Virginia Fast-Tracks Video Franchising

[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Virginia Governor Tim Kaine has signed a bill, which becomes effective July 1, that eases the way for Verizon and other new multichannel video entrants to compete with cable operators in the state. Under the new law, Virginia franchises remain under the control of the municipalities. The Richmond Times Dispatch reports that TV service from new providers would have to be available to 65 percent of a community's residents in seven years. Local governments can demand 80 percent penetration in 10 years. Traditionally, cable companies had to serve entire localities. "Competition doesn't matter unless you get" a network built to all residents, said Kenneth DeGraff, policy analyst at Consumers Union. "Sixty-five percent is going to leave large parts of the state uncovered and without competition," he said. "It remains to be seen whether telephone companies will actually deliver meaningful competition to all Virginians." The legislation comes as Verizon Communications builds a network in parts of Virginia, including the Richmond area, to provide video. Verizon has franchise agreements with five Northern Virginia communities. The company sought to change the law to avoid needing to forge franchise agreements with every city or county it planned to serve, a process that can take six to 18 months. The legislation still requires a would-be provider of TV service to strike deals with every locality, but the new structure will allow a licensed company to serve customers in as little as 75 days. In areas where a wire-based cable competitor operates, prices are 15 percent lower, according to a report by the Government Accountability Office, an independent and nonpartisan congressional watchdog group.
http://www.broadcastingcable.com/article/CA6314926?display=Breaking+News...
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* Cable TV rates in Va. could drop
[SOURCE: Richmond Times Dispatch, AUTHOR: Jeffery Kelly]
http://www.timesdispatch.com/servlet/Satellite?pagename=RTD%2FMGArticle%...