Before I begin, I just want to say that I’ve been feeling slightly under the weather the past couple of days, and that combined with a lack of any really exciting news has meant that I haven found much exciting to write about. I mean, even though they are very important topics, you can only write about net neutrality, or the new ways the Senate is considering allowing the big corporations to rape us via the Universal Service Fund, just so many times before you start to get sick of it – and I figure if I’m getting sick of it, readers of this blog probably are also. Not to mention that if it’s really big news happening in Washington, chances are one or more of the better-known bloggers (if not the mainstream media) has covered it. Personally, I’d rather find those little gems of news and information that not everyone has jumped on yet.
One blog that seems to have supplied a lot of my source material recently is called IP&Democracy. Now, there is SUPPOSED to be an ampersand character between “IP” and “Democracy” but about 75% of the time it somehow gets converted to a space character when I post. Anyway, they ran this item today, written by Cynthia Brumfield, which I found more than just a little interesting:
Virginia Franchising Bill Passes
A bill that sets state-wide franchising standards in Virginia was approved yesterday by the House of Delegates following its passage by the Senate. Unlike a comparable state-wide franchising bill passed in Texas, the Virginia legislation isn’t technically a state-wide franchise; instead it guarantees franchise rights to video entrants if they meet certain obligations.New video entrants can decided to go through traditional franchising negotiations, but if after 45 days those talks don’t bear fruit, can opt for a “ordinance” franchise. Under that latter option, the video entrant can enter the market within 75 days if it agrees to certain build-out and fee and channel commitments and the muncipality must accept the entrant.
The final version of the legislation represented a compromise between dueling cable and telco interests — cable companies are happy about the obligations imposed on the entrant, including 100% build-out requirements, while phone companies are seemingly happy with the fast-track franchising process.
The bill has been sent to Governor Tim Kaine for his signature, and if he signs (which seems a certainty), the legislation will take effect July 1.
Update: Cable clearly likes the bill. NCTA President Kyle McSlarrow said in a statement issued this afternoon
The Virginia legislation is a step in the right direction. While it’s not perfect, we’re pleased the legislation recognizes the importance of localism, treats all providers fairly by maintaining a level playing field, and facilitates speedy competitive entry in a way that benefits communities, service providers, and all those we serve.
Now I have always said that I have a really hard time deciding where my sympathies lie in this battle. If you’ve never lived in a city where the local politicians seemed more concerned about making sure that their interests were taken care of than those of the regular citizens, then you might see city control as a good thing. The problem with leaving control up to the cities is you get a mishmash, where some cities really care about the kind of service their citizens get, and others couldn’t care less as long as the mayor’s service doesn’t go out. Then too, you sometimes see a situation where one or two city council members have their own agenda (for example, heaven help you if your city has one or two religious fundamentalists on the council, trying to dictate to the cable company what you can and cannot see, as I believe recently happened in one city in Michigan’s Upper Peninsula).
Plus, it’s obviously more economical for a phone or cable company to only have to deal with one jurisdiction (the state) than dozens or even hundreds of individual municipalities. But on the other hand, a municipality will sometimes do that which the state might be unwilling to do, which is to demand and enforce terms of a franchise agreement that state that service must be made available to all city residents within a specific time period. Again, it really depends on how responsive the city is to its citizens.
And there is one other point about control at the state level vs. control at the city level – if you live outside the city limits, who do you complain to if your service is out frequently, or the company won’t wire you up? In theory there is a franchise agreement with the township but many smaller townships don’t even have a clue as to how to get hold of a representative of the cable company. In the township where I live, the township supervisor was aware of one cable company that served one portion of the township, but he didn’t even know that the company serving the part of the township in which I live was even doing business in the township (apparently it was an old agreement that had never been updated, despite a couple of changes in ownership of the cable company). State regulators usually aren’t quite THAT loose about things.
Yet I know from experience that when the phone companies want something really badly, it’s not because they are concerned that the cities won’t get as much money, or that they intend to pass the savings from not having to deal with each city individually back to customers. No, what they want is one thing and one thing only: To make more money!
But the reason I am so conflicted about this is that I really hate seeing any kind of communications service used as a “back-door” method of taxation. To me, that’s just not right. If cities need revenue, let them submit it to a vote of the people and if the citizens approve it, then add it to the usual city tax bills. I could write paragraphs about why it it wrong to use phone, cable, and broadband bills as tax collection mechanisms (starting with the cry of our forefathers: “No taxation without representation!” Because, after all, who represents you when these clowns are adding on taxes and fees to your bills?). So I’m not real sympathetic to the cities that say they will lose revenue – as far as I’m concerned, it was an immoral source of revenue in the first place. And then again, I’m not sympathetic to the phone companies, who simply want to avoid local regulation so they can save money on attorney fees and other expenses, and so nobody will slap them when they try to redline certain neighborhoods that they may consider “unprofitable.”
Therefore I see the Virginia approach as being, well, sort of the least evil of all the proposals seen so far. It gives neither the cities nor the phone companies too much power. Or at least, I don’t think it does, although I suppose we won’t know for sure until the law has been in effect for a while, and we can see if any unintended consequences arise.
For those who live in other states (including Michigan) were the phone company is trying to get a statewide franchise, you might want to let your elected officials know about this option. It certainly ought to be a talking point in the negotiations!
Technorati Tags: telecommunications, cable, telephone, government, legislation, taxes, regulation, MichiganTelephone

Before I begin, I want to tell you a little about my background. My first experience with a computer when when a friend let me use a spare account he had on a PDP-10 mainframe at Western Michigan University back in the early 1970’s. He was taking computer science and learning the FORTRAN computer language. I was asking, “But what can you DO with a computer?” so he showed me the BASIC language and how I could write simple programs.
I hate to give up when I think that maybe just one more tweak will make things start working! But at some point, I need to sleep!