Broadband Planning Company and Comcast

Hi Joanne,

I'm from FL, but I've never heard of Broadband Planning. You are right to be suspicious of an unknown provider. At minimum, I would insist that the Board to provide you with 10 HOA references for Broadband Planning that you can then contact to ascertain their experiences to date with the company.

Good luck!

Best, Jim

Thank you Jim, good suggestion. I will do that.

Never go into something that long with technology! We did a 2 year study/proposal for getting High Speed Internet, Cell, Voice and data here and started at $525k. After the end of 18 months we had it down to $125k and it still got voted down. Technology changes so fast that you never want a long term contract. If they want your business let them put in the stuff for no charge to you!

What is stopping you from reviewing their record on the BBB website? Seems to me that is the first place you should look. I would do a google search in addition. Although do not always believe what I see there. However, some of those sites offer customer reviews to review.

10 year contract is way too long of a time. This is some serious contract review and not what comes out of the salesman's mouth. Get a copy of the actual proposal/contract and review it closely. It's time to go over word by word and highlight questions. Contracts work BOTH ways. No reason the HOA can't put in their own requirements.

It's also to enter into a long term contact (if desired) directly with the provider and not a third party.

Agree! And yes, long term contract AND workong directly with Comcast if at all.

Again,

You are working through a third party vs. directly with comcast.

I'd ask the MC what type of relationship they have with the company they are recommending, what finders fee (if any) they might receive, etc. and why the MC believes the Association should deal with the third party vs. dealing directly with the provider.

Tim, our MC will be receiving an "administrative fee" directly from Broadband Planning. And I do not see where on the documents the amount is disclosed. both our BOD president and I take issue with this, for lots of reasons I wont get into now. Yes, the third party is a biggie, and the length of the marketing rights agreement, and the relationships, too. The language seems to describe Broadband as "representing the HOA" and also describes that we, the HOA will not pay our MC but Broadband Planning, (the 3rd party) is paying them, but it comes from the money they take from the HOA "proceeds". It looks like the three orgs have this sweet little deal going. My list of questions keeps growing!

Joanne,

From your response and reading the website, I believe you are correct in your understanding.

Basically -

1) The Association enters into a contract with Company A to act as their agent to negotiate cable/internet contracts.
Company A attempts to do this with multiple Associations so they might more easily negotiate a more favorable contract from the cable provider.

2) In an attempt to obtain more Associations, company A provides a fee to MC/PM who can have Associations enter into the contract (a finders fee/admin fee so to speak, payable over the life of the contract).

3) Company A negotiates access rights with cable/internet provider and receives a stipend for those rights.

4) Company A then takes a percentage from that stipend and forwards the rest to the Association.

5) Part of the agreement is that the Association will provide marketing for the cable/internet provider. This can be a requirement to place links on the Association website, advertise in the Association newsletter and even to providing names and numbers to the provider (see this article and scroll to page 3.

Here are some articles on Right of Entry Agreements:

MDU Right of Entry Agreement - Bulk Cable Agreement - Door Fee - Revenue Share from an attorneys web site (note: the attorney happens to be part of the team for Company A). Of interesting note in the article [emphasis added]:

Although the FCC has prohibited the enforcement of exclusive ROE agreements at MDU properties (see Report and Order and Further Notice of Proposed Rulemaking, MB Docket No. 07-51 (rel. Nov. 13, 2007, the “Exclusivity Order”)), it is important to note that:

(a) the FCC Order applies only to cable operators, that is, video service providers, including both traditional cable companies and telephone companies that have a franchise agreement with the State or local franchising authority allowing the provider to utilize public rights of way. The Order does not apply to satellite providers, such as DIRECTV and Dish Network, or their PCO distributors. Satellite providers are exempt from the ban and may still negotiate exclusive video service agreements for MDU properties, although this issue too remains on the FCC docket;

MARCO ISLAND CABLE, INC v. COMCAST OF THE SOUTH, INC. the 2006 case that may have had an impact on the 2008 FCC guideline about exclusive right agreements.

Bulk Cable Television and Communication Service Contracts For Condominium and Homeowners' Associations from the Orlando Sentinel

It should be noted that in my search I found a few companies that do the same as Company A. Some have been in business since 1998.