Franchise renewal to increase Oahu access channels

The Hawaii Department of Commerce and Consumer Affairs announced on Jan. 15 that the state has renewed its contract with Time Warner Entertainment Co. to provide cable television services to Oahu for another 20 years. The DCCA is also requiring Time Warner, the state’s only cable operator, to increase the number of Oahu’s public-access channels available for use from six to 14 channels.

According to the DCCA, the eight new channels include a statewide digital channel for general programming, a digital channel with connection from Honolulu Hale, another with direct connection from the state Capitol, and a statewide channel for use by the University of Hawaii and Department of Education.

Under the deal with the state’s Cable Television Division, Oceanic Time Warner Cable will continue to pay a franchise fee to the state for its use of public property to offer cable services. The fee is 3 percent of Oceanic’s revenues from cable operations annually, or $6.24 million in 2009, when Oceanic reported revenue of $208 million from cable operations. Federal law requires cable operators to subsidize public-access TV through state-authorized cable franchise fees paid by cable subscribers.

DCCA withholds millions in Olelo funding

On Oahu, six channels are managed and operated by the nonprofit Olelo Community Media. Olelo President Kealii Lopez told Pacific Business News she is still trying to get a handle on what the agreement will mean for Olelo, which had been seeking additional funding through Oceanic.

On the day the renewal was announced, Lopez said in a statement that the DCCA is continuing to hold back from Olelo millions of dollars that Oceanic Time Warner pays the state to operate the community television system and that these funding cuts by DCCA will be devastating. Olelo cut staffing by 10 percent last year and reduced hours at its six neighborhood media centers, she said.

Lopez said the department's decisions would force more cuts in center hours and services, such as video production. She said funds are available to head off additional cuts, but the agency refuses to budge.