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FCC Order Opens Door to More Cable, Broadband Service TMCnet Web Editor In a move that could accelerate the growth of both cable franchises and broadband networks, the Federal Communications Commission has issued an order that would essentially overhaul the outdated processes now used to grant new franchises.
The order, stated on the FCC’s (News - Alert) website, expects to address the increasing overlap between traditional telephony and cable companies, as both seek to offer triple-play voice, high-speed Internet access, and video services over their networks. By loosening some of the franchising hurdles, the FCC hopes the competition for bundled services benefits the consumer by driving down prices and improving the quality of service
 offerings.Under the order, the FCC is adopting rules that prohibit local franchising authorities from prolonging the process used to award cable franchises. The FCC is establishing a 90-day period for local franchise authorities to decide on a competitive applicant’s franchise application, where the already has rights-of-way access, and six months where that access does not yet exist.
The FCC noted in the order that current franchising procedures can take as much as 8 to 16 months, even when applicants have right-of-way access already. Often, entrants accept franchise terms they consider unreasonable to avoid further delay, or give up altogether.
Some states, notably Texas, Indiana, Kansas, South Carolina, New Jersey, North Carolina, and California, have already passed legislation to streamline franchising procedures for new cable entrants, the FCC noted, and the Commission hopes to drive all states to ease cable franchising procedures.
The FCC said that markets with existing cable competition give customers lower cost choices. More important, the Commission said streamlining cable franchising procedures would expedite the deployment of additional broadband services, helping customers in underserved regions.
The FCC’s order was applauded by several industry groups, such as the Fiber-to-the-Home (FTTH) council.
“We enthusiastically support the FCC’s effort to fix the outdated and anti-competitive video franchising process,” said Joe Savage, president. “This order will help speed up the process of bringing the consumer more choice, lower rates, and access to much higher-speed broadband networks.”
Verizon (News - Alert), too, applauded the move. The company has been moving aggressively to expand its triple-play Verizon FIOS service.
"This decision removes obstacles to the continued aggressive rollout of our all-fiber-optic network and our FiOS TV service,” said Marilyn O'Connell, chief marketing officer of Verizon Telecom, in a statement. “It means that we will be able to reach our goal of rapidly expanding the number of consumers who have a choice of video service providers. It would be difficult to invest so much into broadband and video deployment without common-sense decisions like this one.”
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