Cable Regulations May Be Ripe for Renovation

CABLE REGULATION MAY BE RIPE FOR RENOVATION
[SOURCE: TechWorldNews, AUTHOR: Gene Koprowski]
Based on a study by the Mercatus Center at George Mason University, it is time to completely replace cable regulation. The study identifies $8.4 billion in annual costs passed directly to consumers in the form of higher rates for service, as well as fees, and equipment, because of stale video franchise regulations. The study also pinpoints $1.7 billion in "loss of value" that consumers incur annually, due to higher prices induce some consumers to go without cable. Researchers also found that the "natural monopoly" rationale that the government advocates for preventing competition is contradicted by twenty years of data collected by federal agencies and independent scholars. This data consistently finds that cable TV rates are lower with wireline video competition. According to a Government Accountability Office (GAO) study, cable rates in markets with wireline video competition are nearly 17 percent lower than they would be without this competition. It's clear that competition favors consumers, said Jerry Ellig, a co-author of the report for George Mason. This argument that "entry regulation" lowers rates by reducing the cable operators' risks and costs is also unconvincing, experts said. When cable debuted in urban and suburban areas, jurisdictions with competing cable companies had rates equal to or lower than rates in monopoly jurisdictions, the study shows. Ellig said local governments' need to manage public rights-of-way may justify some regulation of construction and a cost-based fee to prevent congestion and reimburse the public for inconvenience when video providers use the public rights-of-way.
http://www.technewsworld.com/rsstory/49353.html