FCC Fast-Tracks Telco TV
By a 3-2 vote, the Federal Communications Commission's Republican majority voted yesterday to supplant local regulation of television delivery services with their own rules. The move is expected to speed the entry of Verizon, AT&T, and other telcos into the turf of cable and satellite providers. Congress had been about to enact legislation with new video franchising rules until the regime change of the November elections. Now Democrats like Reps. Ed Markey (D-MA, new chair of the House Subcommittee on Telecommunications and the Internet) and John Dingell (D-MI, new chair of the House Energy and Commerce Committee) are pledging to take a close look at the FCC action in 2007. Along with the U.S. Conference of Mayors, other local-government associations, and various media watchdogs, they question whether the FCC had the statutory authority to change the rules. FCC chair Kevin Martin says telco TV will increase competition and lower rates for consumers, pointing to his agency's 2005 study on cable rates, which showed they had increased 93 percent over the previous decade. Not so, says Harold Feld of the Media Access Project: "The other guy just gradually raises his price...rather than having the higher price come down to the competitor's level." Overshadowing the cost issue is the equal-access issue: Can the telcos be counted on to "build out" to every home in a community under the new rules, as the old framework of local franchising and regulation had required them to do? The telcos have their own good cop, bad cop routine going on this subject. There's your hot topic for the New Year.
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