Cable Choice

Big Week for Consumers in Congress

It’s a big week in the House of Representatives for consumers because the Energy & Commerce committee is taking up the video franchise bill (aka the Communications Opportunity, Promotion and Enhancement Act) for a full vote. Its an opportunity for members of the committee to declare that they stand with consumers and pass a good, clean franchise reform bill or that that they stand on the side of the cable companies and continually increasing cable rates. Will the members stand for better service and more choices or will they stand for the status quo service standards and no opportunity to choose another provider? These are the options.

MTVu/Cisco Digital Incubator

MTVU, an college-focused offshoot of MTV, and Cisco Systems have partnered to launch Digital Incubator, a project to find, fund and incubate college students pioneering the future of broadband programming. This exciting venture has chosen its finalists who are now preparing their final projects. This is just another example of the creativity and potential that will be unleashed with deployment of true broadband.

Cablevision's Free Ads

Newsday has a story showing that NY cable provider Cablevision had the highest lobbying expense of any company in the state of New York. Look a little closer and you realize that its not just money spent on lobbying, but in large part from free advertising on its own networks – the ability few, if any, other companies have. The power to run your own lobbying ads with the potential to block your opponents’ ads should raise serious concerns with lawmakers and regulators. This advantage in cable competition battle can’t hide the fact that consumers want choice, lower prices and better service. Unfortunately, this unlimited ad budget could delay those benefits to consumers.

Franchise Bill in Subcommittee Today and Tomorrow

The House Subcommittee on Telecommunications and the Internet is holding a markup on the streamlined video franchise bill beginning tonight and going through tomorrow. The subcommittee should remain focused on passing a bill to remove the barriers that are keeping consumers from enjoying competition for cable and Internet service. The subcommittee will be considering many amendments to the fairly clean bill but they should ignore those amendments that don’t directly address the lack of competition in the cable marketplace. The longer consumers wait for competition, the longer they pay rising cable bills.

In another development, the House Judiciary committee is considering taking up net neutrality aspects of the video franchise bill which would grind progress on video choice to a halt (via JoHo, National Journal). Congress must move to pass franchise reform now so consumers can start saving. Side issues only delay the benefits of competition.