Getting cheaper and better cable services to consumers has been difficult because the laws governing the sector have proved tough to change. This week, officials in two states announced key decisions that may significantly change the terms of the debate. Both announcements involve cable franchise reform.
That’s the issue that’s been frustrating telecom companies and threatening control freaks in local governments around the country. It involves how to make it easier for telephone and other broadband providers to enter the cable market and compete with the cable companies. In most states, cities grant exclusive rights to a cable area to one company. For this privilege, cable companies have traditionally had to shell out to local officials loads of unrelated goodies such as parking lots, recreation centers, and pools. It is understandable that local officials might not want to give up this power, but the time has come for regulators to allow consumers to benefit from new technologies like Internet protocol TV (IPTV).
That can’t happen until the telcos and others have an easier time getting into the marketplace. Congress has noticed this problem and is starting to work, but in the meantime some smart officials in Oklahoma and Connecticut have swung into action.
Read more here.