Norwood Awards CATV; Service In Year-June 24, 1981

Board of Selectmen Vote Unanimously to Secure $2.5 Million Adams-Russell Franchise After Competitive Race

A $2.5 million system to open up local homes to more than 50 cable television channels is expected to be operating within a year. It was a tough, long-awaited decision after much study with a lucrative 15-year franchise at stake. Annual revenue of $500,000 for the licensed company seemed a conservative potential. The company, along with Continental Cablevision of Massachusetts Inc. in Boston, were given top ranking by the town cable television advisory committee. Adams-Russell Co. Inc. is a 22-year-old company with $45 million annual revenue ranked about 50th out of about 2,000 cable TV system operators nationwide according to Martin P. LoMonaco, representative of the firm. It operates cable systems in Lexington, Maynard, and Hudson and has license applications pending in Westwood and Canton. According to Martin P. LoMonaco, unlike privately held Continental Cablevision of Massachusetts Inc., Adams-Russell Co. Inc. is a public company with stock sold on the American Stock Exchange and therefore more accountable under disclosure regulations. “It will probably go up tomorrow when they get the word we won Norwood,” a happy Martin P. LoMonaco said.

Martin P. LoMonaco said it could take several months to finalize a license, although a provisional one is expected in a month. Time is needed to negotiate for use of utility poles and adjusting of existing wires, he said, and a site of a cable TV receiving tower must be selected. He estimated approximately $2.5 million will be spent to build the Norwood system, including about 100 miles of cable. A local studio will be needed, too, he said. First subscribers could be hooked up five months from now, he said, and all subscribers within eight months. Much depends on how soon the municipal light company can adjust lines on utility poles to make ready for cables, he said. Viewers will pay $15 or less a month for access to more than 50 channels, including one or more for local programming, he said. The system will show “R” rated movies, but no “X,” he said. Martin P. LoMonaco estimated about five years before the company realizes its investment, based on about 50 percent saturation. The vote was 3-2 to reject the six other applicants and 3-2 for Adams-Russell Co. Inc., the sole applicant given second backing as selectmen made nominations. The vote was later made unanimous.

Rejected for proposals not deemed to serve the best interests of the town were Atlanta-based Norwood Metrovision Inc.; Regional Cablevision Inc., Mattapoisett; Sammons Communications of Massachusetts Inc., Belmont; Southern Massachusetts Cablevision of Norwood, based in Bridgeport, Conn.; California-based Times Mirror Cable Television of Norwood; and Continental Cablevision of Massachusetts Inc.. “Adams-Russell Co. Inc. was involved in one of the most competitive struggles I’ve ever seen as a lawyer,” said a jubilant John J. C. Herlihy, the Norwood-Boston attorney who represented the franchise winner. The license race was of high caliber, on a clean-cut level, he said. George M. Ruboy, Norwood lawyer representing Continental Cablevision of Massachusetts Inc., said later he had talked with the principals of the company and would have no comment on the decision. Edward F. McKenna, chairman of the nine-man CATV advisory panel, advised selectmen that the losing applicants and the state CATV commission must be advised of the decision by Tuesday. His committee will now work with the winner to come up with a license, Edward F. McKenna said.

Selectman William J. Plasko first nominated Times Mirror Cable Television of Norwood but then joined Chairman John F. Kinnaly and William F. Butters to make the majority. Selectman Thomas A. Riolo nominated Continental Cablevision of Massachusetts Inc. while Selectman Walter J. Dempsey indicated he favored Adams-Russell Co. Inc. but on a procedural concern voted against the selection. However, both were willing to make the final award a unanimous decision. Walter J. Dempsey suggested the gesture, while Thomas A. Riolo described the top two choices recommended as excellent. “They were that close,” he said. John F. Kinnaly said Adams-Russell Co. Inc. “had a distinct edge” and he had “no qualms” about awarding the license. Adams-Russell Co. Inc. and Continental Cablevision of Massachusetts Inc. compared very close in their proposals on items like capital investment, subscriber rates, budget allotments and staffing, John F. Kinnaly said. But the narrow differences added up, he said. William F. Butters, who had opened nominations with Adams-Russell Co. Inc., said he was pleased to report that no pressure was exerted on him by the committee or applicants. Both Massachusetts-based companies proposed similar features and both appear financially sound, Edward F. McKenna said. Adams-Russell Co. Inc. would invest $2.64 million to see the capital project to completion and Continental Cablevision of Massachusetts Inc. $2.36 million, Edward F. McKenna said, reading the committee report into the official record. The other six had submitted reasonable proposals but none received a majority committee vote, Edward F. McKenna said. “Your performance has certainly been admirable,” John F. Kinnaly said, congratulating Edward F. McKenna and his eight colleagues for their long study and technical research going back over a year without compensation.

Archival Note: This article has been dynamically reconstructed from the original public record print archives of the Patriot Ledger