§ 2. Grant.

(a)

There is hereby granted to Telephone Company the right, privilege and franchise to construct, maintain, extend, and operate its facilities, in, through and along the right-of-way for the purpose of supplying telecommunication service to the City and the inhabitants thereof for the full term of this franchise subject to the terms and conditions herein set forth. Nothing in this franchise is intended to preclude the City from seeking, or authorize the City to seek, a franchise from any subsidiary, affiliate, or third party providing telecommunications services.

(b)

This franchise does not provide the Telephone Company the right to provide "Cable Service" to City and inhabitants thereof. For purposes of this ordinance, "Cable Service" is defined as the one-way transmission to subscribers of video programming or other programming services, and subscriber interaction, if any, which is required for the selection of such video programming or other programming service; but "Cable Service" does not include point to point, point to multi-point, and switched video services that Telephone Company has historically offered or other similar services that Telephone Company may in the future offer. Nothing in this franchise is intended to preclude the City from seeking, or authorize the City to seek, a franchise from any subsidiary, affiliate, or third party providing "Cable Services." Telephone Company and City agree that nothing in this franchise is intended to authorize the City to seek from Telephone Company nor to require Telephone Company to obtain a franchise to offer "Open Video Systems" as that term is used in section 653 of the Telecommunications Act of 1996 (codified at 47 U.S.C. 573). Telephone Company and City further agree, however, that this ordinance does not authorize Telephone Company to offer "Open Video Systems" without paying the fee on the gross revenues of the system operator for the provision of cable service in lieu of a franchise fee, pursuant to and in the manner described in 47 U.S.C. 573(c)(2)(b) and without complying with FCC regulations promulgated pursuant to 47 U.S.C. 573.

(c)

Upon written request from Telephone Company, the City agrees to begin negotiations in good faith with Telephone Company within thirty (30) days to provide Telephone Company a franchise to provide "Cable Service" to the City and inhabitants thereof on terms no more burdensome than the franchise(s) granted to other providers of "Cable Service" with the City.

(d)

The grant of this franchise shall be subject to the provisions of Ordinance No. 44-845, to the extent allowed by law and to the extent not inconsistent with the other provisions of this franchise. Nothing in this subsection shall be deemed to preclude Telephone Company from objecting to the provisions of said ordinance or pursuing other rights and remedies that might exist by law.