Washington – A sharply divided Federal Communications Commission voted 3-2 along partisan lines Wednesday to impose new measures meant to ensure local governments do not block new competitors from entering the cable-television market.
The vote came on the same day FCC Chairman Kevin Martin released a report on cable prices that shows in 2004, average cable rates rose 5.2 percent. The report also shows that from 1995 to 2005, rates increased a total of 93 percent.
The new rules approved by the commission will require local cable-franchising authorities to act on applications from competitors with access to local rights-of-way within 90 days and to act within six months on applications from other new competitors.
The FCC also will ban local governments from forcing new competitors to build out new systems more quickly than the incumbent carrier and to count certain costs required of new carriers to go toward the 5 percent franchise fee they are required to pay.
Gary Lytle, Qwest’s senior vice president of federal relations, called the order “an important first step in bringing competition for video services to local communities and providing consumers with better choices and lower prices.”
Denver-based Qwest has video franchise agreements in a number of communities in four states. But it has struggled to reach agreements with several major cities in its 14-state service territory, including Denver.
“This order is welcome news, but there are still critical issues that state policymakers must consider, including the development of a streamlined franchise process that actively encourages companies to begin offering new video services,” Lytle said.
Wednesday’s meeting was unusually rancorous with Democratic Commissioner Jonathan Adelstein challenging FCC staff on the assertion that localities are blocking access and Martin departing from what is usually a carefully scripted meeting to defend the measure.
Adelstein and fellow Democrat Michael Copps harshly criticized the measure, questioning the agency’s evidence that there are barriers to entry by competitors. They also expressed concern over the loss of local control by franchise authorities and were unconvinced that the FCC has the legal authority to impose the new rules.
The cable pricing survey, the first released in 22 months, showed that competition from satellite competitors such as DirecTV has little if any effect on cable prices.
