide up to two additional Public, Educational and Governmental <br />(PEG) access channels to match the number of channels provided by the <br />incumbent cable operator (Comcast). TMC has been informed that the SAMCA T <br />communities are planning on asking for the activation of these channels. <br />According to the terms of the existing agreements, the cable operator will have <br />up to 180 days to make the channels available. <br /> <br />The SAMCA T communities may wish to use the transfer as an opportunity <br />to establish a date specific for the activation of these channels by RCN or its <br />successor. <br /> <br />C. Available Financial Resources <br /> <br />As noted above in Section II.D(1), the parent of Astound (WaveDivision) <br />appears to have adequate financial capability to acquire and operate this system. <br />However, it would prudent for the SAMCA T communities to confirm that the <br />funds that appear to be available for the RCN operations have not been <br />committed for other purposes. <br /> <br />There also is a reasonable question as to whether the currently available <br />financial resources are sufficient to fund additional system construction in the <br />area, and whether Astound has any intentions to commit to additional system <br />build-out. <br /> <br />D. Potential Impact on Subscribers <br /> <br />The transfer of the franchises to Astound may have both a positive and <br />negative impact. The positive impact may be that Astound completes the <br />construction of the system that was postponed during the resolution and <br /> <br />13 <br /> <br />6.3D <br />Page 17 <br />