Lowell negotiates new cable franchise agreement with Comcast amid declining video subscriptions

The Lowell City Council meeting on April 1, 2025, focused on the renewal of the city's franchise agreement with Comcast of Southern New England, which expired in 2023. The meeting served as a public hearing, a legal requirement for the renewal process, and included input from city representatives and members of the public.

Attorney Bill August, representing the city in negotiations, outlined the proposed terms of the new agreement. Key points include a five-year contract length and a franchise fee set at 5% of Comcast's gross revenue from video services within Lowell. It was noted that only revenue from video services contributes to this fee, as per Massachusetts law, excluding internet and telephony revenues.

Mayor Fernandez emphasized that the agreement grants Comcast a nonexclusive license to operate in Lowell, allowing for potential competition from other providers, although infrastructure issues have historically limited such competition. The contract also includes provisions for public educational and government access, a senior discount formalized in a side letter, and a 50-cent per subscriber fee paid to the city.

One significant aspect of the agreement is that Lowell will continue to have complimentary use of the fiber Institutional Network (INET), which connects city buildings. This provision is unique, as other communities pay for similar services. However, it was cautioned that this benefit may not be available in future renewals.

Adam McHugh, executive director of Lowell Telecommunications Corporation, expressed support for the agreement, noting that the fees collected help fund community media services. However, concerns were raised about declining revenue from the franchise agreement due to the trend of cord-cutting, with more residents opting for internet-only services, which impacts the overall fees collected.

Comcast reaffirmed its commitment to maintaining a retail presence in Lowell, specifically at the Target Plaza on Plains Street. The council acknowledged Comcast's reliability and financial stability. It was clarified that only the city manager has the authority to execute the contract, meaning no further action is required from the council at this time.

The discussions highlighted the ongoing challenges and adaptations in the cable service landscape, as well as the city's efforts to secure beneficial terms for its residents.