Chicago Cable Television Provider RCN

Withholds $215,000 Fee

From the Chicago Tribune

Published January 14, 2004

By Robert Manor, Staff Reporter

Staff reportert Gary Washburn contributed to this report

For the second time in as many years, cable television provider RCN Corp. has failed to pay fees it owes to Chicago's local cable access network.

RCN was to have paid $215,000 to CAN TV on Jan. 7. In a similar situation two years ago, RCN failed to pay the network $645,000 on time, though it made good on what it owed after the city threatened to fine the company.

City officials were not pleased Tuesday.

"I would point out that, again, our favorite has reneged on their obligation," said Ald. Bernard Stone (50th) during a City Council committee meeting. "We are again in a problem with RCN."

Under its franchise agreement with the city, RCN must pay a fee to CAN TV.

CAN TV provides city residents with air time to speak out on local issues. For example, not-for-profit organizations can talk about their work in health care or deterring domestic violence. CAN TV broadcasts on channels 19, 21, 27, 36 and 42.

Marc Miller, local market manager for RCN, said the company had not paid CAN TV because it is seeking modifications in its agreement with the city, including changes in the way its local access fees are determined.

RCN, which serves a swath of the city running along the lake from downtown to Rogers Park, also wants to get out of an agreement calling for it to offer cable service in much of the city, according to company and Chicago officials.

"We are working with the city and CAN TV" on the changes, Miller said.

City officials are contemplating their next move.

" The law department is reviewing it," said Connie Buscemi, spokeswoman for the city Department of Consumer Services, which oversees cable operations.

Buscemi said RCN has given the city no satisfactory answer for not paying.

Barbara Popovic, executive director of CAN TV, said the organization has a budget of $2.4 million, and that RCN's contribution is essential.

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