Note: This is the spin Freedom Works is putting on municiplaities that are trying to protect local control of "right of way" and home rule.

from: PR Newswire [1]

Public Officials Using Tax Dollars to Lobby for Higher Cable TV Rates

Tennessee Consumers Harmed by Outdated Laws; Cable Rates Artificially High

WASHINGTON, April 2 /PRNewswire-USNewswire/ -- Tennessee municipalities
are spending tax dollars to defeat cable franchise reforms that would, if
enacted, lower rates and improve service quality for millions of Tennessee
consumers. As detailed in a report released today titled Assessing the Case
for Cable Franchise Reform by Diane Katz of the Mackinac Center for Public
Policy, the Tennessee Municipal League and its members are also employing
false claims and twisted facts in their attempt to block the proposed
reforms from winning passage in the Tennessee Legislature.

The legislation, if enacted, would streamline the process of obtaining
a cable TV franchise by adopting a uniform agreement statewide rather than
each municipality imposing its own. Easing competitors' entry into local
markets would save consumers millions of dollars annually, create thousands
of new jobs and expand the availability of broadband services, according to
the report.

''The benefits of reform are undeniable, but the municipalities don't
want to lose the franchise freebies they collect, including TV time for
themselves and broadband services for their offices,'' said Diane Katz, a
telecommunications analyst who authored the report. ''That they're using
tax dollars to deny Tennesseans lower cable rates is an insult to taxpayers
and contrary to the best interests of the state.''

The lack of cable competition has resulted in cable rate increases that
have dwarfed inflation for a decade and more, according to the report. For
example, the cost of standard cable service in Chattanooga soared 52
percent between 2000 and 2007; in Knoxville by 45 percent; in Nashville by
33.5 percent; and, by nearly 31 percent in Memphis.

''Competition would give consumers far greater power over the cost and
quality of video service,'' said Katz. ''All that stands in the way are
municipal officials who are putting their own lust for power ahead of
citizens' best interests."

FreedomWorks Chairman and former Majority Leader Dick Armey commented:
''A basic fact of economics is that when companies compete, consumers win.
Another fact is that special interests are always looking for ways to
benefit at the expense of the public at large. The hurdle telecom reform
faces is that outdated regulations are protected by special interests. It
is only when consumers come together and let their representatives know
they want choice in cable providers do you see real change. That change is
coming to Tennessee.''

The report is available at:
http://www.freedomworks.org/informed/issues_template.php?issue_id=2817.
Contact: Adam Brandon
Phone: (202) 942-7698
Email: abrandon@freedomworks.org