FCC to Consider Curbing Local Cable Franchising Powers Posted by Bob at 12/14/06 12:30 PM

The Federal Communications Commission has set December 20 as the date it will take up a controversial proposal that would eliminate much of the bargaining power of local governments in cable franchise negotiations.

At issue is a plan being championed by FCC Chairman Kevin Martin to strip local governments of some of their most effective tools in negotiating concessions – including basic consumer protections – from would-be cable providers.

Martin’s plan is basically the same one that phone companies tried unsuccessfully to get through Congress this year. If approved, the plan would be a major coup for big telephone companies such as AT&T and Verizon, who are pushing aggressively into the cable television business.

One of the biggest changes would be the establishment of a 90-day “shot clock” for local governments to process cable franchise applications. Under Martin’s plan, phone companies would automatically be able to begin offering TV service if they cannot reach an agreement with local communities within 90 days.

The plan would also cap franchise fees and place limits on the ability of local governments to require cable providers to build out their systems within a certain time period.

Last week Martin gave a speech at a Washington think tank where he outlined the plan. You can read that speech here.

Cable companies and local governments say they think the FCC is reaching beyond its legal limits with the plan. Both are already indicating they will challenge the plan in court if it is approved by the FCC.

The Martin plan is one of several items slated for consideration at the FCC next public meeting on December 20. You can see the full agenda here.

Another controversial item that is not on the agenda for that meeting is the proposed $82 million merger of phone giants AT&T and BellSouth. If approved by the FCC, the merger would create the country’s largest telecommunication company.

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