MCC Iowa, LLC v. City of Iowa City
Opinion
MCC Iowa, LLC, doing business as Mediacom, provides cable and telecommunications services in Iowa City. Mediacom sued the City of Iowa City and ImOn Communications, LLC. The district court
2
granted summary judgment to the City and ImOn. Mediacom appeals. Having jurisdiction under
*372 I.
Mediacom-the only cable provider in the City-has a franchise agreement with the City, as required by federal and state law.
See
In 2015, ImOn-provider of cable and telecommunications in other Iowa cities-publicly stated an intent to provide services, including cable, in the City. The City Council passed three resolutions to facilitate ImOn's construction of a fiber-optic network, including access to public rights-of-way. The next month, ImOn began providing internet to City residents. The next year, it began providing telephone service. ImOn has not provided cable services in the City and has not applied for a cable franchise. It claims to have abandoned plans to provide cable services in the City.
Mediacom believed the City and ImOn were colluding to its disadvantage. In Iowa, if another cable provider applies for a franchise in a municipality, the incumbent provider (here, Mediacom) can apply for a
state
certificate of franchise authority for that municipality.
Iowa Code § 477A.2(6)
. This guarantees the incumbent provider the "same ... terms and conditions" the new provider gets.
Mediacom sued the City, later adding ImOn as a defendant. The lawsuit sought declarations that the resolutions were void and that the City could not permit a potential cable provider to construct a "cable system" without acquiring a cable franchise. Mediacom also alleged contract violations, tortious interference, civil conspiracy, and Equal Protection violations, all depending on whether ImOn could lawfully build a fiber-optic network without a franchise.
Both parties moved for summary judgment. Mediacom also moved for discovery. The district court denied the discovery motion and granted summary judgment to the City and ImOn. The court ruled that "ImOn is not presently required to seek a cable franchise" because it "is not now delivering cable programming."
This court reviews de novo the district court's grant of summary judgment.
Torgerson v. City of Rochester
,
II.
Title VI of the Communications Act requires a franchise only before providing cable service, not before constructing the infrastructure to provide it. "[A] cable operator may not
provide
cable service without a franchise."
No person, firm, company, corporation or association shall construct , install, maintain or operate within any public street in the city, or within any other public property of the city, any equipment or facilities for the distribution of cable service over a cable television system or an open video system to any subscriber unless a franchise authorizing the use of the streets or properties or areas has first been obtained pursuant to the provisions of this chapter, and unless such franchise is in full force and effect.
*373 Iowa City Code § 12-4-6(A) (emphasis added).
The Ordinance must be interpreted consistent with federal law. See Iowa Code § 477A.11(1) ("This chapter is intended to be consistent with [Title VI] ... "); Iowa City Code § 12-4-2 (adopting, almost word-for-word, Title VI's definition of "cable system" as the definition of "cable television system or cable system"). Mediacom's interpretation-requiring a franchise before construction of ImOn's fiber-optic network-is inconsistent with Title VI and an FCC order. 3
Common carriers-as relevant here, companies providing telecommunications (internet and phone) service-are regulated under Title II of the Communications Act.
Title VI grants LFAs franchising authority over cable systems. See § 541(a) . But this authority is limited. As relevant here, Title VI exempts common-carrier facilities regulated under Title II from the definition of "cable system" unless they are used to provide cable services:
[T]he term "cable system" means a facility ... designed to provide cable service ... but such term does not include ... (C) a facility of a common carrier which is subject, in whole or in part, to the provisions of [Title II], except that such facility shall be considered a cable system (other than for purposes of section 541(c)(2) of this title) to the extent such facility is used in the transmission of video programming directly to subscribers ....
§ 522(7) .
The FCC has stated:
We clarify that LFAs' jurisdiction applies only to the provision of cable services over cable systems ... [A]n LFA has no authority to insist on an entity obtaining a separate cable franchise in order to upgrade non-cable facilities. For example, assuming an entity (e.g., a LEC [ 4 ] ) already possesses authority to access the public rights-of-way, an LFA may not require the LEC to obtain a franchise solely for the purpose of upgrading its network.[ ] So long as there is a non-cable purpose associated with the network upgrade, the LEC is not required to obtain a franchise until and unless it proposes to offer cable services. For example, if a LEC deploys fiber optic cable that can be used for cable and non-cable services, this deployment alone does not trigger the obligation to obtain a cable franchise.
*374
In re Implementation of Section 621(a)(1) of the Cable Communications Policy Act of 1984
, 22 F.C.C.R. 5101, 5155 (2007) (hereinafter
FCC order
).
See also
Illinois Bell Tel. Co. v. Village of Itasca
,
Title VI, by itself, says that a common carrier's mixed-use facility is a cable system once the "facility is used" to provide cable services.
See
§ 522(7)(C)
;
MediaOne Grp., Inc. v. County of Henrico
,
III.
Mediacom argues that neither § 522(7)(C) nor the FCC order applies here, where a common carrier constructing a mixed-use, fiber-optic network was
not then
providing telecommunications in the area. But § 522(7)(C) and the FCC order apply to a common carrier's facilities "subject ... to" Title II, regardless whether they have yet been used to provide telecommunications services.
See
§ 522(7)(C)
;
FCC order
at 5155 ("[D]eployment [of mixed-use facilities] alone does not trigger the obligation to obtain a cable franchise."). Mediacom's argument conflicts with the FCC order's stated objective of alleviating the "unreasonable barrier to entry [caused by the previous franchising process] that impedes the achievement of the interrelated federal goals of enhanced cable competition and accelerated broadband deployment."
FCC order
, 22 F.C.C.R. at 5102.
See also
id.
at 5103 ("We believe this competition for delivery of bundled services will benefit consumers by driving down prices and improving the quality of service offerings. We are concerned, however, that [competitors] seeking to enter the video market face unreasonable regulatory obstacles, to the detriment of competition generally and cable subscribers in particular."). This objective implements Title II and Title VI.
See
Mediacom argues that ImOn "proposed" to provide cable service when its CEO "publicly conveyed ImOn's intent to offer cable TV services in Iowa City." But Mediacom conflates "proposes" with "intends."
Compare
"propose,"
Webster's Dictionary
*375
1819 (unabridged 3d ed. 1961) ("to offer for consideration, discussion, acceptance, or adoption"),
with
"intend,"
Webster's Dictionary
1175 (unabridged 3d ed. 1961) ("to have in mind as a design or purpose"). In the FCC order, the term "propose" means "apply for a cable franchise."
See
FCC order
, 22 F.C.C.R. at 5139 ("[I]f an LFA has not made a final decision within the time limits ... the LFA will be deemed to have granted the applicant an interim franchise based on the terms
proposed
in the application." (emphasis added) );
Mediacom also believes that the City, before granting access to public rights-of-way, should be required to ask how entities intend to use them. If the entity intends, as ImOn stated, to use them for cable services, Mediacom argues, the entity must obtain a cable franchise.
Mediacom relies on
San Juan Cable LLC v. Telecommunications Regulatory Board of Puerto Rico
. There, a company had applied for a cable franchise, but before the approval of its application, wanted to construct and operate (mixed-use) facilities in a "trial phase."
[The FCC] did not hold ... that just because a telephone company uses the same cable system for a different activity, it should be exempt from complying with [Title VI]'s franchise requirement where, as in the present case, such company intends to upgrade existing facilities in order to make the provision of cable services viable.
San Juan Cable
does not support Mediacom's investigate-intent requirement. First, the company there had already applied for a franchise and was attempting "to perfect [its] cable system before approval of the franchise."
In the alternative, Mediacom argues that the City granted ImOn a de facto cable franchise that failed to comply with the franchise requirements of Title VI and Iowa law.
See, e.g.
,
But this is not true as a matter of state or federal law. Cities in Iowa have general authority over rights-of-way, subject to state and federal limits.
See
an initial authorization ... issued by a franchising authority, whether such authorization is designated as a franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, which authorizes the construction or operation of a cable system .
As discussed, ImOn's fiber-optic network is not a "cable system," because ImOn has not provided or proposed to provide cable services. Thus, the agreements authorizing ImOn's construction of a fiber-optic network are not a de facto cable franchise.
IV.
In its Equal Protection claim, Mediacom argues it is similarly situated to ImOn. Mediacom cites
Time Warner Cable, Inc. v. Hudson
,
Finally, Mediacom asserts that the district court abused its discretion in denying Mediacom's motion for discovery.
See
Toben v. Bridgestone Retail Ops.,
LLC
,
*******
The judgment is affirmed.
The Honorable Charles R. Wolle, United States District Judge for the Southern District of Iowa.
Because ImOn was a common carrier in Iowa City when it began construction, Mediacom's interpretation is also foreclosed by the Ordinance without reference to federal law. The Ordinance (like Title VI) expressly excludes from its definition of cable systems "a facility of a common carrier which is subject, in whole or in part, to the provision of title II of the [Communications Act], except ... to the extent that such facility is used in the transmission of video programming ...." Iowa City Code § 12-4-2 .
A "LEC"-"local exchange carrier"-is, as relevant here, a common carrier providing telephone service.
See
Reference
- Full Case Name
- MCC IOWA, LLC, Doing Business as Mediacom, Plaintiff-Appellant v. CITY OF IOWA CITY; ImOn Communications, LLC, Formerly Known as JB and SG Communications, LLC, Defendants-Appellees Charter Communications, Inc., Amicus on Behalf of Appellant(s) Iowa League of Cities, Amicus on Behalf of Appellee(s)
- Cited By
- 2 cases
- Status
- Published