Richmond, Virginia has launched a lawsuit against Cavalier Telephone for providing IPTV service without a franchise agreement. Cavalier Telephone has been offering their new IPTV service since June and it goes without saying that city is not happy that Cavalier has been avoiding the taxes and associated fees.

According to an article in the Richmond Times Dispatch, the mayor of Richmond informed Cavalier on Oct. 27th that they must obtain a franchise agreement to offer television service. If this is accurate, my question is why did Richmond wait five months before communicating or putting the heat on Cavalier? Clearly, they were aware prior to June that Cavalier was launching a television service.

Richmond officials are in talks with Cavalier but that Cavalier must halt their service until an agreement is reached. The city is also asking that Cavalier retro-pays for all IPTV services offered dating back to the launch.