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from: Telecom Web

Telcos Win: California Senate OKs Statewide Video Franchises

The California state Senate yesterday passed a video franchise measure establishing a streamlined statewide certification and authorization process that will make it far easier and speedier for major local exchange carriers to enter the market against incumbent cablecos (TelecomWeb news break, Aug. 18).

In an evening hours 33-4 vote, the Digital Infrastructure and Video Competition Act of 2006 (AB 2987) was approved in a clear victory for the likes of AT&T, Verizon Communications and other major local exchange carriersseeking quick deployments and offerings of Internet Protocol television (IPTV) services by circumventing local franchise authorities.

AB 2987 has made relatively rapid progress since the spring, having received the full Assembly's 77-0 passage of the bill in late May as well as going through three key Senate committees - each via unanimous votes - in June and July. Authored by Assembly Speaker Fabian Nunez (D-46th District) and Assembly member Lloyd Levine (D-40th District), who is also chair of the Utilities and Commerce Committee, the bill is now expected to back to the Assembly for concurrence and then to the Governor's office for consideration.

AB 2987 will replace a 40-year-old cable TV law and franchising system with the state process, but it provides what some consider safeguards for local governments and consumers by guaranteeing that communities continue to receive franchise fees consistent with those paid by current cable TV operators and provides anti-discrimination/redlining and build- out guidance (both originally among the unsettled issues). It also seemingly placates incumbent cablecos by allowing existing franchisees to opt into the state franchising system; the California Cable & Telecom Association had said it would oppose the bill unless it was amended to address incumbents' concerns.

As in many other states, the California legislation has been heavily pushed since last year by AT&T and Verizon, which are also among the biggest lobbyists for bills in the U.S. Congress to establish a national streamlined franchise process that would also pre-empt the old and new state laws. The California Senate action drew favorable statements from the major LECs.

Ken McNeely, president of AT&T California, said the Senate vote reaffirms that both Democrats and Republicans alike support the benefits of video competition: consumer cost savings, private investment in the state's broadband infrastructure and thousands of new jobs for California. "After the bill goes back to the Assembly for concurrence, the Governor's signature can make competition and choice a true reality for California," he added.

Tim McCallion, Verizon West Region president, also maintained that besides accelerating fiber-optic network, video competition and job creation, the bill also maintains local government oversight in appropriate areas. "The overwhelming support this bill has received in the state Assembly and Senate sends a clear bipartisan message: AB2987 will ensure Californians get the best deal possible for video service," he said.

As reported recently (TelecomWeb news break, Aug. 29), the telco-based Consumers for Cable Choice (C4CC) organization and other interest group allies are now starting as lobbying campaign in preparation for the Congress to reconvene with a renewed call to pass the federal legislation. This effort is taking leaders on tours to different cites where they are calling on U.S. Senators from the relevant states to vote in favor communications reform legislation - the Advanced Telecommunications and Opportunity Reform (ATOR) Act (newly titled H.R. 5252) - that includes the national franchise proposal.