The Associated Press reports that the Virginia Senate and House both passed bills today that would allow telephone companies to more quickly enter the video market.
The cable and telecom industries were unable to reach a compromise on opposing bills each had backed. So state lawmakers drafted a compromise measure last month in the hopes that opening the market to competition will lower prices.
The new bills would give localities the ability to demand that new TV entrants offer services to 65 percent of eligible residents in their franchise areas within seven years. After that, localities could force Verizon and other new competitors to hit 80 percent in 10 years.
New TV entrants would be able to get into markets within 75 days under the proposed state framework…The new TV rivals could negotiate better deals with localities, but localities must offer cable companies the same terms as the newcomers.
According to the AP, the Senate vote was 37-1, with the House voting 85-12, in both cases, with no debate.
Though it apparently didn’t get everything it wanted in the bill, a Verizon press release suggested the company was pleased enough with the bill, attributing the following comment to Robert W. Woltz Jr., president of Verizon Virginia:
This legislation - when it becomes law - will enable companies like Verizon to invest in our network with the full confidence that we can quickly turn that investment into products consumers can buy and love…We applaud Delegates Terry Kilgore and Morgan Griffth, and Sens. Kenneth Stolle and Walter Stosch, along with gubernatorial advisor Mark Rubin, for their efforts in forging a tough compromise between cable incumbents and new entrants like Verizon. They have struck the necessary balance that benefits consumers, encourages competitors and retains an appropriate amount of local control over rights of way and service.
Mitch Shapiro at 8:58 PM|Comments(0)
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