House passes telecom bill
Web Posted: 08/10/2005 11:34 AM CDT
Sanford Nowlin
San Antonio Express-News Business Writer
http://www.mysanantonio.com/business/stories/MYSA081005.telecom.en.5d952fae.html
The Texas House of Representatives this morning passed a bill that would
make it easier for SBC Communications Inc. and Verizon Communications Inc.
to offer pay television in the state.
Lawmakers had twice debated the measure, which lets the big phone companies
negotiate a single statewide franchise to compete with the cable industry
in the video business. Legislators, mired in a contentious debate over
school finance and tax issues, were unsuccessful in passing two earlier
proposals.
A spokeswoman for Gov. Rick Perry wouldn't say whether the governor plans
to approve the latest bill a version of which passed the Senate last
night. However, she said that Perry "supports the idea of expanding
competition and choices for consumers."
San Antonio-based SBC and New York-based Verizon have lobbied strenuously
for the regulatory change, saying they need a simpler means of getting into
Texas' video market. Under current rules, the companies would need to
negotiate individual agreements with every city they plan to serve a
process they said would slow down their entry into the TV business.
If Perry signs the bill into law, Texas would be the first state to let new
video providers negotiate a single statewide franchise. The Federal
Communications Commission is likely to weigh in on the issue in coming months.
Supporters of the measure said it will create more choice for consumers and
generate new jobs and investment.
SBC and Verizon are spending billions to roll out vide services over their
Internet connections so they can compete with the cable industry, which is
moving aggressively into the phone business.
I thank you for your patience on this debate, said Weatherford Republican
Phil King, who championed the bill in the House. I really think this is a
good bill for Texas, not just for consumers but also business.
But cable companies hotly opposed the measure, saying it gives their new
competitors an unfair advantage and strips franchising dollars and
oversight from cities.
Some bill critics said eliminating cities' franchising oversight could
allow the phone companies to bypass rural or poor areas while rolling out
their service.
I think this body ought to be standing very firm on any
anti-discrimination message, said Rep. Yvonne Davis, D-Dallas. We
shouldn't even be wavering on that.
The franchise bill also lets SBC and other dominant phone companies raise
prices on add-on phone services in large cities like San Antonio and
Houston and in smaller ones where they can show regulators they face
competition. Basic phone rates would remain frozen until 2007.
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923 Fax: 713-743-3927
antunes at uh dot edu
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