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The language of Wometco's franchise agreements does reflect
various specific requirements for surety bonds, franchise fees,
and insurance coverage. Specific language, however, regarding
rebuilds is conspicuously absent from the franchise agreements.
The only language in Wometco's franchise agreements expressly
referencing channel capacity, the key factor triggering rebuilds,
is the language that requires maintenance of a minimum channel
capacity.
Technology growth in the cable television industry has been
particularly rapid. As of the time of trial, utilizing new
digital video compression and fiber optic cable, the latest
technology would enable cable television companies to rebuild
their systems to a capacity of 500 channels and to provide high
speed Internet access. To maintain, during each year, completely
state-of-the-art systems, cable television companies would have
had to rebuild their systems every few years.2 To the contrary,
with regard to the six cable television systems in issue, Wometco
2 The schedule below reflects the changing cable television
technology available throughout the years with regard to channel
capacity:
Maximum
Year Channel Capacity
1967 23
1979 40
1981 54
1982 60
1984 80
1993 115
1995 136
1999 500
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Last modified: May 25, 2011