California to issue video franchises

California late last week became the latest state to create a statewide video franchise program, a move that had been expected since both sides of the state legislature and California Gov. Arnold Schwarzenegger had earlier expressed support for such a law. Major telcos also had been lobbying California lawmakers for several months to approve the measure.

Not surprisingly, state video franchising proponent Verizon Communications was among the first to applaud the new law. Tim McCallion, West region president at Verizon, said in a statement, "Gov. Schwarzenegger's signing of the Digital Infrastructure and Cable Competition Act is a huge victory for California's consumers. Under this law, California sets a new standard for accelerating cable-TV competition, and customers can expect new choices, greater value and improved service in terms of video providers… The new law also provides the certainty for Verizon to commit hundreds of millions of dollars in additional investment to accelerate fiber deployment in California, creating hundreds of new jobs and stimulating our state's economy.”

Verizon officials last week said that the company’s FiOS broadband network upgrade is showing better results than expected. A Verizon executive also at that time downplayed the importance of a national video franchise law to the carrier’s ongoing project.