Save Access

from: Eagle Tribune

Point: Cable competition means lower prices
Eagle-Tribune

Jack T. Yunits

The video franchise reform legislation now before the Massachusetts Legislature could power one of the greatest economic engines our state has seen in a long time. By streamlining the cable franchising process created 30 years ago, Massachusetts can finally introduce genuine cable competition, and welcome the myriad benefits of a growing broadband economy. The cable companies are understandably opposed to the bill - their monopolies will be forced to compete for now-captive customers, after all.

Unfortunately, the same narrow self-interest is leading another group to oppose this common sense reform legislation. Public, education and government (PEG) cable access channels are opposing reforms because they would undermine cable access producers' big-budget dreams. Right now, every company that gets a local cable license is required to pay a certain amount of money to the local PEG offices. Under the current rules, if a second company comes in to compete - say, a telecommunications company or Internet provider wanting to break into the cable business - they'd have to fork over the same amount, effectively doubling the PEG budget overnight!

The real question here is how much do these channel operators really need? How many more cameras and studios, how much money, could these stations possibly need? And the cable subscribers are paying for it on their bills.

The bill now before the Legislature gives municipalities total discretion to set franchise fees - up to the federal maximum of 5 percent of cable television revenues. In addition, there's a 1 percent capital fee to support PEG channels. This fee would cover cameras and other gear needed by the studios. This approach allows PEG costs to be evenly shared by every company with a cable franchise. PEG programmers get all they need, the channels are protected and consumers get the benefits of cable TV competition.

The legislation offers the right funding solution for PEG channels, the important content they carry, and perhaps most important, for consumers. This franchise reform bill keeps PEG funding at a fair and appropriate level without unnecessarily creating large reserves of cash that the studios may not need, but right now have.

Massachusetts consumers for too long have been overcharged for cable television service. It's time to support legislation that speeds the arrival of cable TV competition and assures that we'll have PEG at reasonable funding levels for years to come. That solution is The Massachusetts Cable Choice and Competition Act.

Jack T. Yunits is president of the Massachusetts Consumers for Technology and Cable Choice and a former mayor of Brockton.