Last week the FCC offered a ruling that changes the way cable franchises are offered to new entrants and throws the ball into the court of the States.
Currently if a cable company desires to offer services in a particular city, said cable company has to agree to serve the entire city. Phone companies have said that this rule limits the ability for competition to come in to a city. The FCC apparently narrowly agrees with phone companies. The new ruling would allow new entrants to service certain areas within a city, without servicing the entire city. This could lead to disparity of resources within a city.
Previously cities also regularly were able to negotiate for public access channels (like SPNN) and services for schools. Under the new ruling cities would be limited to the 5% franchise fee from new entrants into the cable TV market. Currently cities can use the 5% franchise fee to offset the general budget or put it directly into access centers. Some cities not only receive the 5% franchise fee, but also an additional PEG fee that goes directly to support public, education, and government access centers. Withholding this funding would be a determinant to access centers.
The ball moves to the state’s court. The FCC has stated that states creating their own cable TV franchising agencies to take over the work from cities or counties will be exempt from the rule changes.
I talked with State Rep. Sheldon Johnson (St. Paul) for January’s All Things Access episode about the upcoming legislative session. Rep. Johnson is the chair of the House Telecom Regulation/Infrastructure Division committee. Johnson has already been approached both by telecom companies and cable companies to discuss the impacts of a state bill on telecom and franchising. It appears that this year the fight will not only be in congress, but at the state level as well.
It appears the FCC rulings may be challenged in court and it appears Congress my also revive legislation stalled this past year. Between court challenges, Congress, and the state legislature it seems we will have a busy year.
To read the entire article from the Star and Tribune go to http://www.startribune.com/535/story/889084.html
To read the article from the New York Times go to http://www.nytimes.com/cnet/CNET_2100-1036_3-6145184.html?_r=1&oref=slogin
