from: The Times [1]

House passes cable competition bill
posted Online: 2007-06-02

STEPHANIE SIEVERS, sng2@springnet1.com, 217-524-5797, ,

SPRINGFIELD -- The Illinois House passed legislation Thursday expected to bring greater cable competition by making it easier for high-tech video providers such as AT&T to break into local television service markets.

The bill, largely revamped in order to overcome cable industry objections, was approved 113-0 and now goes to the Senate as state lawmakers head into overtime session.

Under the bill, video providers could get statewide franchise licenses rather than having to negotiate agreements with individual municipalities as cable companies have traditionally done, a practice critics say has stifled competition.

Rep. Mike Bost, R-Murphysboro, voted for the bill but said he has concerns competition won't happen as quickly in southern Illinois and other areas of the state that aren't in AT&T's market.

So far, AT&T is the only telephone company ready to jump into the television market, but sponsor Rep. James Brosnahan, D-Evergreen Park, expects other companies to follow suit.

"I'm very hopeful that other companies will take advantage of it, such as Verizon or maybe some mid-sized telephone companies out there," Brosnahan said. "You're going to see more and more telephone companies get into this field because they're losing customers every day to cable companies."

To prevent new companies from just "cherry picking" customers in more affluent neighborhoods, companies will be required to offer a certain portion of their service to low-income communities.

The bill also institutes some of the toughest consumer protections by limiting service contracts to 12 months and requiring companies to honor service appointments or offer customers monetary credits, Brosnahan said.

If signed into law, the measure would expire in six years and the state would re-evaluate it.