 | |
| |
TechnologyDaily Mobile
Iowa Overhauls Video Franchising Rules
by Michael Martinez
Score another one for the telephone industry.
Iowa Gov. Chet Culver, a Democrat, on Tuesday signed into law a measure that will allow video service providers to enter his state's market in one step. Under the new system, telephone companies looking to get into the television business will be able to apply for statewide franchises instead of being forced to negotiate with localities separately.
Telephone companies have been pushing for similar state-wide franchise laws in state legislatures throughout the country for the past several years. Lobbying at the state level has intensified since a federal bill to implement a nationwide franchising system failed during the 109th Congress. More than a dozen states have adopted statewide video-franchising laws.
The passage of the Iowa bill was embraced by Qwest, the state's dominant telephone provider. In a statement, Max Phillips, the company's Iowa president, said the measure will bring "common sense" to the state's video market.
"This law will streamline the manner in which video providers enter the market in competition with the cable monopoly and promote competition in the marketplace," he said. "As a result, consumers will now get a long-deserved choice in video providers and along with it, better service, and most importantly, lower prices."
The law transfers the state's franchising authority from local governments to the Iowa Utilities Board. Regulators will be required to rule on franchising applications within 15 days of when they are filed.
The Iowa League of Cities opposed the measure, citing concerns about how it affects the authority of municipalities in the franchising process. The proposal also drew criticism from the Consumer Federation of America, Consumers Union, the watchdog group Free Press and the U.S. Public Interest Research Group.
Video-franchise reform bills are still in play in several states, including Illinois, Massachusetts, Minnesota, Nevada, New York, Ohio, Pennsylvania, Vermont and Wisconsin. A bill in Tennessee was pulled by its sponsor earlier this month.
Connecticut Top Cop Accuses Best Buy Of 'Bait And Switch'
Connecticut's top law enforcement official accused the retail chain Best Buy this past week of overcharging its customers.
State Attorney General Richard Blumenthal announced plans to sue Best Buy for pulling what he called a "bait and switch" on consumers by advertising higher rates on in-store computer kiosks and charging them the inflated prices.
According to Blumenthal, Best Buy denied customers deals that were advertised on its corporate Web site. He claims the company used kiosks in its stores that presented information made to look like what was available online.
In a press release, Blumenthal said the state would seek restitution for consumers and civil penalties. He also pledged to compel Best Buy to live up to promises it has advertised since 2005 to match all lower prices found online, including those on its own corporate site.
"The company commonly kept two sets of prices -- one on its Internet site and an often higher set on its in-store, look-alike, available on kiosks," he said. "The in-store site was an Internet look-alike, commonly with higher prices, which were charged to consumers. Best Buy broke its promise to give the best price -- an Internet version of bait-and-switch -- a technological bait-and-switch plus."
Best Buy issued a statement last week denying Blumenthal's accusations about the in-store kiosks. The Richfield, Minn.-based firm acknowledged that a small percentage of customers did not receive the deals they should have and pledged to "vigorously defend" itself in court.
"Once this issue was brought to our attention, we provided immediate training for our employees to help ensure that all customers received the best price," the company said. "We are in the process of making changes to eliminate future confusion."
Blumenthal said changes made to the kiosks in response to his investigation were "minor and incomplete."
"The in-store kiosks are still mislabeled 'BestBuy.com,' falsely leading consumers to believe they are connecting to the Best Buy" Web site, he said.
Ex-Dallas School Officials Accused Of Taking Bribes
A pair of former Dallas school officials has been accused of steering millions of dollars in computer contracts to a Houston-based vendor.
A 16-count federal grand jury indictment unsealed Tuesday alleged that former Dallas Independent Schools Chief Technology Officer Ruben Bohuchot and former Chief Operating Officer William Coleman inappropriately directed $39 million in computer deals to Micro System Enterprises. Frankie Wong, the president of the company, also was indicted. All three defendants have been charged with bribery, conspiracy and money laundering.
According to prosecutors, Bohuchot and Coleman accepted lavish gifts from Wong's company in exchange for helping Micro System Enterprises secure lucrative deals with the city's school system. The alleged crimes included a plot to defraud the federal e-rate program, which subsidizes telecommunications services at schools and libraries.
In a statement, U.S. Attorney Richard Roper said federal investigators have been probing the matter for months before the indictment was handed down this week.
"Taxpayers deserve to know that stewards of their tax dollars are trustworthy," he said. "This office has a zero-tolerance policy for anyone who breaches that trust; in fact, anyone who breaches that trust will face the full force of a federal indictment."
The indictment also included a forfeiture allegation that would require the defendants to hand over to authorities some of the gifts they received, if they are convicted. Federal agents already have seized a luxury yacht, which is being held by the U.S. Marshals Service pending trial.
Attorneys for the defendants all told The Dallas Morning News this week that their clients were innocent and that the company won the computer contracts legitimately. The newspaper first reported on the relationship between Bohuchot and Wong two years ago.
Illinois Opens Up Criminal Records To Private Schools
Illinois Gov. Rod Blagojevich on Tuesday signed into law a measure to make nationwide criminal records available to private schools for employment screening purposes.
The data was previously only available to the state's public school system. Illinois is the first state in the nation to offer private schools access to the records to help the schools conduct background checks on potential employees.
"Whether your children go to public or private schools, you want to make sure they will be safe and protected from dangerous individuals," Blagojevich said in a statement.
The Democratic governor added that the state police already are developing processing procedures to open up the data systems to private schools.
NEW FEATURE
-Advertisement-
-Advertisement-
-Advertisement-
