CABLE Competition Act

The CABLE Competition Act amends the Communications Act of 1934 to change how cable system sales and transfers are treated by local franchising authorities. Key changes include that, when a franchise is revoked and the cable system is acquired or its ownership is transferred, the sale must reflect fair market value. It also restricts franchising authorities from blocking a transfer of a franchise to a different party (as long as the new owner agrees to assume all existing franchise terms) and adds a straightforward notification requirement of up to 15 days before a transfer. The bill defines “transfer of a franchise” very broadly to include mergers, sales, assignments, restructurings, and transfers of control. It takes effect six months after enactment and applies to franchises granted on or after the effective date, or to certain pre-existing franchises under specified conditions. In short, the bill aims to make it easier to transfer ownership of cable systems by limiting local government interference (bocusing more on market terms and transfer mechanics), while also ensuring fair market value when a franchise is revoked and the system is sold or transferred.