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FOUKE, Ark.—The City of Fouke may soon have a cable television business operating locally.

The City Council agreed Thursday to allow Southwest Arkansas Telephone Cooperative, Inc. to set up cable television service operations in the city, for which the company will pay a municipal franchise tax.

The council agreed to allow the company to set up an internet protocol television system to provide service to local subscribers.

In exchange, , the agreement calls for the company to pay the city 2 percent of gross receipts, per yearfor the next 10 years, after ...