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from: Grand Rapids WZZM Ch13

You May Have A Choice Between Cable Companies, But At What Price?

Created: 11/28/2006 6:19:18 PM
Updated: 11/28/2006 9:11:54 PM

A bill that would alter the way cable television companies negotiate their deals is making its way through the state legislature. But, there is concern that if that legislation is not amended, it could affect much more than the number of options available to customers.

Over the years cable television has gone from being a luxury, to being the standard in West Michigan. A majority of homes have it, but most do not to pick their cable company. That may soon change. A bill that passed through the house, and will soon be taken up by the state senate, changes the structure of cable agreements between the companies and the government.

Right now cable providers, like Comcast, enter into contracts with local municipalities. They regulate what kind of fees companies pay, how much they put towards public access TV, and if they provide free lines to the cities and towns. The bill would make one standard statewide agreement, something consumer advocates say is a gift to big business.

"If the phone company is for something, and the cable companies don't oppose it, is it good for consumers? Answer that question for yourself," said Kathleen Sherman of the Michigan Association of Telecom Officers and Advocates. She made her comments at a media conference at the state capitol in Lansing Tuesday morning.

Many say the bill was created specifically for AT&T, because that company plans to provide cable service if it passes. But that's not the main problem people have with it. Opponents are worried that because the funding equation changes for public access TV, those channels will lose money or be shut out altogether - turning off a channel for free speech.

"These are the kind of details that are going to make it difficult for us to continue the shoestring but effective operation of public access in Grand Rapids," said Laurie Cirivello, executive director of Grand Rapids Community Media Center.

State Senate Majority Leader Ken Sikkema says the bill will definitely undergo changes before it comes to a vote. But, he sees the legislation as necessary to address one of the top complaints his office gets - that cable bills are too high.

"I'm confident that ... as the end of the day it's a win-win, that you have consumer choice and protect public access that's important to people," Sikkema says.

Lawmakers will also take a close look at how this will affect the information network in many cities. In some cases, the cable companies pay for city communications systems, like telephone, email, video communication, and even certain 911 systems. In certain circumstances cable companies could charge cities to use their lines, something that could be very expensive.

Something that makes the debate a little more confusing is that Google and some consumer groups are pushing lawmakers to include language in the bill about the Internet.
They want to prevent companies from creating two tiers of Internet service; they say would block access and squash free speech.