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States Tangle Over Telecom Issues
by Michael Martinez
Legislative committees in North Carolina approved a pair of bills to streamline video-franchising rules Tuesday.
Panels in the House and Senate authorized versions of legislation to strip local governments of their regulatory authority by allowing video providers to obtain statewide franchises. The Senate Commerce Committee approved S.B. 1559, while the House Finance Committee approved a nearly identical bill, H.B. 2047.
Under both bills, the secretary of state's office would become the sole video-franchising authority in the Tar Heel State.
Indiana, Kansas, South Carolina and Texas have enacted similar legislation. California, Louisiana and Michigan are considering bills to eliminate local video-franchise rules. At the federal level, the House last week passed a measure to establish a nationwide system through which companies could apply for franchises with the FCC.
Critics of the North Carolina proposals on Tuesday argued that they would not require new entrants to provide services in low-income and rural neighborhoods. An amendment offered by state Rep. Jennifer Weiss to impose such build-out requirements was defeated.
Meanwhile, Connecticut Attorney General Richard Blumenthal on Tuesday requested that utility regulators in his state temporarily require AT&T to provide its Internet-based television service to every consumer in the state.
Blumenthal asked the state's Public Utility Control Department to freeze a decision made earlier this month to classify AT&T's Internet protocol television system as a data service. That classification would exempt it from state regulation. The department ruled that the physical structure of AT&T's IPTV network is fundamentally different from those used by cable-television operators, which must operate under state franchising rules.
Blumenthal said the department should delay its decision until courts review it, or until federal or state lawmakers prescribe legislation to "provide direction" for IPTV regulation. His request was supported by Cablevision, Charter Communications, and the New England Cable and Telecommunications Association.
"This new and exciting technology potentially provides real competition to increasingly expensive cable television," Blumenthal said. "But real relief for consumers -- lower competitive prices -- requires that service be available to all. Without protective regulation, IPTV providers will cherry-pick the wealthiest and most accessible consumers, leaving the rest of Connecticut with fewer choices and higher cable costs."
Missouri Enlists AT&T For Broadband
Missouri Gov. Matt Blunt on Tuesday announced the launch of a $28 million joint initiative with AT&T to improve high-speed Internet access in his state.
AT&T, the state's dominant telecom provider, will expand its network of digital subscriber lines in 15 cities, including Kansas City and St. Louis. It also will deploy broadband service in 15 rural areas where it was unavailable.
"Access to this type of technology will spur economic development, connect friends and family, and set the stage for the expansion of Internet technology in our state, which is critical to our future," Blunt said in a statement. "With this new investment, we are bringing the latest broadband technology to some of the smallest communities in our state."
Blunt credited legislation passed last year to allow telephone providers greater pricing flexibility for encouraging broadband investment in the Show Me State. He said phone firms have lived up to their promise that updated telecommunications laws would increase competition in the state.
"The legislation was carefully crafted to ensure that the interests of the people are at the heart of this bill -- creating jobs, encouraging investment, and bringing technology to more Missourians," said state Rep. Rex Rector, an author of the bill. "That was our No. 1 priority."
La. House Kills Disaster Communications Plan
Louisiana lawmakers on Wednesday shelved a measure to enhance the state's emergency communications infrastructure.
The House Judiciary Committee voted 10-4 to kill a bill, S.B. 739, designed to ensure that the communications systems used by emergency responders function across jurisdictions.
The Senate unanimously approved the measure last month. Critics of the bill have argued that Gov. Kathleen Blanco already has established a special committee to address the issue and that additional legislation would cause unnecessary confusion.
Blanco's liaison with state House leaders, Hunt Downer, told the panel on Wednesday that the bill "would run counter to what the governor's executive order is doing."
In other news, a site maintained by Florida's Emergency Management Division was infiltrated on Tuesday by an allegedly authorized user while the state was preparing for Tropical Storm Alberto, its first test of this year's hurricane season.
The Tallahassee Democrat reports that access to the site was disrupted for about 20 minutes on Tuesday, delaying an emergency briefing to emergency workers.
"Someone intentionally did this," said Carla Boyce, plains chief at the Service Management Division. "Loopholes get discovered, and hackers take advantage of them."
According to the newspaper, the state's law enforcement department is investigating the matter, and emergency management employees are reviewing logs to determine the identity and location of those responsible for the breach.
David Halstead, the chief of preparedness and response at the emergency management division, told The Palm Beach Post that the site's front page was replaced with a substitute during the intrusion. Details on the fake page were not disclosed.
South Dakotans Urge Video Lottery Initiative
A group of South Dakotans bent on terminating the state's video lottery system plans to request that the state Supreme Court put the issue on the ballot for a public vote this fall.
AP reports that Larry Brendtro, treasurer of the group Forward South Dakota, wants to challenge the refusal of state Attorney General Larry Long to make the issue a ballot measure in November. Long has contended that the video lottery is a protected source of state revenue.
"I think it's pretty clear from my understanding of the law that the citizens of South Dakota have a constitutional right to go to the ballot box and lower their taxes, eliminate programs, start new programs, and his decision flies in the face of that," Brendtro said.
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