TMCnet News
Cable could get cheaper: House approves TV deregulation(News & Observer, The (Raleigh, NC) (KRT) Via Thomson Dialog NewsEdge) Jun. 23--The state House gave overwhelming approval Thursday to a measure that would deregulate television service by allowing companies to start selling cable TV without permission from cities or counties. Supporters of the proposal, which was pushed by telephone companies, said it would break the monopoly held by traditional cable companies and lead to competition and lower prices for customers. "Overwhelmingly, people want a choice," said Rep. Becky Carney, a Charlotte Democrat. "We haven't had a choice for years. The cable market now will be open to a lot of competition and cheaper rates for our customers." Opponents said the measure did not include enough consumer protections, which could result in rural customers and poor people missing out on the benefits while companies focus on winning business in affluent city and suburban neighborhoods. "I'm all for competition," said Rep. Jennifer Weiss, a Cary Democrat, "but we have a responsibility to make sure the consumers in our state benefit from legislation." Critics offered several amendments which they said would strengthen consumer protections and provide additional money for public access channels. All the proposed changes were defeated. The 97-12 vote in favor of the bill was preliminary. The House is expected to take a final vote Monday and send the bill to the Senate, which is considering a similar measure. Under current law, companies that want to offer cable television must negotiate with local governments and pay local franchise fees. The bill would allow companies that sell cable TV service to get state licenses instead. The idea is that telephone companies would compete with established cable television companies for customers. Cable companies pay local governments franchise fees in exchange for being allowed to serve a city or county. The bill would have the state collect a franchise tax and distribute the money to local governments. Attorney General Roy Cooper doesn't like the proposal and warned legislators in a letter this week that they were jumping into the unknown. "This is a new idea that has been tried only a short time in a few communities in a small number of states, so we have no real track record on how it will work," Cooper wrote. If the proposal becomes law, customers in areas where companies are competing would no longer take complaints about bad service to local government cable administrators. They would go to Cooper's office instead. |