Texas OKs Statewide Telco Franchises
By John M. Higgins & John Eggerton
Broadcasting & Cable
8/10/2005 12:07:00 PM
http://www.broadcastingcable.com/article/CA633869.html?display=Breaking+News
Texas legislators have given telephone companies what they wanted, passing
legislation allowing them to launch video services without securing
town-by-town franchises.
The bill had been opposed by cable operators, who have long been forced to
secure a franchise for each city or suburb in which they operate.
The state senate approved the bill late Tuesday and the House signed off
Wednesday. The bill has now been sent to to Gov. Rick Perry for his signature.
The legislation paves the way for SBC and Verizon to apply for statewide
franchises to deliver cable-like video franchises. It also allows power
companies to offer broadband over powerlines.
The phone companies have argued that a statewide, and preferably a
nationwide, franchising model will advance the government's interest in
boosting competition to cable and increasing broadband penetration.
The cable industry doesn't see it that way, arguing that sparing the telcos
the regulatory hoops cable has had to jump through is unfair and that
whatever regulatory breaks the phone companies are given should apply to
cable too.
Cities understandably don't like losing control of the franchise process
and the potential of losing revenues they would otherwise collect from
local franchise agreements.
At least two bills have been introduced in Congress to make it easier for
telcos to launch video competition to cable, including one that would give
cable its playing field.
The first, introduced by Sens. Jay Rockefeller and Gordon Smith, gives any
phone company currently operating the right to add video without obtaining
an additional franchise, though it would be subject to essentially the same
franchising obligations as the cable system in the market it is entering.
More sweeping and controversial legislation was introduced just two weeks
ago by Sen. John Ensign.
It would eliminate the need for cable, telephone company, or any other
pay-TV provider to obtain local or state franchises.
Existing cable franchises also would be eliminated under his bill, which he
said is designed to "update the nation's telecommunications laws and
increase choices for consumers."
================================
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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