[opendtv] News: Ensign Intros Franchise-Buster Bill

http://www.broadcastingcable.com/article/CA630147.html?display=Breaking+News&referral=SUPP
 


Ensign Intros Franchise-Buster Bill

By Bill McConnell -- Broadcasting & Cable, 7/27/2005 2:10:00 PM


Sen. John Ensign Wednesday introduced sweeping and controversial 
legislation that would eliminate the need for cable, telephone 
company, or any other pay-TV provider to obtain local or state 
franchises.


Existing cable franchises also would be eliminated under his bill, 
which he said is designed to "update the nation's telecommunications 
laws and increase choices for consumers."

Ensign unveiled his Broadband Consumer Choice Act of 2005 at a 
Capitol Hill press conference. "It is time to restore America's 
status as a leader in the field of global communication technology 
and to improve burdensome and outdated government regulations for the 
benefit of consumers nationwide," Ensign said. "Americans' ingenuity 
and creativity can provide more choices for consumers if government 
bureaucrats will get out of the way and allow our companies to 
compete."

Ensign's bill also contains federal consumer protection standards and 
ensures local governments' right to franchise fees up to 5% of gross 
video revenues.

Current requirements for video providers to carry public access 
channels and carry local broadcasters' signals would be maintained as 
well. Also, all video content controlled by a vertically integrated 
pay-TV distributor would be made available to other distributors "on 
fair and equal terms." Exclusive contracts for sports programming 
would be prohibited, regardless of whether programming rights are 
controlled by a vertically integrated distributor. 
 
His bill is aimed at accelerating telephone companies' entry into the 
video business without drawing opposition from the cable industry. 
Phone companies are trying to eliminate the need to apply for more 
than 30,000 local franchises to begin offering TV service nationwide 
and are seeking either national or statewide TV franchises. The cable 
industry, however, has vowed to block any relief for phone companies 
that does not also apply to existing operators.

The legislation was enthusiastically endorsed by the National Cable & 
Telecommunications Association, the U.S. Telecom Association, and the 
Consumer Electronics Association. 

Consumers Union and Common Cause oppose Ensign's bill. The National 
League of Cities hasn't yet taken a position on the bill, but 
generally opposes attempts to roll back municipal governments' 
franchising authority.

Sens. Jay Rockefeller and Gordon Smith have introduced competing 
legislation that cable opposes because it gives any phone company 
currently operating the right to add video without obtaining an 
additional franchise.


 
 
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