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Minneapolis Loses Cut of Cable 'Net Revs

Minneapolis won't get to take 5% of Time Warner Cable's cable modem revenues after all.

The city was claiming the money as part of the 5% franchise fee it gets on the company's cable service, but a U.S. District Court has ruled the city was not entitled to the fees, pointing to the FCC's 2002 decision that cable modem service is an information service, not a cable service.

Time Warner prevailed in a similar case in Rochester, N.Y., in 2003, according to the company.

“We are pleased with the Court’s ruling, which once again lets local franchise authorities know that the federal government has explicitly excluded revenues on cable modem services from assessment as part of the cable franchise fee calculation,” said Mike Munley, president of Time Warner Cable’s Minneapolis division, in a statement.