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Michael Friedman, on behalf of Telecommunications Management, explained that <br />in order to find a breach there must be notice and opportunity to cure. If there was a <br />single subscriber who did not receive service and notice is given to AT&T and the <br />subscriber continues not to get service, then there would be a breach. So one is not <br />talking about a single instance, but a repeated pattern. He said the amount of damages <br />the cable service pays is one thing, but the greater issue is the fact that it was found in <br />breach of the franchise. He referred to federal law on patterns of practice. It is not the <br />amount of the liquidated damages. If you talk about customer service standards in <br />section 8 of the ordinance, such as answering the phone, a breach must be measured over <br />a three-month period of time. If the company does not meet the standard of 90-95%, then <br />notice is given and an opportunity to cure. It is not something that is instantaneous. <br />Because of that, the impact of considering different violations is somewhat minimized. <br />The standards for the most part are consistent with the standards that have been <br />established by the Federal Communications Commission. The City can establish more <br />stringent standards if it wants, but the cable company is allowed to raise its rates in order <br />to implement those more stringent standards. There is a fine line to be walked to take <br />into account what is best from the consumers' interest and what is the impact on the <br />subscriber rates. <br /> <br /> Ms. Dennis felt it was difficult for a consumer to accumulate evidence of a breach <br />over time, provide the evidence to the City and have the City intervene, etc. <br /> <br /> Mr. Friedman said there are different types of failures. He referred to various <br />sections on pages 21-22 which cited various instances such as a system outage that must <br />be responded to within two hours that affects one or more channels that affect ten percent <br />of the subscribers or more. That does not have to be measured on a quarterly basis. If <br />there are repeated outages and AT&T does not cure the problem, then the company can <br />be found in breach. <br /> <br /> Ms. Dennis referred to page 19 regarding service problems and answering phone <br />only during normal hours with no response due until the next business day. When she <br />has a service problem with analog, it is difficult to find anyone to answer the phone. One <br />night she had a problem. The recording said to hold and she was on hold for two hours. <br />Finally she called the sales number and got assistance there. If they are selling, they <br />ought to be fixing. Most people don't watch television during normal business hours. <br /> <br /> Mr. Friedman said from a practical standpoint, people ought to call the cable <br />company during normal business hours and tell them about the problem. Most cable <br />companies will give the user a credit for the day's service. <br /> <br /> Ms. Dennis referred to another page and said a user is entitled to a credit and that <br />should be part of the tape-recorded message. She believed the credit should be from the <br />time a user begins to experience the difficulty. The response to service difficulty is very <br />good; the company sends a technician to check all possible problems, but in her case <br />nothing was ever found. The company then began to suggest an upgrade to a more costly <br />service or an amplifier, which is another $40 dollars. The company should not be <br /> <br />Pleasanton City Council 27 <br />Minutes <br /> <br />03/20/01 <br /> <br /> <br />