What They're Saying

Cable TV licensing bill comes under fire
By Dan Ring, The Republican Newsroom | June 5, 2007

BOSTON - Municipal leaders and cable companies today squared off against a bill backed by Verizon Communications Inc. that would allow the state to award licenses for cable television.

The bill, aired today by the Committee on Telecommunications, Utilities and Energy, drew about 500 people to a Statehouse auditorium.

Currently, cities and towns control the process for issuing cable licenses.

"Municipalities ... have negotiated in good faith to establish franchising agreements that benefit cable providers, consumers and community interests," said Northampton Mayor Mary Clare Higgins, who was among many municipal officials to testify against the bill. "There is no evidence that the current process contributes to delays, abuse or barriers to competition. This legislation is not in the public interest."

Higgins and other municipal officials said that if the state assumes regulatory oversight, it could lead to fewer requirements for cable providers to spend on local programs and could allow Verizon or other companies to service only the most profitable areas of cities and towns.

Under the bill, rather than seeking agreements from each community they enter, video providers would be able to secure permission from state regulators to more quickly build networks and move into new areas.

In the face of strong opposition, Sen. Steven C. Panagiotakos, D-Lowell, today asked legislators to create a task force to study the bill. He is principal sponsor of the legislation, called the Massachusetts Cable Choice and Competition Act.

John J. Bonomo, a spokesman for Verizon, said it currently takes too long to obtain a cable television license from a community. The average time is 15 months and some take two years, he said.

Bonomo said the current process benefits cable companies. Most communities in Massachusetts are served by only one cable company. Comcast is the largest cable provider in the state, serving 238 cities and towns.

Verizon officials told legislators that the bill would provide more choices for consumers, more competition and more investment in broadband.

Under the bill, companies would apply to the state for a cable license for a specific geographic area and the state would have to grant the license within 15 days.

The bill also contains provisions to prevent companies from "cherry picking" certain areas in communities for service. Municipalities would also retain the right to set local franchise fees up to a maximum of 5 percent of gross revenues from cable service.

"This legislation will bring competition to consumers faster while continuing to provide communities with significant local benefits and control," Donna C. Cupelo, president for Verizon in Massachusetts and Rhode Island, told legislators.

But Paul R. Cianelli, president of the New England Cable & Telecommunications Association Inc. in Braintree and Hartford, said the bill "is nothing more than a Verizon special deal bill."

Massachusetts is already a national leader in fostering competition in the cable industry, he said. RCN, municipal electric companies and Verizon all have obtained licenses in certain communities to compete with cable companies, he said.

About 400,000 households in Massachusetts also have satellite systems.

"The bill is unnecessary, contrary to the interests of consumers and municipalities, and weighted in favor of a single company," Cianelli said.

To date, 13 states have laws that allow the state to award cable licenses.

Verizon is currently building a network for high-speed Internet and video in Massachusetts. The company can now offer Internet service, but it has to ask municipalities for approval of a cable license in order to offer television.

A total of 49 communities have approved cable licenses for Verizon. Another 19 applications are being negotiated.

The bill is pending in the telecommunications committee. The committee will vote whether to recommend approval by the full Legislature.