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from: Globe Gazette

Senate OKs bill to ease cable TV competition

By Dan Gearino, Globe Des Moines Bureau

DES MOINES — Cable television providers would have an easier time entering the Iowa market under a bill passed Tuesday in the Iowa Senate, a measure that supporters say would lead to lower rates and greater options.

The bill, which passed 44-6, would give the Iowa Utilities Board the authority to grant statewide franchises to cable companies. This would replace a system in which cable companies need to get approval from local governments.

“The bottom line here is the present process prevents competition.

Lack of competition results in fewer choices and higher prices for consumers,” said the main sponsor, Sen. Steve Warnstadt, D-Sioux City.

The “no” votes came mainly from senators who had concerns about how the bill would affect existing cable service, such as Sen. Jeff Danielson, D-Waterloo

“It is not an easy issue to solve,” Danielson said.

Over the last two years, a dozen states have passed legislation that makes it easier for new competitors to enter the cable television market, according to the National Conference of State Legislatures.

Texas started the trend in 2005 when its Legislature passed a bill to help settle a feud between cable companies and phone companies.

Technological advances in the telecommunications industry have allowed cable and phone providers to offer each other’s services.

However, state laws governing cable franchise rights mean that phone companies need to negotiate with individual cities for the right to offer cable services. Phone companies such as Qwest argue that customers would be better served if cable franchises were controlled at the state level.

“What we’re trying to do with this legislation is create a competitive environment, much like the telephone industry has today,” said Qwest lobbyist Michael Sadler, interviewed Monday on the Iowa Public Radio.

The main opponent of the bill is the Iowa League of Cities, which argues that the current system allows cities to customize their cable franchise agreements to meet local needs. Cities sometimes negotiate special deals that include free services for the city government.

“There’s a problem with a one size fits all mentality in Iowa.

Different communities have different needs,” said League of Cities attorney Terrence Timmons, also interviewed on Iowa Public Radio.

Cable companies opposed previous versions of the bill, but they dropped their opposition after legislators added a provision that says new competitors would pay the same fees as current providers.

Dan Gearino can be reached at 515-243-0138 and dan.gearino@lee.net.