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from: MultiChannel News

Reform Off Table in Tennessee

By Linda Haugsted -- Multichannel News, 5/28/2007

Citing opposition from local governments, the sponsor of a bill to reform cable franchising in Tennessee has withdrawn the legislation for the session.

The bill could be resubmitted next year, but sponsor Rep. Steve McDaniel (R-Parkers Crossroads) told the Associated Press that he wouldn't push the issue of reform unless he sensed a “change of attitude” by city and local officials who fought the bill. Cable incumbents had formed a coalition with the local governments to fight the bill.

Marty Dickens, AT&T Tennessee State president, said the action will cost consumers millions in cable fees from prompt deployment of competitive services, and deny the state millions in capital investments. AT&T has been the bill's staunchest backer.

“By running out the clock on this legislation the cable industry, Tennessee Municipal League and Tennessee County Services Association may have won the battle but consumers have lost the war … Rather than the consumer being in charge of the video marketplace, the cable companies have retained control,” Dickens said in a statement.

“We're declaring a victory,” said Stacey Burks Briggs, executive director of the Tennessee Cable Telecommunications Association.

Briggs said the cable trade group anticipated there would be interest in franchise reform in the state due to the example of its congresswoman, Rep. Marcia Blackburn. She was one of the first federal proponents of video-franchising reform several months ago.

“We began building our coalition then,” Briggs said.

The Tennessee bill still appeared to be moving forward May 23, as it was the subject of a House Commerce Committee debate. But even as they debated modifications, representatives questioned the bill or the need for its speedy passage.

Speakers noted that the bill had changed substantially from its introduction, with nine amendments requested in the Senate and another 30 submitted on the House side.