Franchising Reform Can Open New Markets, Boost Competition
ASPEN, Colo. -- Lawmakers shouldn’t necessarily legislate to speed transition to ubiquitous digital TV in the U.S., if industry addresses the issues thoughtfully, Rep. Blackburn (R-Tenn.) said Tues. “We all play a role in educating people about the impact of the transition,” she told the Progress & Freedom Foundation policy summit here.
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The vocal House Commerce Committee member said “when you protect content, you are protecting a purchase.” That’s important to voters, especially in her district, home to the country music capital and countless songwriters whose works need to be protected, Blackburn said. “Congress will want to help cut the red tape that the American public faces because the telecom laws and regulations need updating,” she said, predicting a busy session when Congress resumes in Sept.
Distributing content is important, too -- and reforming the franchising process is crucial to opening more outlets for content distribution, she said. That’s why Blackburn and Rep. Wynn (D-Md.) introduced the Video Choice Act (HR-3146) before summer recess. It’s aimed at cutting red tape new entrants to the video market “must try and untangle themselves,” she said. The bill covers everything from laying fiber to offering new services and “strikes a reasonable balance between the need to promote competition in the video TV market and the needs of a municipality to govern their rights of way,” she said. Sen. Smith (R-Ore.) introduced a companion bill in the Senate (S-1349) in late June.
Under HR-3146, competitors would face the same franchise fees incumbent cable operators pay. They also would have to carry the same govt. and education channels. Now, franchise laws stifle competition and prevent new video technologies from emerging, Blackburn said, noting that her constituents want more choices than a cable provider, satellite or TV rabbit ears. “Our telecommunications services are rapidly changing and expanding. Congress can and should act to ensure our laws aren’t standing in the way of innovation and competition,” she said: “Our marketplace will embrace this change. And I know consumers will love it.”
The cable industry hasn’t embraced the bill, Blackburn admitted, but she said those companies also are entering new markets and providing new services. “You don’t have to look very far to find companies that want to offer video service who are being held up by the current franchise process,” Blackburn said. Capitol Hill shouldn’t be stifling innovation and choice, she said: “Our government should set the environment and get out of the way.” Once that happens, Blackburn envisions a ripple effect leading to more competition, lower costs to customers and job growth.
Meanwhile, though some in Congress want to expand USF to include broadband, Blackburn said she wants to kill the fund. “Why tweak around the edges? Let’s start with a clean sheet of white paper and say, ‘Where do we go from here?,” she said. Lawmakers should USF’s past purpose and whether it has been fulfilled, Blackburn said. She also said DTV legislation should get through her committee by Sept. 16: “How quickly we move on the Telecom Act depends on how quickly we move through DTV.” She said she wouldn’t be surprised if her panel “got into heart of the issue before we end this first session.” Local govts. want finality and certainty -- and so do state legislatures, she added.