Two Senate Commerce Committee leaders, Conrad Burns (R-MT) and Daniel Inouye (D-HI) issued yesterday what they call “guiding principles” for federal legislation on the issue of cable franchising. In an obvious bid to thwart the telcos’ push for nationwide or state-wide video franchise laws, the Senators said that local governments are crucial to the franchsing process and that any future legislation must embrace these principles.
The principles are:
1. Establish beyond doubt the prominent role of states and localities in the video franchising process.
2. Facilitate competition by promoting speedy entry on mutually favorable terms.
3. Promote fairness for both consumers and localities on a level playing field for providers.
In his statement Senator Burns said that franchises are important because they enable cities to manage their local rights of way and collect franchise fees.
While maintaining franchises is important, the “principles” seem to give some leeway to the telcos, who have argued that the local franchising process hinders their entry into the video marketplace. The second principle advocates “speedy entry on mutually favorable terms,” an idea that seems to suggest some kind of expedited franchising process. (Maybe akin to the cable industry’s suggested “shot clock.”)
The cable industry, needless to say, is delighted with the new principles. National Cable & Telecommunications CEO Kyle McSlarrow said in a statement
We applaud the leadership of Senators Burns and Inouye for their release of principles that support video franchising legislation which emphasizes the importance of localism. These principles strike an appropriate balance between the desire to speed entry for new providers and ensure a level playing field for all competitors.
Cynthia Brumfield at 9:30 AM|Comments(0)
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