The City of Hays has filed suit against Nex-Tech, LLC; Big River Telephone Company, LLC; and Eagle Communications, Inc., related to the imposition of franchise fees for services provided to customers in the city.
The suit, which was filed July 9 in Ellis County, seeks a court order requiring Big River to enter into a franchise agreement with the city intended to collect city franchise fees for Big River’s service to Eagle Communications for Eagle Communications’ IP-delivered telephone service. Cities with franchising authority currently collect franchise fees on traditional switched telephone service delivered through traditional methods, but not IP-based service, which is delivered entirely via internet.
The suit also asks the court to make a determination as to whether or not Eagle Communications, with or without services from Big River, should be required to enter into a franchise agreement to provide its internet-based telephone service. And, the suit seeks to establish that the city can continue to require Nex-Tech to enter into a franchise agreement to provide its service in Hays based on the technology Nex-Tech utilities.
(Read more: Hays Post)