House Energy and Commerce Committee Chairman Joe Barton (R-Texas) released a bill yesterday granting national video franchises to the RBOCs. In his response, it was clear that Kyle McSlarrow, President & CEO of the National Cable & Telecommunications Association (NCTA), is happier with this version than the draft leaked a couple of weeks ago. “Earlier drafts of the House bill focused on picking winners and losers on the basis of technology, and we are pleased that focus has now changed. While our policy recommendation would be to reform and streamline the franchising process to ensure speedy entry by new competitors, we are pleased that the national franchising scheme proposed in the House bill seeks to ensure all providers compete on a level playing field,” McSlarrow said in a statement. The House bill, he said, “represents considerable progress.”

Under the proposed bill, the phone companies would receive 10-year national franchises to offer video services. There would be automatic renewal after each 10-year period. In markets where the telcos provide video service, local cable companies would be freed from local franchises in those markets and granted a national franchise. Gone from the bill is an earlier proposal that would have subjected cable companies to existing local franchises until the RBOCs received 15 percent video penetration locally.

The bill does include a network neutrality provision. Said McSlarrow, “we continue to believe that the better course is for the government to resist injecting itself into a thriving, dynamic market where investment and innovation are flourishing.” The House Subcommittee on Telecommunications and the Internet will reportedly hold a hearing this week and vote on the bill next week. [McSlarrow’s full statement.]