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from: CNN Money

FCC Extends Video Franchise Reform To Cable Companies
Dow Jones
October 31, 2007: 10:46 AM EST

WASHINGTON -(Dow Jones)- The Federal Communications Commission Wednesday extended reforms to cable companies related to the process of winning franchises from local governments that it had granted to phone companies earlier in the year.

The decision by the agency is aimed at streamlining the process by which cable companies renew licenses granted to them by city, town and county governments across the country.

These licenses are required to offer service in every area in which they operate.

The reforms had been initially granted to phone companies like Verizon Communications Inc. (VZ) and AT&T Inc. (T) in a bid to facilitate their entry into the video market. But cable companies Comcast Corp. (CMCSA, CMCSK) and Time Warner Cable Inc. (TWC), as well as some of the Republican members of the panel, had argued that the rules left them at a competitive disadvantage.

The rules for phone companies have been challenged by local governments around the country which have argued they infringe on their jurisdiction. It is likely the cable rules may face a similar challenge.

-By Corey Boles, Dow Jones Newswires; 202-862-6637