Consumer
groups today said a video franchising bill that is quickly making its
way through the General Assembly is likely to result in higher, not
lower, cable rates for many Pennsylvanians. The groups urged the
Assembly to take more time to consider the anti-consumer impacts of the
legislation. The proposals (SB 1247 and H.B. 2880) would eliminate the
ability of municipalities to require that Verizon and other phone
companies offer their video services to all consumers in the community
and meet basic customer service requirements, requirements that
communities have imposed on other cable providers.
“This
legislation weakens consumer protections without any promise of
competition, lower rates or better cable service,” said Beth McConnell,
director of the Pennsylvania Public Interest Research Group (PennPIRG).
“The General Assembly should craft cable legislation for consumers, not
for Verizon,” she said.
The
groups said though the legislation purports to foster more competition
in the cable marketplace and lower cable costs to consumers, it could
actually produce rate hikes. Among its many provisions, the proposal:
• Would undermine the power of municipalities to negotiate local franchise agreements with cable companies;
• Would severely curtail resources for existing public, educational and
government (PEG) access channels and set up obstacles for the creation
of new PEG Channels;
• Eliminates the authority of localities to require service to all
consumers in a market (build-out) without providing for a state-wide
build out requirement, leaving many consumers without a competitive
alternative to their cable monopoly that will be free to hike cable
rates.
Despite
the anti-consumer consequences the bills are being fast-tracked through
both chambers of the state legislature. Consumers groups are urging the
General Assembly to slow down.
“Without
thoughtful review and critique, this pro-industry give-away is sure to
leave many Pennsylvanians with higher cable bills, lousy service and no
new options,” said Joel Kelsey of Consumers Union, the non-profit
publisher of Consumer Reports.
Votes
are scheduled for Tuesday, September 25 in both the Senate
Communications and Technology committee and the House Consumer Affairs
committee.
