By Morgan Pilz, Staff Writer
(July 11, 2019) An updated contract with Mediacom was approved by the Ocean Pines Board of Directors last Saturday.
“The approval of the contract will allow us to move forward with month-to-month terms that are currently in place and enable new terms and conditions of the negotiated contract,” board President Doug Parks said.
The document has been reviewed and negotiated by an Ocean Pines workgroup, four directors, and attorneys for both parties.
“The new contract provides the same standard services, but also addresses several important issues, including compliance with federal law regarding the removal of exclusive use of easements and rights of way,” Parks said. “This is not a retail agreement, it’s a right-of-way agreement.
“Back in 1978, when the contract was first created, the federal government allowed the exclusive usage for rights of way,” he continued. “That means if company x, y or z wanted to come in and provide services, they could not use the easements that Mediacom was granted exclusive use of.”
Ocean Pines received 3 percent of cable television gross revenues under the old agreement. With the new contract, the association will collect 1.6 percent of all Mediacom services provided to the community, including phone, internet and cable television.
“The benefit there, as the medium evolves and the way people consume information changes overtime, there will be much more demand for internet services,” Parks said. “The terms and conditions in this new contract somewhat protect us as the internet usage grows, we can get a part of that.”
Parks said he expects the association to net roughly same amount, about $150,000 to $160,000, under the new contract.