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Home > BizTimes Daily > Archives > December 21, 2007
Doyle signs 'cable competition bill'
Published December 21, 2007 - BizTimes Daily
Doyle Wisconsin Gov. Jim Doyle today signed the "cable competition bill," which opens the door for AT&T Inc. and other entities to bypass having to negotiate contracts with local communities when they seek to provide video content that will compete with cable television.
Instead, the bill grants statewide licenses to video content providers.
Assembly bill 207 law streamlines the cable franchise process by creating a statewide video service franchise process through the Department of Financial Institutions. The statewide franchise will replace the current process where individual municipalities grant cable franchises in Wisconsin. Existing municipal cable franchises will be phased out.
Doyle said he preserved protections for cable customers through several vetoes.
"By opening the door to cable competition in Wisconsin, we should see expanded services to consumers and more investments in communications technologies and infrastructure in the state," Doyle said. "And while we are opening the door to competition, people can also be assured that Wisconsin's strong consumer protection laws will continue to cover them when it comes to issues like billing errors and service interruptions."
Doyle said he vetoed language from the bill that limited consumer protections and prohibited state agencies from drafting administrative rules regarding the new franchise application and revocation process.
Under the new law, video service providers will still pay a fee to municipalities set at no more than 5 percent of the company's gross receipts and public, educational and government (PEG) channels will continue to broadcast, Doyle said.
The new law clears the way for AT&T to launch its U-Verse video programming statewide.
The bill, which presumably ends a public relations flap between AT&T and cable providers such as Time Warner Cable, had plenty of critics, who said municipalities will lose control of local programming. Critics also said providers such as AT&T will be able to pick and chose the areas they serve, and they will be inclined to ignore rural areas or impoverished neighborhoods.
Mark Miller (D-Monona) said, "I would have preferred a veto of the entire bill, but I am pleased Gov. Doyle vetoed the worst parts of the bill, particularly the 'in perpetuity' language that would have granted a video franchise forever. The governor's vetoes improve consumer protection and provide for more industry accountability. I remain very concerned about the continued viability of local public access programming. However, the vetoes provide a window of opportunity to address these issues in the next legislative session."
Scott VanderSanden, president of AT&T, released the following statement: “Gov. Jim Doyle's signing of AB-207 launches a new era of video choice in Wisconsin, bringing the important benefits of competition to consumers and workers. Real video competition provides consumers with real choices, better prices, improved service and new products - as demonstrated by competition for other telecom services. In addition to creating a new, state process for video franchising, the final bill improves consumer protections, formalizes revenue sharing arrangements with local governments, retains municipal control over rights-of-way and preserves PEG channels. The bill, first introduced by 43 co-sponsors, received strong bipartisan support along the way, with the combined Assembly and Senate voting, 91-39, and the two utilities committees voting, 16-1, in favor. Numerous community groups, businesses organizations and labor unions supported the bill, including the Communications Workers of America and the International Brotherhood of Electrical Workers. The people of Wisconsin have shown solid support for the bill because they support competition and the benefits it will bring to residents, workers and businesses."
For ongoing coverage, visit www.wispolitics.com, a media partner of Small Business Times.
