It would speed the process by which Verizon, others 'bring viable competition'
Source
A bill to cultivate cable-TV competition moved swiftly through the Senate Commerce and Labor Committee yesterday in an undisputed decision.
"All the parties involved feel that the competition will ultimately bring down the price, and I think this actually does bring viable competition," said Sen. Kenneth W. Stolle, R-Virginia Beach, who sponsored the bill that has moved to the full Senate for consideration.
Verizon Communications Inc. is laying a network in more than a dozen states, including Virginia, that will allow the phone giant to provide video and compete with satellite and cable-TV providers.
But the New York-based telecommunications company wants to sidestep what it believes is too long a process to gain cable-licensing deals from every city or county it plans to serve.
The firm also wants to build its lines -- made to carry data, voice and video -- at a pace it prefers, building to areas it selected.
In Virginia, Verizon had originally backed bills this year that would have helped it do so -- a move challenged by the cable industry, which supported opposition legislation.
The compromise bills -- formed last week by lawmakers in each house -- would speed up the time it takes for Verizon and others to enter the TV market, though with conditions meant to protect the public.
Under the bill, Verizon could pick its initial service area and would have to serve that entire district within three years. The company is building lines in Richmond and the counties of Chesterfield and Henrico.
After seven years of providing TV, 65 percent of households that already have Verizon's phone service would have to be hooked up to receive video signals. Local governments could ask for additional cable-service areas if they believe further rivalry is needed.
Special benefits or exemptions given to Verizon or the new video provider would have to be offered to the existing cable company.
The bill also would affect other companies seeking entry into the video market, such as Richmond-based Cavalier Telephone.
While the company supports bills that promote competition, the legislation is "a compromise between giants," said John Shumate, counsel for Cavalier's broadband TV unit. While the current bill is a good first step, he said Cavalier will work to make sure it is fair for smaller providers.
The legislation is Senate Bill 706, which incorporated a previous bill from Sen. Walter A. Stosch, R-Henrico.
A House committee is expected to hear its version of the bill today.
Source
A bill to cultivate cable-TV competition moved swiftly through the Senate Commerce and Labor Committee yesterday in an undisputed decision.
"All the parties involved feel that the competition will ultimately bring down the price, and I think this actually does bring viable competition," said Sen. Kenneth W. Stolle, R-Virginia Beach, who sponsored the bill that has moved to the full Senate for consideration.
Verizon Communications Inc. is laying a network in more than a dozen states, including Virginia, that will allow the phone giant to provide video and compete with satellite and cable-TV providers.
But the New York-based telecommunications company wants to sidestep what it believes is too long a process to gain cable-licensing deals from every city or county it plans to serve.
The firm also wants to build its lines -- made to carry data, voice and video -- at a pace it prefers, building to areas it selected.
In Virginia, Verizon had originally backed bills this year that would have helped it do so -- a move challenged by the cable industry, which supported opposition legislation.
The compromise bills -- formed last week by lawmakers in each house -- would speed up the time it takes for Verizon and others to enter the TV market, though with conditions meant to protect the public.
Under the bill, Verizon could pick its initial service area and would have to serve that entire district within three years. The company is building lines in Richmond and the counties of Chesterfield and Henrico.
After seven years of providing TV, 65 percent of households that already have Verizon's phone service would have to be hooked up to receive video signals. Local governments could ask for additional cable-service areas if they believe further rivalry is needed.
Special benefits or exemptions given to Verizon or the new video provider would have to be offered to the existing cable company.
The bill also would affect other companies seeking entry into the video market, such as Richmond-based Cavalier Telephone.
While the company supports bills that promote competition, the legislation is "a compromise between giants," said John Shumate, counsel for Cavalier's broadband TV unit. While the current bill is a good first step, he said Cavalier will work to make sure it is fair for smaller providers.
The legislation is Senate Bill 706, which incorporated a previous bill from Sen. Walter A. Stosch, R-Henrico.
A House committee is expected to hear its version of the bill today.
