BellSouth is testing out a new video service in markets throughout the Southeast. But before rolling out Internet Protocol Television or ‘IPTV’ in Tennessee, the company wants new statewide franchising rights like 14 other states have, including North and South Carolina.
In Tennessee, cable companies like Charter and Comcast must negotiate contracts with individual cities and counties. BellSouth argues that individual contracts keep new competitors from entering the cable video market.
BellSouth legislative affairs director Jim Spears says research shows that video competition reduces cable rates by as much as 22 percent. For that reason, he adds, current providers don’t want it.
“It’s all about market share. Why would you want a competitor in your market that you basically have a virtual monopoly over?”
The Tennessee Municipal League has also come out against the statewide franchising, fearing cities would lose tax money and their say-so over local programming.
BellSouth officials told a state broadband task force earlier this month that by allowing the streamlined franchising, BellSouth could expand the coverage of high-speed Internet access in the state.
Spears says the Competitive Cable Services Act, which enables the statewide franchising, will likely be the most heavily lobbied bill in the 2007 General Assembly. If it passes, BellSouth could be offering video service in Tennessee’s urban markets as soon as 2008.
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