from: Baraboo News Republic [1]
Expert: Cable bill won't help here
By Tim Damos
Baraboo sports fans looking for alternatives to TV services might not get them under a cable deregulation bill expected to be signed by Gov. Jim Doyle next month.
The bill has been a point of contention for politicians, lobbyists, and angry cable subscribers who are seeing cost increases while missing their favorite sports teams' games.
Charter Communications offers cable television as part of an agreement with the city of Baraboo, and gives customers the option of getting Internet and phone service.
State law currently allows municipalities to franchise cable television service. Local governments contract with service providers, like Charter, and can enforce customer service and protection standards.
Under the proposed bill, the state would be responsible for franchising. Supporters say streamlining the process would make it easier for companies to offer services in more areas and would allow competition to drive down prices.
Another company, CenturyTel, offers telephone and Internet services in the Baraboo area and has an agreement with the DISH Network to offer its costumers a bundled package that includes satellite television.
But the company has no plans in the immediate future to provide its own video services, said Kim Valiquette, CenturyTel's marketing communication manager.
And because other companies that are planning to offer increased video services — like AT&T — have no existing infrastructure within Baraboo, it is unlikely they will move into the city for a number of years, said Barry Orton, professor of telecommunications with the University of Wisconsin-Madison and an opponent of the cable bill.
He said those companies will begin offering video services in locations where they have existing customers, and will start with the most heavily populated areas.
"They're wiring places like Milwaukee, Racine, Kenosha and Waukesha," Orton said. "Charter customers (in Baraboo) will see no increased competition as a result of the law."
While it's true that companies will first go where they have a strategic interest, the bill opens doors for more providers to get started and move into new areas, said Thad Nation, executive director of TV4US, an advocacy group made up of industry giants like AT&T that pushed for the bill.
"I don't think any of us can look into a crystal ball and say what's going to happen," Nation said.
He said companies like Verizon are aggressively moving into areas where they don't already provide service.
Nation said smaller companies will be able to offer services because of the streamlined state licensing process. That will result in more competition and lower prices, he said.
Will service improve?
Increased competition will force companies like Charter to provide better customer service, Nation said.
Right now, if a cable customer has a complaint that isn't corrected by their provider, they can ask city officials to step in. And sometimes, local government officials can get the provider to address a complaint that otherwise would have been left unresolved.
Under the new law, all those complaints would be forwarded to the state Department of Agriculture, Trade and Consumer Protection. The bill doesn't provide that agency with money for additional staff to look into those complaints, said Janet Jenkins, administrator of the Division of Trade and Consumer Protections with DATCP.
"We'll basically have more things to do and no additional resources with which to do them," Jenkins said. "It's going to be a challenge."
Jenkins said the law also makes DATCP responsible for handling complaints involving satellite television and other video services, which also will increase her department's workload.
Companies may take advantage of the lack of oversight and provide lower-quality customer service, Orton said.
Deals that offer bundled services, such as the CenturyTel deal, may become more frequent and could lead to more confusion among consumers, Jenkins said.
"If all your services are with Charter and you don't like them, what's it going to cost you to go with someone else?" she said. "I think we're going to see a lot of confusion among customers. It's a rapidly changing industry because technology is changing rapidly."
City to lose revenue
Baraboo City Administrator Ed Geick said if Doyle signs the bill, the city will lose revenue it normally gets from cable franchising fees. The city received $113,000 from that source last year and officials hope for about $120,000 this year.
Geick also said the cable competition bill should have included better safeguards for consumers.
"The cost of service might go down if there is actually increased competition," Geick said. "But the quality of service might decline."
Geick said he hopes Doyle vetoes the bill.
Cable bill at a glance
* What is it?: A statewide cable deregulation bill would end municipal control and franchising of cable services and would streamline the licensing process for all video services with the state.
* Where does it stand now?: The Assembly passed a version of the bill last spring and now needs to approve the version passed by the Senate earlier this month before Gov. Jim Doyle can sign the bill.
* What's next?: The bill would go back to the Senate or a conference committee if the Assembly doesn't pass the new version. Doyle is expected to sign the bill if it doesn't change much from its current version.