Congress Unlikely to Ease TV Rules for US Telcos Soon

[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
The chances are seen as slim that the U.S. Congress will pass legislation in 2006 to make it easier for companies like Verizon Communications to offer subscription television service despite intense lobbying. The U.S. House of Representatives and Senate are working on bills that would simplify the process for new companies to enter the video market, but they are part of larger bills to speed deployment of high-speed Internet service, or broadband. The Senate Commerce Committee on Tuesday plans to examine the system, but Congress is working on a short schedule because many lawmakers are running for reelection in November. And the complicated nature of communications issues often makes it difficult for lawmakers to reach consensus quickly. "Congress wants to promote Bell (telephone companies) entry into video and is considering franchise relief, but we believe legislation is unlikely before mid-2007," according to a Stanford Washington Research Group report last week. Analysts at Stifel Nicolaus, which also watches the issue, said in their own report this month that "unless dynamics change, congressional relief (is) an uphill fight this year, making state, local battles more critical."
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