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A ‘Sweetheart Deal’ for Verizon and AT&T?

ico_11.gif Reports from D.C. indicate members of the House Energy & Commerce Committee have agreed on principles that could be included in a bill that would award the RBOCs a national video franchise. We haven’t seen the proposed legislation yet—it’s reportedly expected next week—so we can’t comment on details. But, as NCTA head Kyle McSlarrow told reporters yesterday, we’d have to agree that if the actual provisions are as initial reports are characterizing them, it would amount to quite a “sweetheart deal” rewarding the relentless lobbying of Verizon and AT&T. Multichannel News reported that the expected legislation would grant national franchises to the phone companies while subjecting Cable to existing local franchises until the RBOCs get 15% video penetration locally. The RBOCs, McSlarrow told reporters, “don’t really want 15%. They want the right 15%." We maintain that consumers would benefit from video franchising rules allowing Cable and the RBOCs to compete fairly, not on an unlevel playing field unfairly benefiting the likes of Verizon and AT&T. Stay tuned for more once we see the expected legislation and can determine how level or slanted a field it would likely create.

Posted on March 10, 2006 12:31 PM | Comments (0)

« AT&T Goes After BellSouth to Create National Behemoth | Main | Et tu, Leo? »

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