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Comcast Under Investigation For Gifts to Baltimore City Council Members

October 5, 2004

Federal investigators have subpoenaed documents relating to gifts that Comcast Cablevision gave to members of Baltimores City Council.

The inquiry comes in the midst of a national campaign by the IBEW, CWA and citizens groups to review Comcasts franchise agreements with local governments. The parties contend that, in many areas, those agreements favor Comcast, while depriving municipalities of adequate fees or services.

Next month, Baltimore will hold public hearings to review Comcasts franchise agreement with the city to provide cable TV to residents.

Comcasts franchise with Baltimore City began in 2001. Comcast pays a franchise fee of $4 million each year for services provided. The tentative franchise renewal would provide for 12 more years of service at the same rate, five percent of gross revenues. Customers would pay six dollars more each year for service.

According to an article in the Baltimore Sun, U.S. Attorney Thomas M. DiBiagio requested documents from Comcast six months ago. The investigation is reported to center on sports tickets given by the cable giant to council members. Comcast admits to offering tickets mostly to Baltimore Oriole games to all council members.

Baltimore City Council member Kenneth N. Harris Sr. is employed byComcast as director of business services.

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