from: Broadcasting & Cable [1]

Cities Seek Stay Of FCC Video Franchise Changes

By John Eggerton 6/20/2007 2:13:00 PM

Groups representing local governments and nonprofit organizations have gone to court to try to block changes to the FCC's video franchising rules.

In a motion filed with the Sixth Circuit Court of Appeals Wednesday to stay enforcement of the FCC order, the groups said the changes will "severely restrict the ability of local governments to protect their citizens, rights-of-way, community channels, and public safety networks."

After Congress failed to pass a national video franchise reform bill that would have eased the entry of telco video and broadband competitors to cable, the FCC undertook its own reform in response to a longstanding inquiry into whether the franchise rules impeded competition to cable.

The FCC concluded that they did, and changed the rules to establish a more streamlined application process for franchises, including a 90-day shot clock on negotiations and restrictions on what conditions could be put on those franchise agreements.

Local governments had pledged to take the ruling to court and some Democratic leaders in Congress-Energy & Commerce Committee Chairman John Dingell notably, had complained that the FCC had exceeded its authority and essentially tried an end-run around Congress.

The FCC has said it plans to extend the same franchise relief to incumbent cable companies, but the The National Cable & Telecommunications Association appealed the FCC order to the same cout last month, though a spokesman said it is not seeking a stay of enforcement.

Among those filing the suit were the National League of Cities (NLC), National Association of Telecommunications Officers and Advisors (NATOA), The United States Conference of Mayors (USCM), and the Alliance for Communications Democracy (ACD).