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from: the Telegraph Herald

Cable Franchising Bill Bad for Consumers

Dubuque, Iowa, April 6.

Legislators should question the promise of more competition

A bill moving through the Iowa Legislature offers a promise tempting to lawmakers: Lower cable TV bills and more competition among providers.

If the bill actually could make good on that promise, it would be worth considering. But it can't. Neither lawmakers nor citizens should be taken in.

The bill would allow new companies -- namely Qwest -- to get a franchise from the state, skipping the municipal franchising step altogether. Further, existing providers -- in Dubuque's case, Mediacom -- can dump their franchise agreements in favor of a state-issued franchise with preferential terms.

It would trump the city's existing agreement with Mediacom. That could mean the end of Dubuque's cable access setup and the institutional network serving schools and government. Remember the 15-year deal the city and Mediacom inked two years ago? The one that took three years to hammer out? No more.

However, that is not the biggest problem with this bill. The real concern is that service providers would not be held to any build-out requirement. So, not everybody would get the same service. Residents of lower-income areas could get poorer-quality service than areas where more residents buy premium channels. Small businesses would not be assured of receiving the quality and service offered larger companies. There might be competition among cable providers in some areas. But it wouldn't be for everyone.

This change would take away local control -- something that historically has not been good for consumers. When cable companies were deregulated in 1996, Dubuquers were told it would mean more competition. Au contraire. Since deregulation, local rates have risen at more than twice the national average. Now, lawmakers think the state can set up franchises from Des Moines to Dubuque to Dyersville that would best serve each community's needs? That's far-fetched.

Lawmakers might think they will gain points with voters by passing legislation that could reduce cable rates. Voters should not fall for it. This bill isn't the answer for lower cable rates, and it could do more harm than good.

Editorials reflect the consensus of the Telegraph Herald Editorial Board: Jim Normandin (publisher), Ken Brown, Brian Cooper, Monty Gilles, Amy Gilligan and Sharon Welborn.