Representative Harwell supports cable bill

Representative Harwell supports cable bill

NASHVILLE - Legislative leaders reached a consensus recently on the much-anticipated “Competitive Cable and Video Services Act.” Representative Beth Harwell (R-Nashville) said she was pleased with the outcome of the strenuous negotiations, but that consumers won in the end.

“Although it has taken a while to get to this point, I am excited about the possibilities that this bill will bring,” said Rep. Harwell. “Consumers are the real winners—anytime competition can be introduced into the market, they are the ones who benefit.”

Representatives from the competing cable industries have worked on a compromise with legislative leadership for the past 14 weeks. The bill was put on hold a year ago, with the legislature adjourning before a decision was reached. It passed House Commerce Committee this week, and is now headed to Finance, Ways and Means. Leaders said they believe the passage of the bill will expand competition, jobs, choice for consumers, and investment in Tennessee with broadband infrastructure.

Under House Bill 1421 new cable competitors could obtain a 10 year franchise certificate from the Tennessee Regulatory Authority (TRA) beginning July 1. Existing providers would continue to pay local franchise fees directly to local government. New competitors operating under a state franchise would also pay for access permits to right of ways for cable lines. In addition, the bill requires service providers to continue allowing access to PEG channels (public, education, and government programming).

With regards to consumer protection, the bill specifically prohibits discrimination based on income or race with strong penalties against violations. Similarly, existing cable companies would be required to continue to serve unprofitable areas. New providers must demonstrate at the end of 3.5 years that 25 percent of the households with access to the service are low income. All providers must meet
FCC mandated customer service standards and the TRA can require credits if a provider does not remedy service complaints.

Legislators said the expansion of high speed broadband to un-served and under-served communities was one of the key provisions of the legislation in order to foster access to rural areas of the state. Video providers that deploy broadband in new areas will get a four to one credit against their video build-out requirements in un-served areas, and a two to one credit in under-served areas, under the proposal. Local governments may subsidize broadband deployment to under-served areas if a TRA review determines no private sector interest exists.