PLI Conference Notes...

The video franchising proposal set for the Dec. 20 FCC agenda meeting is a top priority for FCC Chmn. Martin, he told a Thurs. Practising Law Institute Telecommunications Policy & Regulation conference. The proposal, which would make it easier for wireline entrants to provide video service like cable’s, deals directly with the “continual increase in cable prices,” Martin said. Other communications service prices have dropped, but there’s been an “almost 100% rise in cable prices” since 1996,” he told the group, calling the only brake on cable price rises competition from “wireline overbuilders.” Entry by more facilities-based video providers is “critical for broadband” buildout as well, he said. Delay caused by franchising authorities inhibits broadband infrastructure development, Martin told the group. Martin, who spoke in a “conversation” with communications attorney Richard Wiley, indicated he isn’t sure how parts of the franchising order will come out. “I hope we will be able to work through the issues,” he said. In answer to our post- session question, Martin said he never knows exactly how orders will play out in the week before an agenda meeting. But the bottom line is that he’s not concerned about the order passing, he said. But sources said the franchising item may be delayed to work out contentious issues. Some say there isn’t time to deal with both the franchising order and the AT&T-BellSouth merger right now. The franchising item probably will be pulled from the agenda, said a Commission official and industry sources. Among issues that may take require more consideration is the draft order’s provision that telcos don’t need to build out video systems to areas of towns they don’t already serve, we're told. An agency official said: “If it stays on the agenda this is going to be one of those where everyone stays here until 5 a.m. [on the morning of the meeting] haggling over the language.” -- EH, JM