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frm: Blog for Iowa

Help Fight Public Help for Cable TV Companies

By Mike Brau

As you may have read, the Iowa Senate recently passed SF 544 which would change how communities franchise cable TV providers. Under the proposed law new entrants, specifically Qwest, would be given an opportunity to by-pass the municipal franchising process and receive a franchise from the state under preferential terms. Many of the community benefits negotiated by municipalities on behalf of their citizens would likely be lost as the bill contains a provision that if a competitor gives notice they intend to seek a state franchise that the incumbent cable operator can cancel their existing franchise and receive a state-issued franchise. The House Commerce Committee will likely be taking up the bill the week of April 1. Now is the time to contact Commerce Committee members.

Below are a few talking points and the email address of Committee members. Please take a few minutes to pick a couple of points and draft an email your own words and send it to Committee members. Phone calls can be placed to the House switch board number below.

Overview of the State TV Franchising Legislation, SF 554

SF554 gives special treatment to Qwest and others who wish to get into the cable business. Qwest does not need special incentives to compete. A franchise with the same terms as those with Mediacom or other cable company could be negotiated as easily as crossing out one company name and inserting another.

SF 554 allows Qwest and other new entrants to pick and choose which neighborhoods they serve. Some neighborhoods could receive the benefit of competition while others would not.

SF 554 allows incumbent cable operators to opt out of their existing franchise agreement upon notice of intent of Qwest or other new competitors to provide service. Benefits for the community negotiated in that contract such as free video and Internet service for schools, libraries, and cities, local access to emergency alert systems, and video production services for city council meetings would likely vanish.

SF 554 undercuts existing commitments to local community public, educational, and government channels by limiting financial support from Qwest and other new entrants. Capital and operational fees would be required only through the remaining term of the incumbent cable operator’s franchise and likely be totally eliminated if the incumbent cable operator opts for a state-issued franchise.

SF 554 eliminates local input from the franchising process and substitutes a one-size fits all approach. Local community needs and interests would no longer be considered in granting the right to make us of the public’s right-of-way.

SF 554 limits local government’s ability to provide any meaningful consumer protection. Consumer protection would be enforced through an “informal” and “non-binding” process.

SF 554 proponents claim this bill will bring price competition and a reduction in rates. Evidence from around the country where telephone companies offer video service is mixed show their assertions is over-stated. Most communities see no rate reduction and only in rare circumstances do rate reductions exceed 10%. In fact, the CEO of ATT told Wall Street “I don’t think there’s going to be a price war. I think it’s going to be a war of value and of services.”

House Switch Board
(515) 281-3221

Janet Petersen (D, District 64), Chair
Janet.Petersen@legis.state.ia.us

David Jacoby (D, District 30), Vice Chair
David.Jacoby@legis.state.ia.us

Chuck Soderberg (R, District 3), Ranking Member
Chuck.Soderberg@legis.state.ia.us

McKinley Bailey (D, District 9)
Mckinley.Bailey@legis.state.ia.us

Deborah Berry (D, District 22)
Deborah.Berry@legis.state.ia.us

Dan Clute (R, District 59)
Dan.Clute@legis.state.ia.us

Clarence Hoffman (R, District 55)
Clarence.Hoffman@legis.state.ia.us

Libby Jacobs (R, District 60)
Libby.Jacobs@legis.state.ia.us

Doris Kelley (D, District 20)
Doris.Kelley@legis.state.ia.us

Bob Kressig (D, District 19)
Bob.Kressig@legis.state.ia.us

Steven Lukan (R, District 32)
Steven.Lukan@legis.state.ia.us

Jo Oldson (D, District 61)
Jo.Oldson@legis.state.ia.us

Kraig Paulsen (R, District 35)
Kraig.Paulsen@legis.state.ia.us

Dawn Pettengill (D, District 39)
Dawn.Pettengill@legis.state.ia.us

Brian Quirk (D, District 15)
Brian.Quirk@legis.state.ia.us

Nathan Reichert (D, District 80)
Nathan.Reichert@legis.state.ia.us

Tom Sands (R, District 87)
Tom.Sands@legis.state.ia.us

Paul Shomshor (D, District 100)
Paul.Shomshor@legis.state.ia.us

Doug Struyk (R, District 99)
Doug.Struyk@legis.state.ia.us

Dick Taylor (D, District 33)
Dick.Taylor@legis.state.ia.us

Linda Upmeyer (R, District 12)
Linda.Upmeyer@legis.state.ia.us

Jamie Van Fossen (R, District 81)
Jamie.Van.Fossen@legis.state.ia.us

Philip L. Wise (D, District 92)
Philip.Wise@legis.state.ia.us