from: PennLive [1]

House proposal would step up giving viewers more selection
Monday, May 21, 2007

Aproposal in the state House is a solid step to ward speeding up consumer choice in selecting cable television service while also providing necessary regulatory oversight.

House Majority Policy Chairman Todd Eachus, D-Luzerne, wants to create a statewide franchising law and put it under the auspices of the Public Utility Commission.

He has come up with a framework similar to one we previously raised. It has also garnered support from the public advocacy group PennPirg and the Consumers Union, as well as some labor groups, according to a copy of a memo Ea chus circulat ed to other legislators.

The proposed legislation addresses advances in fiberoptic and broad band that are enabling tele communications compa nies to offer video services -- sometimes bundled with Internet and phone offerings under one package.

This all holds great potential for more consumer choice, but one problem in Pennsylvania is the need for telecom companies -- as cable companies did before them -- to first negotiate franchise agreements with local municipalities. While these agreements aren't unique to Pennsylvania, the more than 2,500 municipalities here pose a particularly daunting challenge.

In the case of Verizon, the state's dominant telecom, it needs some 1,600 agreements to cover its service territory. It has obtained 131 so far, meaning it's several years away from statewide offerings.

At the same time, the consternation of municipalities in giving up this jurisdiction is understandable. They collect 5 percent franchise fees, get a sort of regulatory control over rights of ways and have the leverage to request certain features on the cable system.

Although these local contracts date to the early days of cable, when the infrastructure was more intrusive, supporters point to the loss of revenue, feel their loss could jeopardize government access channels, and allow companies like Verizon to "cherrypick" more financial lucrative neighborhoods for service.

Our feeling has always been these issues can be addressed within the context of one state franchising law and Eachus' proposal covers most of these issues. Where we have parted with telecom companies like Verizon, however, is that some regulatory oversight is needed.

The PUC is the logical agency since it has long overseen telecommunications and would have the appropriate resources and expertise. Eachus also proposes empowering the state consumer advocate to represent consumers before the PUC, federal agencies and in the courts.

Overall, we like this concept, but will keep an open mind until we hear more from industry groups and others. Both Verizon and the Broadband Cable Association of Pennsylvania say they need more details before commenting.

However, we again note that this issue shouldn't be cast as a municipal government issue, or Verizon against Comcast.

This is about greater consumer choice amid rapidly advancing technology. The sooner we can get off the dime and arrive there, the better.