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South Carolina joins a number of other states where the telcos have won statewide franchises

from:Technology Daily

South Carolina Approves Bill For Statewide Video Franchises

By Michael Martinez

(Revised Wednesday, May 17) The South Carolina Legislature has cleared a measure to overhaul the state's video franchising rules.

The state House Tuesday approved minor amendments to a measure, H. 4428, which would let entrants to the video market obtain statewide franchises from the South Carolina secretary of state.

The proposal cleared the Senate last week, and will be sent to the governor's office for final authorization after it is formally ratified Thursday.

Under the bill, local regulators would lose their authority over franchising and their direct oversight on consumer disputes. The proposal also would not require video services market entrants to provide service in low-income or rural areas.

According to the text of the legislation, a "streamlined policy framework providing statewide uniformity" is necessary to ensure that consumers receive competitive services in a timely manner. That view is shared by the former regional Bell operating companies, who contend that existing franchise rules have slowed their entry into the market.

Legislation similar to the South Carolina measure has been enacted during the past year in Indiana, Kansas, Texas and Virginia.

However, in contrast, to several other states, the South Carolina legislation is embraced by both the Bells and their rivals in the cable TV industry.

Nancy Harris, president of the South Carolina Cable Television Association, said she supports the proposal because it would allow dominant cable providers to opt out of their existing agreements with localities and operate under the new, statewide rules.

"We worked very hard with the leadership of both the state Senate and state House to make sure that no one got a leg up," she said. "Of all the people that need help, I'm not sure that the regional Bell operators are the ones that do."

But Howard Duvall, the executive director of the Municipal Association of South Carolina, contended that such provisions in the legislation are unconstitutional because they would let allow cable companies to break their contracts with municipalities.

"We think that's something that could be challenged if there is any reason to challenge the law. ... There's some good case law on our side to support that," he said.

Duvall further objected to language that would direct consumer complaints to the state Consumer Affairs Department, which he said has "little or not" authority to settle them. He also said the bill's anti-discrimination language is not strong enough to prevent video providers from "cherry-picking" by only offering service in wealthier neighborhoods.

"I don't think this is going to help the consumer," he said.

There was also action in two other states this week relating to the video franchise issue.

The Louisiana House Monday also approved a measure to streamline video franchising rules. The bill, H.B. 699, would allow companies offering video services to bypass municipal regulators by obtaining statewide franchises.

The measure cleared the House by a 73-26 vote, and it was read for the first time on the Senate floor Tuesday.

And a similar bill advanced in New Jersey Monday, where the state Senate Economic Growth Committee amended its version of a statewide video franchising measure to mirror legislation passed by a House panel last week.

The proposal, S. 192, could come up for a full Senate vote later this week.