California Lawmakers Approve Cable Franchise Reform Bill – New Bill Will Have Positive Impact on California and Nation
Press Release
9.11.2006
For Immediate Release:
September 11, 2006 Contact: Susan Martin, Press Office
415-955-6120 or smartin@pacificresearch.org SAN FRANCISCO – Governor Arnold Schwarzenegger is expected to sign a bill that will squash the decades-old cable monopoly by making it easier for new competitors to enter the market. The cable franchise reform bill (AB 2987), supported by both parties, will replace the old system where video providers had to negotiate with thousands of slow-moving municipalities for the opportunity to serve customers. “It was past time for lawmakers to remove the monopoly that local governments had created for cable services,” said Sonia Arrison, director of Technology Studies at the Pacific Research Institute and co-author of Cutting the Cord: Streamlining the Video Franchising Process, a major study released this year on the merits of reforming the video franchise system. Over the last 10 years, cable television rates have shot up almost 86 percent but without any significant improvement in service. Moreover, competitors to this dysfunctional system have been clamoring to get into the market.” AB 2987 creates a statewide video franchise system run by the Public Utilities Commission. Franchises, which are essentially permission from the government for companies to enter the market, will be awarded 44 days after receipt of a complete application and will remain valid for ten years. The passage of California's bill greatly decreases the incentive for bad compromises on the issue in Congress as well, because it increases the number of customers that can already be reached without national legislation. “California lawmakers have finally done something even the most jaded critic will appreciate,” said Ms. Arrison. “Cable franchise reform will help bring down prices and raise quality for consumers, create jobs in California, and have positive rippling effects nationwide.” ### About PRI
For 27 years, the Pacific Research Institute (PRI) has championed freedom, opportunity, and individual responsibility through free-market policy solutions. PRI is a non-profit, non-partisan organization. For more information please visit our web site at http://www.pacificresearch.org/
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