IP Democracy: Virginia Franchising Bill Passes

A bill that sets state-wide franchising standards in Virginia was approved yesterday by the House of Delegates following its passage by the Senate. Unlike a comparable state-wide franchising bill passed in Texas, the Virginia legislation isn’t technically a state-wide franchise; instead it guarantees franchise rights to video entrants if they meet certain obligations.

New video entrants can decided to go through traditional franchising negotiations, but if after 45 days those talks don’t bear fruit, can opt for a “ordinance” franchise. Under that latter option, the video entrant can enter the market within 75 days if it agrees to certain build-out and fee and channel commitments and the muncipality must accept the entrant.

The final version of the legislation represented a compromise between dueling cable and telco interests — cable companies are happy about the obligations imposed on the entrant, including 100% build-out requirements, while phone companies are seemingly happy with the fast-track franchising process.

The bill has been sent to Governor Tim Kaine for his signature, and if he signs (which seems a certainty), the legislation will take effect July 1.

Update: Cable clearly likes the bill. NCTA President Kyle McSlarrow said in a statement issued this afternoon

The Virginia legislation is a step in the right direction. While it’s not perfect, we’re pleased the legislation recognizes the importance of localism, treats all providers fairly by maintaining a level playing field, and facilitates speedy competitive entry in a way that benefits communities, service providers, and all those we serve.

Posted by Cynthia Brumfield on February 28, 2006 2:54 PM to IP Democracy