What They're Saying

Verizon battles for speedier cable TV franchise approval
By Kenneth Ross, Springfield Republican | June 03, 2007

Cable television hearings in Boston on Tuesday may be the legislative equivalent of battling for possession of the remote control.

At issue is legislation that would speed the approval time for new cable franchises and transfer the power to grant licenses to the state from local municipalities.

On one side is Verizon Communications, which is pushing for the bill to allow it to expand cable service more quickly into new territory. On the other is just about everybody else, but namely the cable industry and the Massachusetts Municipal Association.

The hearings will be held by the Joint Committee on Telecommunications, Utilities and Energy in Gardner Auditorium in the State House. Pioneer Valley members of the committee include state Reps. Michael F. Kane, D-Holyoke, Angelo Puppolo, D-Springfield, and Todd M. Smola, R-Palmer.

The legislation was filed by state Sen. Steven Panagiotakos, D-Lowell, and state Rep. Janes Vallee, D-Franklin.

Verizon contends the legislation would increase competition and lower prices for customers. Opponents argue the opposite and claim the existing system works well for everyone - including Verizon.

Philip G. Santaro, spokesman for Verizon, said 12 states have adopted similar laws, and 12 others have legislation pending.

"It would be going to a consistent approval process that follows the same guidelines in every location," he said. "Everybody would get the same amount of money for public access, education and government channels, and would operate under the same guidelines."

He said it takes an average of 15 months - sometimes as much as two years - to negotiate a cable franchises in individual communities. Opponents said Verizon sometimes waits several months from the time it files an application until it takes action on it.

"Instead of 15 months to get approval, we're talking about 15 days," Santaro said.

"The cable companies are dead set against it because they want to hold onto their monopolies. Every day they keep us out of their market is a good day for them."

Verizon said it is installing fiber optic cables in areas where it offers cable TV service in addition to its existing telephone and Internet services. Its television service is largely in eastern Massachusetts, although it has come as far west as Marlborough.

It most cases, it is "overlashing" the fiber optic cable over its existing lines.

"How long it takes to install the cable depends on the size and density of the town," Santaro said. "In some towns it can be done in as few as three or four months. Others take more than a year."

In towns where it has franchises, it offers TV service that competes with existing cable operations. Santaro said there is no timetable for offering the service in the Pioneer Valley.

"We are competing with our colleagues in all of Verizon's other states for capital expenditures," he said. "It's much easier to make investments in state francising states. We go to the company to make our best case to give us capital money. Every other state is doing the same thing."

He said in New Jersey the decision takes 45 days. In Texas it takes 17 days.

"The question is, where does it make the most sense to put limited capital dollars," Santaro said. "We're trying to create a better climate for investing. We're not asking anybody to lose anything."

Verizon offers cable TV service in 49 Massachusetts towns and is negotiating with 20 more.

"We haven't planned beyond that because we're getting a backlog and we want to finish the projects we've started before we take on new ones," Santaro said. The Massachusetts Municipal Association has sent a campaign kit to local officials throughout the state to help them in the effort to defeat the bill.

"Under the bill, the state would only have two weeks to approve or deny an application and could only review an application for completeness but could not negotiate terms," the association says on its Web site.

"Verizon's bill ignores the responsibility cities and towns have to protect public rights of way, and would allow Verizon to choose which neighborhoods it will serve."

Paul R. Cianelli, president of the New England Cable and Telecommunications Association, said he will testify against the bill.

"This basically is a fight between Verizon that supports legislation that benefits only them and municipalities," he said. "The present system works well for Verizon. They've been very successful getting franchises. Is there a municipality that wouldn't want Verizon service? Of course, they'd want it."

Cianelli said competition isn't an issue for the cable and telecommunications association's members, which include Comcast, Charter Communications, Time Warner and Cox cable systems.

"There are 400,000 households in Massachusetts who subscribe to dish service. There's plenty of competition," he said.

Robert J. Spain, director of government relations in New England for Charter, said competition is fine, but it should be a level playing field.

"We haven't had any problems with the current rules," he said. "Whatever legislation is approved has to be fair to everybody. When you enter a new business, you ought to follow the rules."

Spain called the bill an anti-consumer bill that "provides an operating climate that gives the advantage to one party over another."

"There's nothing wrong with new entities entering the marketplace," he said. "We've entered other companies' marketplaces, but we've followed the rules. It's like a baseball team saying, 'We want the designated hitter for us, but your pitcher is going to have to bat.'"

Comcast referred calls to the cable and telecommunications association. It provides cable TV service in Springfield and 34 other towns including Agawam, Amherst, Bernardston, Buckland, Chester, Conway, Deerfield, Erving, Gill, Granby, Granville, Greenfield, Hardwick, Hatfield, Holyoke, Huntington, Longmeadow, Monson, Montague, Northampton, Northfield, Palmer, Pelham, Shelburne, South Hadley, Southwick, Sunderland, Ware, Warren, West Springfield, Westfield, Westhampton, Whately, and Williamsburg.

Charter offers cable TV service in Chicopee, Ludlow, Belchertown, Hadley, Hampden, Easthampton, East Longmeadow, Brimfield and Wales.

Santaro emphasized that from Verizon's point of the view, the main issue is the time it takes to get a new franchised approved.

"We are getting franchises in Massachusetts," he said. "We haven't been turned down yet."