Texas nears end of local video franchising

The House branch of the Texas legislature in a special session has passed a bill that makes cable TV and video franchising a statewide provision. With the Texas Senate having approved the bill Tuesday night, the signature of Texas Gov. Rick Perry is the last hurdle to the elimination of local franchise rules in the state.

Telcos wasted no time cheering the passage of the bill, which will officially make Texas the first state to kill local franchising authority.

Steve Banta, president of Verizon Southwest, said in a statement, "We commend Sen. Troy Fraser and Rep. Phil King and their colleagues in the Texas Senate and House of Representatives for approving legislation that will enable companies like Verizon to compete head-to-head with existing cable providers in the state. Consumer choice and competition among video providers will result in new and innovative services and better pricing.

Meanwhile, the Texas Cable & Telecommunications Association, was predictably less pleased, and charged that Texas legislators didn’t study closely enough how the change in franchising authority will affect prices and consumers.

In a statement release after the Senate vote Tuesday night, Tom Kinney, chairman of TCTA and president of Time Warner Cable-Austin, said, "SBC and Verizon can enter the video market today without the special favors the Texas Senate conceded to them… Once again, Texas taxpayers are on the losing end of a massive lobbying campaign by SBC and Verizon."