July 1, 2005

CNET Describes TV Legislation

This issue will be a VERY BIG deal as it heats up in Congress and the states. The competitive battle between cable and telco providers has big bucks at stake in terms of franchise fees. These franchise fees at the municipal level in most of the country are significant revenue sources and the opportunity to extract them from both companies will be attractive to local governments fueling a contentious debate. Further, the notion of preemption by the Feds will get the attention of everyone.

In Vermont, the Public Service Board has historically retained franchising authority and regulatory oversight of cable TV. That's a good thing in a small, rural state like ours. If companies had to negotiate agreements with every municipality that would be a nightmare.

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