Cable Fees in Michigan & What’s at Stake

As we continue to move forward with efforts to help legislation keep up with technology, we've developed a top-ten list of frequently asked questions to explain the issues to legislators, elected officials and others who have benefited from these fees.

1. What are cable fees?

Cable fees are payments cable companies make to local municipalities for access to public rights-of-way—poles, underground lines, and other infrastructure needed to deliver their services.

2. How are these fees used?

These fees support much more than public access television. They help fund:

• Roads, parks, and public safety

• Township and city general funds

• Digital literacy and tech training not found in K–12 curricula

3. What is Public Act 480 of 2006?

Also known as the Uniform Video Services Local Franchise Act, PA 480 created a state-level system for cable operations and preserved a mechanism for local communities to collect cable franchise fees.

4. Why is PA 480 a concern today?

Since 2006, digital technology and consumer habits have changed dramatically. As more people shift from cable to streaming (“cutting the cord”), Michigan communities risk losing millions in revenue—even though many streaming services use the same local infrastructure as cable providers.

5. Do Internet Service Providers pay their share?

Not equally. Under the 2002 METRO Act, ISPs pay just 5 cents per foot for infrastructure use. In contrast, other states charge up to $2 per foot. Many cable companies are also ISPs, highlighting the need for updated, equitable legislation.

6. What’s the difference between public and community television?

• Public TV (like PBS) is national and funded by grants and donations.

• Community TV is locally managed and funded mainly by cable fees. These stations provide civic engagement, educational content, and live government meetings—similar to a local C-SPAN. Examples include Bloomfield Community Television (BCTV), WKTV in Wyoming, and Public Media Network in Kalamazoo.

7. What kind of impact does community TV have?

Michigan’s community media centers produce award-winning programs, including police recruitment campaigns and public service content. These outlets are essential for civic participation and local storytelling.

8. What happens if cable fees disappear?

Without them, communities may face

:• Reduced funding for roads, parks, and public safety

• Closure of community media centers

• Loss of local government meeting broadcasts

• Decreased access to community-specific educational programming

9. What’s being done to address this issue?

Groups like the Michigan Community Media Association (MiCMA), Michigan Municipal League (MML), and Michigan Township Association are working to:

• Educate lawmakers

• Oppose harmful legislation, like 2024’s HB4965

• Advocate for policies that reflect modern technology and infrastructure use

10. What’s the solution?

A legislative update to ensure all providers—cable or internet—who use public infrastructure contribute fairly. A unified franchise fee model would protect community funding and ensure sustainable support for essential municipal services.