Attempt Made Last Year to Take Over Franchises

By David Nivens, High Point Enterprise, N.C.

Jan. 4–TRIAD — Congress attempted to take over local telecommunications franchises last year, but no legislation was approved.

The leading bill was COPE (Communications Opportunity, Promotion and Enhancement Act). It also would have cut back the obligation of cable TV companies to devote channels to public access.

The Federal Communications Commission approved rules last month cutting approval times for new state and local telecommunications franchises to 90 days.

The National Association of Counties and the National League of Cities joined forces in a Dec. 12 letter to protest the decision, claiming it strips local governments of franchising powers without congressionalapproval. By a 3-2 vote along party lines, the commission adopted the controversial measure that also eliminates an old policy requiring new franchise companies to provide serviceto all residents in an area.

Critics said the measure would allow the new companies to “cherry-pick” neighborhoods, providing service in affluent neighborhoods while ignoring rural areas, said David Harris, a telecommunications expert for the Piedmont Triad Council of Governments.

The local government lobby groups also claim that the regulation sets an illegal deadline and local governments would lose money if they had to pay for Internet and video services they get as part of franchise agreements

dnivens@hpe.com|888-3540

—–

Copyright (c) 2007, High Point Enterprise, N.C.

Distributed by McClatchy-Tribune Business News.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.