Published on December 23, 2007
TX FRIENDS OF : TIME WARNER CABLE PAC TX FRIENDS OF WHAT IS A “PAC”?: WHAT IS A “PAC”? Employee-funded political action committee Non-partisan, giving is based upon issues Uses funds to support candidates that support cable By making contributions to their campaigns, we become their supporters. Politicians are more likely to listen to supporters than non-supporters WHY SHOULD I CONTRIBUTE?: WHY SHOULD I CONTRIBUTE? Pool resources. Geared at stabilizing the overall business health of our company and consequently the jobs of its employees Our industry is extremely sensitive to government regulation and one issue decided the wrong way could have an enormous impact on all of us Enables our company to fully participate in the political process By joining, you are choosing to help Time Warner Cable have a voice at the state level We all have a stake in this business and in keeping it alive and growing PAC MEMBERSHIP: PAC MEMBERSHIP 3,050 total PAC members 1,415 members in Houston Division 62% employee participation 88% management participation $157,305.22 raised so far in 2006 $271,009.91 pledged for 2006 WHERE DOES MY MONEY GO?: WHERE DOES MY MONEY GO? 100% of funds go to support candidates that support cable Because TWC pays all of the operating costs, every penny contributed goes to support our selected candidates Quarterly spending report sent out to all PAC members – Political Corner TX Friends of Time Warner Cable PAC operates “in the open” IS THIS A BRIBE?: IS THIS A BRIBE? A bribe is something hidden, kept private A bribe is giving something to get something in return All of our contributions are public record We do not give money while legislators are in session We give small amounts ($1,000, $2,500) GOVERNMENT REGULATION: GOVERNMENT REGULATION Recent legislation – SB-5 Telecom issues Competition with satellite Rate Issues Customer Service Standards Tax Reform SB-5: SB-5 Telecom legislation passed in special session ’05 that shifts the existing cable franchise system from a municipal system to a state-wide franchise system Allows any cable operator to apply for a state franchise which enables them to serve any part of any community. Requires incumbent cable providers to operate under existing municipal franchise agreements until 2008 or until the current franchise agreement expires, whichever is later Clearly gives new providers entering the market an advantage over existing cable operators because the new entrants are not held to the same regulations. Low income areas will not have competition SB-5 (Cont’d.): SB-5 (Cont’d.) Incumbent cable operators have over 350 franchise agreements that expire in 2008 or later, nearly 200 of which expire after 2010 and another 100 after 2015 SBC, Verizon, Grande will be offering video services in our service area Current cable operators (TWC) will be at a disadvantage due to honoring current municipal franchise commitments Limit ability to respond to price competition Cost of regulation: Maintain, Upgrade, Expansion SBC/AT&T: SBC/AT&T SBC has one of the largest and well-funded PACs in Texas SBC and AT&T have merged and have already begun offering phone, video and data services in our Time Warner areas. Planning to service only “high value” customers – want to compete only in wealthy neighborhoods Exclusive marketing agreements WHAT’S NEXT?: WHAT’S NEXT? January, 2007 regular session It is crucial that we attain solid and accurate representation of cable and telecommunications issues in the state legislature. Want to level the playing field on video franchise laws by amending SB-5 to require equal treatment of video service providers Universal Service Fund Keep friends, make new friends. HOW DOES IT IMPACT ME?: HOW DOES IT IMPACT ME? Government regulations impact all aspects of what we do Sales – Competitors may have advantage over you. Regulations may affect how you do your job Installation/Tech Support/Customer Service – Customer Service Standards HOW CAN I PARTICIPATE?: HOW CAN I PARTICIPATE? Payroll deductions One-time contribution by check – good for one year membership Fill out the membership form and return to your division Public Affairs office Participation is completely voluntary WHAT ELSE CAN I DO?: WHAT ELSE CAN I DO? Get politically involved Campaigns always need volunteers Get educated about cable issues Register to vote VOTE!