Franchises Being Delayed, Justice Tells FCC
FRANCHISES BEING DELAYED, JUSTICE TELLS FCC
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Justice Department has advised the FCC that it believes some local franchising authorities (LFAs) are imposing unnecessary costs on new entrants and slowing the rollout of new services in competition to cable. As part of its recommended remedy, Justice says LFA's should not be allowed to require new video providers, like telcos, to meet the sort of build-out requirements that have been required of the cable industry. Telcos have been pushing for that freedom from lengthy LFA negotiations. In fact, Justice cites some Verizon arguments in its comments. Those comments to the FCC came in the Commission's open proceeding on whether local franchising authorities are levying unreasonable demands that are holding up the franchise process, Justice said that "in light of the significant entry-deterring effects of mandated build-out requirements, the Department believes that LFA's should not be allowed to impose any such requirements except where necessary to prevent income discrimination," which is already illegal. It said the FCC's presumption should be that a phone company planning to provide video service only to existing phone customers is not denying service to anyone else because of income--so-called 'red-lining.'
http://www.broadcastingcable.com/article/CA6333991?display=Breaking+News
* DOJ Backs Bells on Franchising
http://www.multichannel.com/article/CA6333874.html?display=Breaking+News
http://www.broadcastingcable.com/article/CA6333991?display=Breaking%20News