Senate approves cable TV measure

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By Dan Gearino | Wednesday, March 21, 2007 10:36 AM CDT | () comments

DES MOINES — Cable television providers would have an easier time entering the Iowa market under a bill passed Tuesday in the state Senate. Supporters say the measure would lead to lower rates and greater options.

The bill, which passed 44-6, would give the Iowa Utilities Board the authority to grant statewide franchises to cable companies. That would replace a system by which cable companies need to get approval from local governments.

“The bottom line here is the present process prevents competition. Lack of competition results in fewer choices and higher prices for consumers,” said the bill’s main sponsor, Sen. Steve Warnstadt, D-Sioux City.

The “no” votes came mainly from senators such as Sen. Jeff Danielson, D-Waterloo, who have concerns about how the bill would affect existing cable service.

“It is not an easy issue to solve,” he said.

Over the past two years, a dozen states have passed legislation that makes it easier for new competitors to enter the cable television market, according to the National Conference of State Legislatures.

Texas began the trend in 2005 when its Legislature passed a bill to help settle a feud between cable and phone companies.

Technological advances in the telecommunications industry have allowed cable and phone providers to offer each other’s services.

However, state laws governing cable franchise rights mean that phone companies need to negotiate with individual cities for the right to offer cable services. Phone companies such as Qwest argue that customers would be better served if cable franchises were controlled at the state level.

“What we’re trying to do with this legislation is create a competitive environment, much like the telephone industry has today,” said Qwest lobbyist Michael Sadler.

The main opponent of the bill is the Iowa League of Cities, which contends that the current system allows cities to customize their cable franchise agreements to meet local needs. Cities sometimes negotiate special deals that include free services for the city government.

“There’s a problem with a one-size-fits-all mentality in Iowa. Different communities have different needs,” League of Cities attorney Terrence Timmons said.

Cable companies opposed previous versions of the bill, but they dropped their opposition after legislators added a provision that says new competitors would pay the same fees as current providers.

Dan Gearino can be contacted at (515) 243-0138 or dan.gearino@lee.net.