FCC may simply change local franchising rules on its own

Filed in archive IPTV on December 7, 2006

FCC Chairman Kevin Martin could revise the video Franchising process. This is the process whereby each local authority extorts determines the terms of whether someone can offer television in the community. In the past, cable companies stitched together their vast empires one town at a time with some very interesting concessions thrown into the mix.

There may have been a time when this made some sense because new entrants had to dig up a town's streets to lay cable. Now, with technology advances, television can often be sent as part of existing infrastructure.

The FCC's ideas include putting

a shot clock on local franchising authorities,
a cap on franchise fees,
a limit on build-out requirements,
and perhaps maintaining rules preventing exclusive programming contracts between cable operators and programmers in which they have an interest.

This is a very pro telco approach. It might be time to load up on some AT&T or Verizon stock.