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Nashville Business Journal

Competitive cable TV bill introduced

Nashville Business Journal - 3:57 PM CST Thursday, February 15, 2007

Legislation dealing with competition in the cable industry in Tennessee was introduced into the state's general assembly today.

"The Competitive Cable and Video Services Act" would grant a statewide franchise to companies competing with established cable television providers.

Sponsors of the Senate bill (SB 1933) are Bill Ketron, R-Murfreesboro, and Doug Jackson D-Dickson. The House bill (HB 1421) is sponsored by Sparta Democrat Charles Curtiss and Steve McDaniel, R-Parkers Crossroads.

"There are 11 states that have streamlined their video franchise process to assist the entry of new video competitors, and the residents of those states and saving money and benefiting from competition," said Curtiss in a release. "We stand here today to continue the fight and bring these same things to Tennesseans."

Bill sponsors say it will provide more consumer choice and control and better prices and service. States that have passed similar legislation include North Carolina, South Carolina, California and Texas.

"Our view of the bill is that this is really a special pass for AT&T to save millions of dollars and that essentially they're wanting to change the rules to suit themselves and to pick their own customers," says Stacey Briggs, executive director of the Tennessee Cable Telecommunications Association.

Groups supporting the bill include AT&T, CenturyTel, Knology, Verizon, the Tennessee Telecommunications Association and the Communications Workers of America.

"It's about fair competition," said TTA Executive Director Larry Drake. "We believe customers in the state of Tennessee deserve a choice in cable television providers. And the best way to provide that is for companies wishing to provide Cable TV services to be able to apply for a statewide franchise as opposed to a franchise from each individual local community."

Under current rules, companies negotiate with counties and incorporated cities to provide services in those areas, and they then must provide service cable to everyone, as long as there are 10 homes within a given mile, says TCTA Executive Director Stacy Briggs. This bill would let the companies determine their service areas, which could exclude large parts of communities, she says.

"There's a process for them to come in through the front door," says Briggs, "but they haven't done it." Now they're looking for a short cut "through the back door," she says.

TCTA represents cable providers and their 1.3 million customers before the general assembly.

The Tennessee Municipal League also opposes the bill. In a statement released by the organization today, it said:

"The legislation proposes to eliminate the process by which local governments establish and enforce requirements that protect our citizens and ensure that all residents are assured access to cable or video services. In fact, the bill expressly prohibits the state and local governments from enacting any consumer quality and service standards or requiring that all neighborhoods in a municipality are served."

TML opposition includes the City of Memphis, Metropolitan Government of Nashville/Davidson County, City of Knoxville, City of Chattanooga and other municipal governments in Tennessee.