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from: Columbus Dispatch

Ohio House passes business-backed bill for cable-TV competition
Cities don't like pre-emption of franchise contracts

Thursday, June 14, 2007 11:36 PM
By Alan Johnson
The Columbus Dispatch

A much-debated bill that would open the video-service business in the state to competition was approved overwhelmingly today by the Ohio House with no debate.

"This bill will allow consumers to have a choice," said state Rep. John P. Hagan, R-Alliance. Rep. L. George Distel, D-Conneaut, said it will be "good for companies, government and consumers."

But the Ohio Municipal League doesn't think Senate Bill 117 is such a good deal for cities. The organization remains opposed to the measure, despite several amendments worked out this week by a House committee.

"They only nominally addressed the issues," said Susan J. Cave, executive director. For example, the measure doesn't deal with maintaining institutional channels for government, schools and law enforcement, she said.

On the other hand, TV4US, a coalition that includes telephone giant AT&T, cheered passage of the bill.

"We are now closer than ever to experiencing the benefits of competition: more choice, lower rates and improved customer service," Sarah Briggs, the coalition's executive director, said in a statement. She said the legislation would save consumers $306 million on their cable bills annually by injecting competition into the state marketplace.

The bill, approved 94-2 today by the House, will be sent back to the Ohio Senate where it originated. If senators object to changes made in the House, the bill will go to a conference committee. Otherwise, it will be sent to Gov. Ted Strickland for his signature.

The legislation, sponsored by state Sen. Jeff Jacobson, R-Vandalia, allows service providers to obtain a single, statewide franchise instead of hundreds with local communities. The Ohio Department of Commerce will oversee the video-service business.

The big winner is AT&T, which is mounting a well-funded, high-stakes campaign in Ohio and a dozen other states to roll out its video service, U-verse, over existing telephone lines.

However, cable provider Time Warner also will benefit by being able, after a transition period, to obtain a single statewide franchise agreement.

The House Public Utilities Committee made several changes to appease opponents, including requiring that current franchises remain in place until a competitive video provider is marketing its product in the area. Previously, providers could drop the franchise agreement with a 30-day notice.

Other amendments would require service providers to make room for three, instead of two, public-access channels on the basic tier, to pay any underpaid franchise fees within 30 days, and allow commerce officials to enforce standards and impose fines.

ajohnson@dispatch.com
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