» American Lawmakers Vote to Ease Cable Franchising for Telecom CarriersTelecommunications Industry News

Telecom News Editorials Reports Glossary

American Lawmakers Vote to Ease Cable Franchising for Telecom Carriers

6:45 am on June 10, 2006 | Category: Business, Regulation, Telecom Services, Telephone, Television

The U.S. House of Representatives has approved a new bill making it easier for telephone carriers to offer television and video service, by eliminating the need to seek local cable franchises in each city.

If this bill is passed by the Senate, telecom providers will be able to apply directly to the FCC for the right to offer fiber optic IPTV service, rather than being forced to negotiate endlessly with each municipality that they hope to serve.

The legislation passed by a landslide 321-to-101 vote in the House, but most analysts believe that the Senate will be something of a harder sell.

“We think it’s going to be a problem getting it out of the Senate. It’s certainly possible, but we think it’s more likely going to be tied up there,” said analyst, Blair Levin, of Stifel Nicolaus & Co.

Lobbyists from municipalities around the U.S., as well as from the big cable giants, will be working hard to stop passage of the legislation, while most â€œnet neutralityâ€ advocates would like to see it delayed until stronger rules are made to stop telecom carriers from creating a two-tiered internet.

Telecommunications Industry News