I4 9- 4m special feature the sunda~y daily by pat atkills iber 41 Night Editor: Robert Kraftowitz Sunday, January 31, 1971 'able television challenges 4' the American TO THE SUBSCRIBING student, it will mean a $15 installation fee and a $5 monthly subscription charge. To the city of Ann Arbor, it co.uld mean at least an annual $100,000 with- in three years. Cable television in Ann Arbor is a chance, as well, to break with the normal city cable television policy which ignores possibilities for social benefits. Ann Arbor has uniquely linked its cable television revenues with what some consider its gravest public need-public housing. Simply, cable television consists of a large community antenna with receptivity capabili- ties much beyond the antenna of the individ- ual homeowner. Co-axial cable is strung on poles or laid underground from the community antenna to the homeowners or apartment dwellers who subscribe to the service. "Cable television could fall on its face or it could have as much an impact as the railroads did in opening up the West," says Ann. Arbor Councilman Bob Faber (D-2nd Ward). "I don't know how it's going to work here. The poten- tial extends out far, much beyond looking at the wagon trains going west." What cable television (or CATV, short for community antenna television) achieves in Ann Arbor depends greatly on the response of residents and on the functioning of a newly- appointed Ann Arbor Cable Television Com- mission. Last July, with city council's passage of a cable television ordinance, the commission was authorized, its primary task to act as watch- dog over cable television in Ann Arbor. Just two weeks ago the commission members were appointed. Within six months, if cable construction goes as expected, the commission will oversee the opening section of Ann Arbor's cable tele- vision system. "THE POSSIBILITIES are staggering for Ann Arbor with the University, the expertise available locally, the dedicated people, and new technologies," says Faber, who headed the city council's committee on CATV. "Look, for example, a two-way system of communication is technically possible right now, realistically and practically. Ann Arbor Model Cities has trouble getting everyone to meetings. It could be possible to have every member at home in simultaneous contact for discussions," he explains. "Or you could con- duct public hearings or hold conference calls." Cable television appeals to Faber, and other community leaders and educators, because of the localism in programming it can bring to television. National TV networks and metro- politan newspapers have forced program space for diverse community group dialogue to a negligible level at a time when such communi- cation is important to maintaining or re- acquiring a sense of community." "People are concerned with those who have no voice in the community, and this could give them that voice," Faber states. In line with his concern for the social benefits of CATV, Faber suggests the possi- bility of local programming by black theater groups, high school educators, or SGC election campaigners. "The committee will instruct the commission to give high priority to low in- come and minority groups," Faber reports. "I would like to see training programs set up for, say young blacks-some type of intern- ship run at the company's expense. That type of program is already a certainty for the school system," Faber says. Other groups will benefit from the policies set down by the ordinance. The legislation re- quires free cable television installation to city hall, fire stations, all schools, the public li- brary, one to each junior or community college, and four to the University. THE SCOPE OF Ann Arbor's cable television encompasses more than a channel of live local programming, however. The Michigan Communications Group Inc. (MCG)-presently leasing Ann Arbor's CATV rights-intends to install co-axial cable for a twenty channel capacity. Under Federal Commission regula- tions, the CATV franchise must carry all of the channels currently available to the com- munity. In Ann Arbor 12 channels can be picked up, which leaves eight to be parcelled out to the city and the franchise company. According to the CATV ordinance, designed chiefly by Faber and his committee members - Councilmen Kazarindff, E d w a r d s and Kirscht, four channels are for the city's use and four are left to the company. "The city's four channels will be used as determined by the commission," Faber says. "However, the ordinance already allows one for use by the public schools with the CATV company giving them facilities and equip- ment. Another will probably be allocated to the University, and a th rd will be for use by city hall to broadcast council meetings and public hearings." The fourth will be for use free of charge by citizen groups and will be the place for most local programming. "The committee will instruct the commission to give high priority to low income and minority groups," Faber adds. "The CATV company plans a diverse usage for its four channels as well. We'll have a time and weather channel," says Bob Shaw, an of- ficial of the MCG. "It's a popular channel in CATV systems as a rule. Then we'll have a camera on a UPI tickertape that will run while the exchange is open. A promoter has ap- proached us with a program he's developing to cut into the tickertape every 15 minutes with reports directly from the exchange. "Our other channels will have kid's shows, sports, and some of the world's worst movies, the ones even Detroit turned down like the first 1929 talkies. We'll start working live pro- gramming in as we get equipment and facili- Mies," Shaw adds. wasteland Local programming will not become a real- ity without hard work and Shaw realizes the practical difficulties involved. "It's easier to form an opinion on the subject without jump- ing into the soup," Shaw says. "Once you're in, you find it's thicker than you thought. "People have become spoiled in the last twenty years by what the networks put out. Even with a bad show, the production is ex- cellent. A program put on by amateurs is going to look like a program put on by amateurs," Shaw says. In more direct language Shaw explains, "A few years ago a couple of guys in California started writing that cities should have all the channels under their control. That's OK with us, don't get me wrong. We just think we'd be more liberal. I think we'd want lots of groups on the air to fill up the programming. And I think since we've been in the business longer, we'd have smoother production." THE CITY MOVED into the CATV picture four years ago, when several companies first approached it and expressed interest in opening a franchise. The companies dropped by the wayside and the Ann Arbor CATV com- mittee, after a year's serious study, recom- mended last June that a 15-year franchise be offered to MCG. "CATV systems are in business to send out applications," says Shaw. "Ann Arbor is not a classical CATV area, reception's good, there are no mountains, and a diversity of stations 'V MCG, under the regulation, must be will- ing to accept responsibility for all damages which Ann Arbor might be legally required to pay as a result of granting the franchise, and to produce evidence of insurance to cover re- moval of the system in event of failure. "One of the important basic facts, or rather benefits, is the need for some degree of cor- porate responsibility," Faber asserts. "I don't believe you're going to get that by trying to change attitudes, but you can change it by changing procedures. That's what we've tried to do by spelling out responsibility." SUCH A UNIQUE project as cable TV has nat- urally had its portion of dissent. Public housing is not a top priority to everyone. Nor are strict restrictions on businesses considered fair by some. Some of the objections to the ordinance were a result of this funding to public housing. Some councilmen opposed an amendment of the ordinance placing restrictions on paid po- litical announcements. "Some conservative members were opposed totally," Faber adds. "They felt that we should treat CATV as any other business. Our feeling is that they're using public rights of way and are a monopoly, and should be treated more as a public utility." Another problem involves the cable casting commission. Although the commission gets first crack at the revenues the city receives from CATV, it expects to run into funding problems. Full operating capacity for the cable com- pany is two years away which leaves the com- mission with a less than adequate funding bal- ance. "We were just appointed a week or so ago," one member explains, "and we haven't gotten off the ground at all: We won't have too much work to do at first, because of the problem of funding. It's one of the principle problems we'll have to face immediately. I imagine that will be our first consideration." Operating funds for the commission will come from the cable casting revenues received by the city. Initially that amounts to a $2,500 franchise fee and $200 a month until trans- mission begins. When transmission begins, MCG will pay the city an annual franchise fee of $4,800 or an amount equal to five per cent of the first $500,000 gross revenue, 10 per cent of, the next $250,000, and 15 per cent of the gross revenues in excess of $750,000, which- ever is greater. Ironically the cable casting company is having its own share of funding problems. "Unfortunately the financial world hasn't got- ten as enthused as I about CATV in Ann Ar- bor," Shaw laments. "It's partly because of the nature of the area and the ordinance. There's been too many fiascos in Ann Arbor, too many places that went broke. "Ann Arbor is not a financial area," Shaw continues. "To get the $4 million we need, we have to go to financial centers and that means out of the state. Detroit's not a financial center either. It becomes very difficult to explain the program to someone in Los Angeles or New York, when Ann Arbor is just a dot on the map." BEYOND THAT Ann Arbor dot of cable tele- vision may lie the promised land of the communications media - or the vast tele- vision wasteland only multiplied by 10 chan- nels or 20 or whatever number technology makes feasible. r, ti 4 are available, so the other groups just lost interest." Before the committee selected a company, it was studying the problems in drafting a cable television ordinance. With the goal of social benefits in mind, the committee developed an ordinance estab- lishing a five-man cable casting commission with authority to regulate rates possibly on a sliding scale of charges according to sub- scriber's income; to license public broadcast- ing for the citizen channel; to audit the CATV company and to investigate, through hear- ings, charges of censorship, poor service or improper rate assessment. The ordinance also insures corporate responsibility and es- tablishes two needed trust funds for public broadcasting and public housing. Revenues received from MCG in excess of the cost for running the commission will be directed into the two trust funds. Five per cent of the excess will go into the public broadcasting fund, to be regulated and man- aged by the commission. Citizen groups could apply for m o n e y to purchase broadcasting equipment. 95 per cent will be directed to the trust fund for use by the Public Housing Commis- sion. And Faber acknowledges the unusual nature of a cable television ordinance which gives priority to public housing. "We don't like the idea of freezing in the funds to such a specific project," Faber ex-