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Cable television companies seeking to establish cable
television service in particular communities enter into franchise
agreements with local municipal government entities for the right
to construct, operate, and maintain cable television systems
within the communities. The franchise agreements reflect the
cable television companies’ general obligations and commitments
regarding construction and maintenance of the cable television
systems and the service to be provided to customers.
As of 1985, under such franchise agreements, Wometco
operated cable television systems in 179 communities throughout
the Southeastern United States.
From 1989 through 1991, at a total cost of approximately $22
million, Wometco undertook extensive improvements to six
particular cable television systems that it operated in the
suburbs of Atlanta, Georgia (hereinafter sometimes referred to as
“the six systems”). These improvements involved replacement of
coaxial cable, power supplies, amplifiers, and other electronic
components and an increase in the maximum capacity of the six
systems from either 36 or 54 channels to 62 channels. In the
cable television industry, such improvements are typically
referred to as a “rebuild”.
With regard to Wometco's six cable television systems that
were rebuilt from 1989 through 1991 (hereinafter sometimes
referred to as “the six rebuilds”), three of the systems had been
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Last modified: May 25, 2011