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OT? Texas Lawmakers Give Phone Industry a Victory in TV Fight

http://ap.tbo.com/ap/breaking/MGBW519R7CE.html


Aug 10, 2005

Texas Lawmakers Give Phone Industry a Victory in TV Fight
By Jim Vertuno
Associated Press Writer


AUSTIN, Texas (AP) - Over the objections of the cable TV industry, Texas lawmakers gave final approval Wednesday to a measure that will make it easier for phone and other companies to offer cable-like services.
The wide-ranging telecommunications bill would allow phone companies to avoid the thousands of local cable TV licenses that cable companies must acquire.

The Senate approved the bill late Tuesday. The House followed with its vote about 12 hours later, sending the bill to Gov. Rick Perry for his consideration.

Texas is one of several states that have considered the issue, with phone companies and cable companies engaged in a furious battle.

Phone companies are investing billions to upgrade their local networks to deliver TV and faster Internet connections, and say such services would be stalled if individual licenses were required in each municipality.

The bills in Texas and other states would let phone companies and other providers get a pay-TV franchise from the state instead of from each city.

Supporters say phone companies such as SBC Communications Inc. and Verizon Communications Inc., which have pushed for the change, will give consumers more choice. They also promise it will draw billions of dollars in new technology investment.

"I think we're going to be amazed how quickly this takes hold," said Phil King, the Republican who sponsored the bill in the Texas House. "The real effect is going to be competition. It's a bill allowing more companies to allow more choices to consumers. That's how competition works."

The cable industry contends the bill would give big phone companies unprecedented competitive advantages.

The bill would keep many existing contracts between cities and cable companies in place until they expire. Those deals are governed by cable TV rules that require local franchise licenses and force television providers to offer service to all homes rather than being allowed to pick and choose neighborhoods.

AP-ES-08-10-05 1147EDT