from: The Ledger [1]
Cable Bill Clears Senate Panel
Plan would make it easier for telephone companies to offer television service.
By Lloyd Dunkelberger
Ledger Tallahassee Bureau
Published Wednesday, April 25, 2007
TALLAHASSEE - A bill that would make it easier for phone companies to offer cable television services cleared its last Senate committee Tuesday, setting up a final floor fight later this week that will decide the fate of the proposal.
Meanwhile, a study, paid for by the phone companies, says Florida consumers could save more than $400 million annually through increased competition if the legislation passes.
The bill (SB 998) that emerged from the Senate General Government Appropriations Committee on Tuesday appeared to tilt in favor of the phone companies.
In an amendment, the Senate panel eliminated a provision that cable companies be required to reasonably "build out" their services so that they also reach rural areas or low-income communities.
Eliminating that provision immediately drew criticism from local governments and some consumer advocates.
"This is worse than what came out of the House," said John W. Smith, a lobbyist for the Florida League of Cities.
Brad Ashwell, a lobbyist for Florida PIRG, a nonprofit citizens advocacy group, said the bill could hurt consumers by allowing the new cable providers to offer their services in limited areas.
"We are vehemently opposed to it," Ashwell said. "It represents an about-face. It's completely unacceptable from the consumer's standpoint."
The Senate bill is scheduled for its first floor debate Thursday.
Rep. Trey Traviesa, R-Tampa, said the revised Senate bill moved the measure closer to the cable bill (HB 529) that has already been approved by the House.
The bill makes it easier for phone companies to compete in the cable market by eliminating the need to win approval from every local government and replacing it with a statewide franchising system.
"I love it," Traviesa said about the revised Senate bill. "It's time. Other states are doing it."
Traviesa had argued against requiring the new cable providers to "build out" their services, contending that it was an anti-competitive provision that would drive up the cost of cable services.
"The more expensive cable services are, the fewer poor people can afford it," he said.
Critics of the Senate bill said that in addition to potentially hurting rural and low-income communities, it will also lead to spotty customer service because the state government, not local governments, will be overseeing the companies.
Traviesa said if customers are dissatisfied with their service they can switch companies, because the new franchising system will provide more competition.
To bolster the case for the legislation, Traviesa released a report from a group of economists who projected consumers could save more than $400 million if competition increases.
The report - paid for by the phone industry but compiled by The Washington Economics Group Inc. - calculated, based on federal studies, that Florida's 4.6 million households that have cable services could save an average of $7.32 a month or about $88 a year.