In a first across the nation, the Texas State House and Senate passed bills last week that would allow telcos to apply for statewide cable-TV franchises. If Gov. Rick Perry signs the bill, it will be a victory for SBC and Verizon.

Telcos could provide video service in any community, but the bill prohibits discrimination based on income. Telcos also would have to obey local rights-of-way rules, carry public-access channels and pay franchise fees.

The measure would make it easier for phone and other companies to offer television services; avoiding the thousands of local cable TV licenses that cable companies must acquire. Obviously, cable MSO's object to this. The cable industry contends the bill would give big phone companies unprecedented competitive advantages.

Supporters say phone companies would give consumers more choice. They also promised the change would draw billions of dollars in new technology investment.

The bill would keep many existing contracts between cities and cable companies in place until they expire.

Perhaps this will give Verizon important momentum with its New Jersey efforts. Read that post from June >>