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from: Belleville News Democrat

Cable competition bill passes Senate

DAVID A. LIEB
Associated Press

JEFFERSON CITY, Mo. - Senators signed off on legislation Tuesday intended to give TV viewers more choices than their current cable and satellite companies.

The bill would make it easier for telecommunications companies such as AT&T Inc. to begin offering television service to Missourians over their phone and Internet wires. Senators passed the bill 32-2, sending the measure to the House.

Telephone companies already could offer video service in Missouri. But like the cable companies, they would have to strike franchise agreements with each city or area they want to serve.

The legislation would instead allow them to get a single statewide video franchise from the Missouri Public Service Commission. Cable companies also could opt out of their local deals in favor of the statewide approval.

Eleven states, including neighboring Kansas, already have similar laws or policies.

If Missouri's bill is signed into law, San Antonio-based AT&T has pledged to spend more than $100 million to expand its video service in Missouri. But spokesman Kerry Hibbs would not say when its video service would be available to Missourians.

AT&T already has approached about 120 municipalities in the St. Louis and Kansas City areas about offering TV service, but so far has agreements with just six St. Louis suburbs, Hibbs said.

If the company could get statewide approval, "it really will give consumers more choice for video service ... and in much quicker fashion than by going city to city to get a municipal franchise," Hibbs said.

A similar bill failed to reach a vote last year in the Senate because of opposition by the cable TV industry. But sponsoring Sen. John Griesheimer, R-Washington, announced at the start of this session that cable companies had reached a compromise with AT&T.

After being amended by senators, the bill that passed no longer contained all of the provisions cable companies had sought, such as a new fee on satellite TV service similar to what cable companies must pay.

"Really the only thing positive left for the cable industry is the ability to opt into the statewide franchise system upon passage of the bill," said Greg Harrison, executive director of the Missouri Cable Telecommunications Association. "But I think the majority of the cable operators are still on board."

During a debate that spanned several days, senators adopted a couple of amendments intended to fortify the bill's consumer protections.

But some consumer advocates would have preferred more protections.

"We're not convinced that competition, being defined as two or three different types of providers in the area, will necessarily eliminate serious problems someone may have with tearing up their yard or inaccurate billing," said John Coffman, who represents the AARP.

Sen. Matt Bartle, R-Lee's Summit, who voted for the bill, said school districts also have raised concerns that they could lose free TV service now incorporated into local franchise agreements.

"They're looking at thousands and thousands and thousands of dollars every year if the incumbent provider chooses to opt out of the franchise agreement," Bartle said.