Texas Senate takes pass on video franchise issue

The Texas Legislature came close to enacting a law that would have given Verizon, SBC and all other telcos the ability to build video networks without getting franchises in every municipality, but once again failed to pass the legislation.

Senate Bill 21 passed both the House and Senate by overwhelming majorities during a 30-day special session to address school finance and property tax reform. However, because of changes made during the House vote, the Senate was required to revote, and the session ran out before that vote could be taken. Both Verizon and SBC have been pushing for legislation that would grant the carriers a blanket franchise agreement, saying that going before the thousands of franchising authorities required would mean a significant delay in promoting video competition.

In a prepared statement today, Verizon Southwest Region President Steve Banta said the company is confidant the legislature and Gov. Rick Perry will find a solution.

“Although time ran out during the first special session, Senate Bill 21 received overwhelming support from both the House and Senate members,” the statement read. “The strong support from both chambers speaks to the victory this legislation would mean for consumers who continue to clamor for a choice in video providers. The legislation would give Texans meaningful choice of video services they want and competition they deserve.”

Verizon already is offering it FiOS service, which will include video, in Keller, Texas. The carrier also has support of several consumer organizations, which believe the bill would increase choices.

Texas cable operators, who claim the bill is a gift to two large carriers that don’t need any help, staunchly opposed the legislation. When the bill cleared the Senate earlier this week, Texas Cable & Telecommunications Association Chairman Tom Kinney issued a statement saying that “sound public policy, regulatory parity and service protections for Texas consumers went out the door” with the bill’s passage.

“SB 21 will raise phone rates, create a complicated dual video franchising system with different and anti-competitive rules for cable and video providers, and strip away service quality safeguards and other customer protections,” he said.