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Constitutional Law Keyed to Choper
Los Angeles v. Preferred Communications, Inc.
Citation:
476 U.S. 488 (1986)Facts
Preferred Communications, Inc. sought to provide cable television service in the south central area of Los Angeles. It approached Pacific Telephone and Telegraph (PT&T) and the Department of Water and Power (DWP) for permission to lease space on utility poles to install its cable system. Both utilities informed Preferred that they would not lease space unless the company first obtained a cable television franchise from the City. When Preferred approached the City for a franchise, it was refused because Preferred had not participated in an auction process designed to award a single franchise in the area. The City’s process allowed it to select the “best” applicant based on various criteria. Preferred alleged that there was sufficient excess physical capacity on utility poles and economic demand in the area to accommodate more than one cable provider. The company claimed that the City’s restriction to a single franchise violated its First Amendment rights. The City defended its policy by citing concerns about physical scarcity of space, limits of economic demand, and aesthetic and practical disruptions caused by installing multiple cable systems.
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