cityofboston.gov - Official Web Site of the City of Boston - Thomas M. Menino, Mayor

Transfer Hearing

RCN Open Video System (OVS)
10:00 a.m., Thursday, December 16, 2010
Winter Chambers, 26 Court St., Boston

The Issuing Authority for cable franchises, Mayor Thomas M. Menino, seeks to obtain public comment on the Transfer of the Boston OVS License from RCN BecoCom, Inc., from Yankee Cable Acquisition, a subsidiary of ABRY Partners, LLC, Boston, Mass., to itself, and three non-controlling minority owners: Spectrum Equity Investors, New York Life Capital Partners and HarbourVest Partners.  Comments from the public will be taken following presentations on the proposed transaction at a hearing to be held at 10:00 a.m. , December 16, 2010  in the Winter Chambers School Committee Room, 26 Court St., Boston, Massachusetts.

Yankee Cable Acquisition, (doing business as RCN BecoCom, Inc.,) holds an Open Video System Certificate from the Federal Communications Commission (“FCC”) and License Agreement from the City of Boston to provide video programming in the City of Boston.  This agreement with the City of Boston was originally granted in September of 2002 and was renewed on July 16, 2010.  The Agreement expires July 15, 2020. 

On November 5, 2010, Boston and other communities were noticed by FCC Form 394 that Yankee Cable Acquisition sought to transfer ownership and control to Yankee Cable Acquisition and three minority investments partners with non-controlling ownership interests.

This public hearing is scheduled to provide an opportunity for public comments on the proposed transfer.  Information regarding the OVS license transfer filing and the transfer process is available at the City Clerk’s Office, Boston City Hall Room 601; the Boston Cable Office, 43 Hawkins Street; and posted on this page.

Public testimony on cable television services is strongly encouraged.

Written comments can be addressed to Mike Lynch, Mayor's Cable Office, 43 Hawkins Street, Boston MA 02114 or, e-mailed to  cable@cityofboston.gov   For further inquiry or hearing information, please call the Mayor's Cable Office at (617) 635-3112.

RCN BecoCom, Inc., holds an Open Video System Certificate and Agreement to provide video programming in the City of Boston, entered into on September 30, 2002 with the approval of the Mayor of Boston and certification of the Federal Communications Commission (FCC).

RCN’s Open Video System Agreement with Boston is similar to a cable franchise.  RCN serves about 16,000 customers in 8 neighborhoods.  RCN also operates systems in 18 nearby towns, as well as New York City, Chicago, Washington D.C., and Pennsylvania communities. 

The Issuing Authority for cable franchises, Mayor Thomas M. Menino, recently approved the ten year renewal of the RCN OVS through July 16, 2020, accepting the findings of a Renewal and Transfer Report (attached) which recommended approving the proposed renewal Agreement with RCN-BecoCom, Inc. and approving the subsequent transfer of that renewed Agreement to Yankee Cable Acquisition, LLC.

On March 24, 2010, Boston and other communities were noticed by FCC Form 394 that RCN-BecoCom, Inc., a subsidiary of RCN Corporation, sought to transfer ownership and control to ABRY Partners VI, L.P. subsidiary, Yankee Cable Acquisition, LLC.

This Renewal OVS will be the Agreement transferred to Yankee Cable.  Since that filing, the City:

1. Submitted inquiries relative to financial, managerial and operational issues;

2. Reviewed financial data relative to the transaction; 

3. Conducted  a public hearing, including testimony from principals of RCN and ABRY on May 24, 2010; 

4. Negotiated a proposed Renewal of the OVS Agreement; and, 

5. Reviewed RCN’s prior performance as an OVS provider.

The impact on Boston of a cable system’s sale and transfer is described as “stepping into the shoes” of the current operator.  Though RCN operates in Boston as an OVS (Open Video System) we are following cable procedures for transfer pursuant to our agreement with RCN. 

The City had 120 days to approve or deny the transfer.  The Report on the Renewal and Transfer of the RCN-BecoCom Inc. Open Video System (OVS) Operating Agreement Between the City of Boston and ABRY Partners VI, L.P., Yankee Cable Acquisition, LLC is available in pdf format for review.

The Request for Renewal of the OVS Agreement for 10 years and the Application for Transfer of Ownership of the Boston RCN system met all of the required conditions and, most importantly, serving the best interest of our City and its residents.

The criteria for approval, or denial, of a transfer by any community are fourfold, based on consideration of the new operator’s:  managerial experience; technical experience; financial capability; and, legal ability to operate the system.  ABRY Partners and Yankee Cable have reported no intention to change management, which eliminates the greater obstacle.

The impact of a transfer on programming delivery and local access television is minimal.  The license being transferred is held intact and the scope of determination is defined in state law.  The renewal will document expanded benefits to the City by RCN/Yankee Cable.  RCN’s Open Video System Agreement was signed in 2002 and expires January 31, 2011.  We are recommending renewing the negotiated Agreement with RCN-BecoCom, Inc. as of July 16, 2010 for a term of 10 years. 

The concessions, benefits, deadlines and services agreed to by RCN-BecoCom in the 2002 OVS agreement with the City have been expanded in subsequent extension agreements and have been agreed to by RCN.  It will be this new renewal Agreement that and will be accepted by ABRY Partners in this transfer.

Specifically, in Boston, RCN:

• Responded favorably to the Mayor’s call for a more affordable cable rate, recently launching a $10.00/mo Basic Rate for Seniors and an overall Basic Rate of $17.50;

• Provided a ‘Free First Box’ program for Boston households as part of the transition to all-digital transmission last year;

• Partnered with the Mayor’s Wi-Fi initiative, offered backhaul support for Open Air Boston, and supported the City’s BTOP applications;

• Provided fiber to the City’s network for about 12 city facilities;

• Built video return for the Boston City Council;

• Offered Ch. 82 as a fifth access programming channel for government use (City Council, boards and commissions); and,

• Expanded in Dorchester, good news for city residents looking for competition and choice.

ABRY Partners/Yankee Cable publicly states acceptance to these commitments and the commitments are incorporated into the Renewal Agreement.

More Information

Questions regarding RCN, Yankee and the renewal and transfer process can be addressed to The Mayor's Cable Office.