Continuing our coverage of issues being discussed in the 2007 Florida legislature, let’s discuss the issue of a statewide video franchise.
As I write this, I’m watching the House Policy & Budget Council debate HB 529, “Statewide Cable Television and Video Service Franchises.” A similar effort failed in last year’s legislature, and in Congress.
I’ll go for a very brief summary of this issue: like the others, it’s nuanced, but I don’t know as much about this one off the top of my head.
Basically, the bill moves cable franchises from local governments to the state. In other words, if you want to run the cable network in a community, today you have to get approval from the municipality; under this bill, you would get approval from the state. The push for this comes from the telephone companies, who want to get into the video business, but don’t want to have to fight their way through hundreds of local communities — it’s much easier to need only 50 approvals.
The argument goes that, by reducing the transaction cost of getting a franchise (and some have gone so far as to call local governments’ requirements “extortion”), you make it easier for the phone companies to compete, which in turn brings down the cost to consumers.
The counter-argument is that local governments are best able to provide for their residents and will be more likely to go to bat for their area than some state board that will likely get cozy with the industry. Specifically, local governments are known for attaching conditions to their franchises, notably buildout (requiring the companies to offer service in areas they would otherwise not go because they don’t expect to make enough of a profit) and public/educational/governmental channels, or PEG. In Alachua County, this is the channel that carries the county and city commission meetings, the Florida Channel, etc. Other municipalities may require a public access channel (think Wayne’s World); there was a movement to require public access in Alachua County, but interest in following through appears to have waned.
Most of the debate appears to be focused on whether the bill provides enough of these consumer protections under the new system. I won’t get into it more than that at this time.
So why do we care about cable TV? Well, we don’t really, per se. What makes this interesting is that the cable and phone companies also provide Internet access. That means that “buildout” is about broadband access and competition, as well TV. It also brings Net neutrality into the debate.
So what, if anything, will pass? I’d peg the odds at even on something passing this session: it might happen, it might not. On the one hand, the phone companies have their friends in the legislature, and there are those legislators that mistrust local governments and are willing to throw them under the bus. On the other hand, the cable companies don’t like this, consumer advocates don’t like it, and there are legislators that prefer decentralized authority on this issue. If anything passes, I think there’s a fair chance it may be language that’s more friendly to the cable companies or consumer groups, or both. My guess is that stricter buildout or PEG requirements might happen, but any kind of Net neutrality condition would not.
I’ll post some more links and analysis on this when I get a chance.