Legislature considering cable competition bill

Thursday, March 22, 2007 11:56 AM EDT

ALBANY - Increased cable television competition could be coming to New York state as lawmakers seek to lower consumers' bills.
Charles Bell, programs director for Consumers Union, said at a state legislative hearing Wednesday that in the 11 years since Congress passed the Telecommunications Act deregulating the industry, consumers nationwide have seen a 64 percent increase in cable rates under “monopolistic” cable pricing.

However, in the areas where landline competition exists, consumers have seen 15 percent reductions in their cable bills, he said.

State lawmakers are now considering a measure that would allow telecommunication companies to bypass local cable television permits and quickly build new networks. Proponents say that would allow companies such as Verizon Communications or AT&T to compete with Time Warner Cable and Cablevision Systems Corp. and lead to lower prices.

Competition in New York has been slowed by requirements that cable companies secure individual licenses, or franchises, from each community where they want to do business. Verizon and others say that is unnecessary and time-consuming and want the state to enact a law allowing so-called statewide franchises.

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