from: The Eagle Tribune [1]

Customers' bills to drop? Cable TV law stirs debate in city

By Jason Tait , Staff Writer
Eagle-Tribune

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HAVERHILL - One side says your cable television bills could drop. The other says you could lose your community access television station.

The debate has begun on how Massachusetts residents get and pay for their TV entertainment, and the fight is heating up in Haverhill.

The City Council and mayor are clashing over a proposed state law that allows more than one cable television company to compete for customers in a community.

The proposed Cable Choice and Competition Act would make it easier for two or more companies to offer cable to residents of a community, creating competition and lowering cable bills, proponents say. Mayor James Fiorentini supports the law.

But the City Council backs the current system, which allows Haverhill to sign a long-term contract with one cable franchise. In Haverhill that company is Comcast.

Councilors voted 8-1 on a nonbinding resolution to oppose the proposed law. They mailed the communication to the governor and other state lawmakers, asking them to veto the bill.

The mayor responded by writing a letter of his own to state officials, opposing his council's stance.

"It is in the interest of Haverhill consumers that there is cable competition," Fiorentini said. He added that studies show the average cable bill drops by 17 percent when there is competition.

The proposed law was written by state Sen. Steven Panagiotakos, D-Lowell, and is being pushed by Verizon, one of Comcast's biggest competitors.

A big sticking point for city councilors is how to pay for local cable television channels.

Haverhill has 15 months left on a 10-year contract with Comcast, the city's sole cable provider. That contract diverts 5 percent of each cable bill to pay for government and community access channels.

Employees at Haverhill Community Television fear that if the proposed law passes it could put them out of business.

Darlene Beal, executive director at Haverhill Community Television, has asked the mayor not to support the proposed law, but Fiorentini is not budging. Beal told city councilors that it could spell the end to community access cable, which broadcasts City Council meetings and programs produced by residents.

Council President Michael Hart said the proposed law reduces the percentage of a cable bill that goes toward local access channels from 5 percent to 1 percent. At that rate the local access channels would fold, he said.

Fiorentini said he would not support any legislation that would cause the local television station to fail. He believes the law will evolve to eventually account for that payment.

"This legislation would not put Haverhill Community Television out of business," Fiorentini said. "Their future is assured, and we will continue to support and work with them."

Hart also said the bill takes away a city's chance to negotiate with cable companies and sign one to long-term deals. He calls the bill "a wolf in sheep's clothing" that takes power away from local communities.

"If you look at this bill, there is no more negotiating," Hart said. "There is no more vetting. They fill out a simple application with the state."

State Rep. Brian Dempsey, D-Haverhill, chairs the Joint Committee on Telecommunication, Utilities and Energy, which is vetting Panagiotakos' proposed law. Dempsey said there are different viewpoints on how the bill would affect local cable access television, and those questions will be answered during a public hearing tomorrow at 10 a.m. at the Statehouse.

He expects between 300 to 400 people at the hearing, many of them community access television employees worried about losing their jobs.

"There are clearly two sides to this," Dempsey said. "We'll be looking very carefully for what is best for the Commonwealth."

Fiorentini would want to change at least one aspect of the law that allows any cable company to get a license within two weeks after filing an application. He would support extending that time frame.

Councilor William Ryan was the only councilor voting against the council's resolution to oppose the law. He said he supports competition, and the kinks will be worked out eventually to guarantee that local cable access channels survive.

Proposed cable TV competition law

Mayor's view: Competition among companies will lower customers' bills

Council's view: The city would be unable to negotiate with a cable company, and money for local access TV