In addition, we would like to emphasize the importance of I-Net services throughout New York City, and the potential impacts your proposal could have on them. It is our understanding that your draft order claims there will be no impact on I-Net services, and that the FCC is not preventing localities from including I-Net services in their franchise agreements. However, if the cost of the I­ N et is now considered to be a part of the five percent franchise fee, then localities will be forced to decide which is more important - the I-Net services or the revenue from the fee. This once again puts local municipalities in a lose-lose situation, one that we fear could be detrimental to the I-Net system. We strongly urge you to rethink your proposal and the consequences it could have on cities like New York who rely heavily on I-Net services along with PEG channels. Congress understood the important role PEG programming and I-Net services play in communities, and expressly intended for these services to flourish by being included in franchise agreements separate from the franchise fees. PEG channels act as a platform for local voices to be heard, news to be shared, and local government transparency to be enforced. Congress intended that LFAs have the authority to preserve the diversity of programming PEG provides through their franchise agreements. As it stands right now, your proposal would limit the ability of LFAs to take into account the needs of their local communities, as contemplated by the Communications Act, by undermining PEG channels around the country. We urge the FCC to reject any rule that would undermine the value PEG channels and I-Net services provide to New Yorkers and the rest of the country or harm existing local government authority over franchising agreements. Thank you for taking the time to consider our concerns and for your attention to this issue. Sincerely, ~~-Y>Z-".~ · _.._ ~!l"L. -.- ! Kirsten Gillibrand Charles E. Schumer United States Senator United States Senator