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from: Cleveland.Com

Big cable gets its way vs. local franchises

Friday, June 15, 2007
Aaron Marshall
Plain Dealer Bureau

Columbus - Giants in the pay-TV business could sell their video services with one unified, statewide agreement and wouldn't have to cut deals with local governments under a bill passed by House lawmakers Thursday.

By a vote of 92-2, the Ohio House passed Senate Bill 117, a proposal that supporters, including AT&T, say will spur increased competition and lower cable bills. Opponents, including municipal officials, say the bill will mean lost revenue and lost control for local communities.

"This local franchising process is cumbersome, outdated and has the effect of strangling new technology and new investments in our state," said State Rep. John Hagan, an Alliance Republican. "This bill will allow consumers to have a choice."

The House passage comes after the Ohio Senate easily approved a slightly different version of the legislation. That could mean lawmakers hash out the differences in a conference committee or agree to the House version and send the bill to Gov. Ted Strickland. Strickland spokesman Keith Dailey said the governor supports the bill.

Changes made by House lawmakers include an amendment that specifies that existing local franchise agreements stay in place until a competitor enters a given market. Other added language, backed by public access channel supporters, requires providers to offer at least three public access, educational or government channels on basic service tiers.

While House lawmakers didn't have a disparaging word to say on the legislation, municipal officials still weren't happy with the House's version. Susan Cave, director of the Ohio Municipal League, called the changes "minimal."

"The changes weren't significant enough to make us support the legislation," she said.

In particular, Cave said, she is worried about connections for government, school, police and community buildings that the bill no longer requires companies to provide. Another issue for municipal opponents was language requiring that providers cover only 30 percent of low-income households within five years.

Public testimony over the issue raged for weeks. Municipal groups and public access advocates were vehemently opposed to the bill, but a phalanx of deep-pocketed lobbyists from AT&T and cable companies were also on hand.

A group called TV4US Ohio, partly bankrolled by AT&T, manned the fax machines late Thursday to express support for the vote.

"Our representatives heeded the call from consumers across the state clamoring for a real choice in cable providers," said a portion of a statement from Sarah Briggs, the group's executive director.

More than a dozen states, including Indiana and Michigan, have passed similar statewide video franchising agreements.

To reach this Plain Dealer reporter:

amarshall@plaind.com, 1-800-228-8272