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Cable Industry Mobilizes to Oppose Telecom Proposals That Will Discriminate Against Some Consumers

After years of enjoying a government-protected monopoly and building huge networks on the backs of captive ratepayers, large telephone companies have finally "discovered" something the cable industry recognized years ago: that consumers are looking for convenient and integrated video, data and telephone services.

But, unlike cable companies, the telecoms aren't willing to make the significant investments necessary to offer these services unless they can hedge their bets. So they are pushing a bill in Congress that essentially allows them to bypass local officials and self-define the "franchise area" in which they will offer their new video services. This will allow them to cherry-pick the most lucrative markets and "redline" or avoid more modest neighborhoods.

If the telecoms succeed in their scheme, only some consumers would enjoy the benefits of upgraded services and more competition. The cable industry, which has worked closely with local officials for years, is standing up for all consumers by defending the rights of local communities to require the telecoms serve everyone, the same standard the cable industry has successfully met for years.

In short, we are working to ensure that service areas for all video providers are set based on what's best for the public, rather than what's best for the provider.

To learn more about this issue, read a recent editorial published in the Puget Sound Business Journal. Also refer to the Q&A section on industry issues or resources and references.