January 4, 2001
Elizabeth Beaty, Executive Director
National Association of Telecommunications Officers and Administrators
Re: Franchise Fees on Cable Modem Service
Dear Ms. Beaty:
In order to make sure all members of NATOA have the correct information, I'm writing directly to you to provide you with the information we are sending to our Local Franchising Authorities ("LFAs"). You may post it on your web site to make sure that everyone has access to the information. Unfortunately, since all of this has occurred around the holidays, not everyone has received a copy of the letter and this appears to be the most efficient way to reach your members.
Several LFAs and representatives of NATOA have expressed the desire for additional time to evaluate the legal issues and options presented in AT&T Broadband's earlier communication regarding the payment of franchise fees on our cable modem service revenue in the Ninth Circuit based on the final and non-appealable decision in the Portland litigation. In the spirit of cooperation, AT&T has agreed to meet with you and other representatives of NATOA, as soon as possible in January 2001. To facilitate these discussions, AT&T is hereby notifying NATOA that it is extending the time frame for all LFAs in the Ninth Circuit to respond to our request for a waiver and/or future offset of franchise fees on cable modem service revenue until February 15th, 2000. However, AT&T Broadband would like to emphasize its position that federal law does not allow the voluntary payment of franchise fees in excess of statutory limits, and therefore, there is a critical need to address this issue promptly given the issues raised in AT&T's prior communication.
We look forward to working with you on this issue.
Sincerely,
/s/
Margaret A. Sofio
Vice President Law and Local Affairs