from: Tech and Communications Today [1]
State Wide Video/Cable TV Franchise Laws= No Reduced Bills or Competion
Posted by technology2day
This month Governor Strickland signed into law State-wide video franchise bill. This bill of course was sponsored and paid for by AT&T, and Verizon along with their lobbing groups they created to ensure the public this was the greatest thing for Ohio. Do you know what a State Wide Video Franchise Law is? If you answered No, then you’re like most people.
You have no clue what it means for you. Well I’m here to tell you. This bill was written by and for the publicly traded telephone companies who are wishing to get into the business (once again) of providing cable TV services to neighborhoods; yes neighborhoods NOT cities. I typed neighborhoods only because this new agreement does not have any real strict built out requirements like current cable companies; Time Warner Cable, Buckeye Cablevision, Bright House Cable, and Cox Communications has. Current cable companies have agreements with EACH and EVERY city or village they wish to offer service in that states what each and every requirement is to do business within the area is. The requirement also includes what percentage of revenue that the city is paid to maintain the upkeep on public parks, sidewalks and other areas that are used every day by the general public. The city charges this to the cable companies because they utilize what is defined as the Public Right of Way. This is the area that is between the sidewalk and your street.
Cities also demand how many public access changes are required to be carried; such as PBS, and local community channels that are used for City Hall/Village Council Meetings and a Community Billboard of events. The current law strips this away from the local government and gives the power to the state. They also decide who is ALLOWED to provide YOU the customer your video, high speed cable internet and digital telephone services and for how long. Currently cable companies contract with your local government, a study is done on what the company could bring to the city, how much does the city residents like the company and what is wanted. The government and then offers the company a contract to offer service. Either the cable company accepts or rejects it with a counter offer- such as buying a house. This process has worked for a over a decade and works out very well for the customers and consumers; until phone companies did not like being told what they could and could not due when local governments would not accept their bribes like other government leaders and branches do (for example the Federal Communications Commissions).
But when these laws takes an effect the Ohio Public Utilities Commission or the Secretary of State will be handling all the complaints, approving and denying applications to offer services along with what they already do each and every day. For the PUC handling the new video requirements it now would include handling the complaints but also what they do each and every day (besides give Verizon and AT&T what they want); regulate telephone, water, transportation, gas and the rail roads.The bill promises that increased competition brings lower prices but at what expense? The expense that we the customer/consumer actually pay more? Ohio is the 12th state that has passed the Statewide Video Franchise bill into law with Texas being the first one. Studies have shown (link) that prices have not decreased for anyone. Instead prices are the same if NOT MORE than what they used to be.
Verizon was the first telco-Video provider to release this year they would be raising rates. After they promised their rates would be lower than cable. Cable providers soon followed with their yearly rate increases (but read my article about TWC increasing RoadRunner speeds in Mid-Ohio). The telephone companies have no reason but the local government who issued, and still does until this law takes affect, the franchise rights to cable companies slowed their development due to they wanted a say so on what went on with the Public-Right-A-Ways where AT&T has decided to drop these refrigerator sized boxes in people’s front lawns, directly in front of their homes with out any regards to the home-owner at all. Several cities have complained to AT&T regarding this matter including their cherry-picking of where they offer services at.North Carolina currently is one of the 22 states that have this Video Franchise law which has resulted in the state LOSING MONEY due to the wording of this bill. Like our bill it is suppose to increase competition, reducing pricing, and giving the consumer more choices for video services but ended up costing BOTH the local and state governments millions of dollars in lost revenue. But it happened in the six months the agreement has been in affect because the tax on cable is now funneled through the Department of Revenue.But as with the other states; documents for competitive video services has not materialized either. Which means this could be a very bad thing for Ohio.
Keep in mind the telephone companies are trying to pass these laws at the federal level and allow the FCC to handle their requirements.The only other thing I have to say besides AT&T and Verizon already buying Mr. Strickland this isn’t going to be very pretty for Ohio let alone the rest of the states passing these laws.
Sources: http://www.indyweek.com/gyrobase/Content?oid=oid%3A156867