State Wide TV Franchising Not Living Up To Lobbyists' Promises

from the lobbyists-inaccurate? dept

I'll be the first to admit that I actually agreed with the stance of telcos a few years back that local "franchising" rules were a problem. If you don't know, for a long time, if you wanted to offer cable-based television in a market, you had to get a "franchise" agreement from a local (town/city/region) authority. For many years, this meant a single cable company offering service with absolutely no competition. When the telcos came along with plans to offer television over fiber or DSL lines, they realized (accurately) that having to get approval in every tiny region would be cost prohibitive. This was all absolutely true, and it was also true that it was silly and unproductive for telcos to have to get so many different approvals and abide by so many different rules just to finally give the cable companies some serious competition in markets.

The telcos were successful in making their case, but, of course, these things never happen without a catch. Various states wiped out local franchises, and put in state-wide franchises... but, in doing so, the telcos were often able to dictate the terms of the state-wide franchise rights, making them quite friendly to the telcos, but not so friendly to others or to actual consumers. Apparently, states are now realizing that the promises given to them by telco lobbyists haven't been shown to be true. The insistence that statewide franchising would lead to lower prices for TV service, for example, hasn't been validated at all.

I recently got to hear first hand how the statewide franchise law in California is leading to serious problems for some really amazing local municipal and school networks, which will now get shut down, since the statewide law doesn't require it, as the local franchise rule did. I'm not convinced that the answer is to return to local franchising, which still seems like a process that is too convoluted for innovation. Perhaps the real answer is that none of this will matter eventually, once television all runs through your browser, anyway...

Filed Under: franchising, lobbying, telcos, video