Bipartisan Video Franchising Bill Passes Committee 42-12

WASHINGTON - Consumers may soon see lower prices for pay TV and exciting new video choices under bipartisan legislation approved Wednesday by the House Energy and Commerce Committee. The Communications Opportunity, Promotion, and Enhancement Act of 2006 passed overwhelmingly on a 42-12 vote.

"This legislation can increase competition not only for cable services, but also unleash a race for who can supply the fastest, most-sophisticated broadband connections that will provide video, voice, and data services," said Committee Chairman Joe Barton, R-Texas. "This race will benefit consumers as prices decrease and innovation increases."

The bill's chief sponsors are Barton, U.S. Rep. Bobby Rush, D-Ill., Telecommunications and the Internet Subcommittee Chairman Fred Upton, R-Mich. and Committee Vice Chairman Chip Pickering, R-Miss.

"The passage of this bipartisan legislation represents a significant step in providing much needed competition in the video marketplace," Rush said. "This bill encourages more diversity in content and ownership, as well as ensures all consumers are highly valued thanks to strong anti-discriminatory language and severe penalties."

Upton said. "This groundbreaking legislation carries out the vision to inject more competition for video services in communities throughout the country, all the while unleashing new technologies and delivering more services to consumers at lower prices. At the end of the day, families will potentially save several hundred dollars for what they spend each year on Internet, phone and cable services."

Specifically, the Barton-Rush legislation would:

• Create a national approval process, known as a "franchise," for telephone carriers and cable providers that offer subscription television. By streamlining this system, more competitors will offer services that are similar to cable TV. The likely result will be lower prices and more choices for consumers.
• Improve competition between VoIP Intenet-based telephone services and local telephone services.
• Require cable and telephone companies to offer broadband services without requiring consumers take telephone, television or other services the provider offers.
• Preserve municipalities' right to collect up to a six percent fee from pay-TV providers. Part of this fee will go towards ensuring local communities can continue to offer public, educational and governmental (PEG) stations.
• Establish penalties of up to $500,000 for broadband providers that block lawful content. The Federal Communications Commission would have, for the first time, explicit power to go after companies that violate network neutrality principles.
• Require Internet-based telephone services to offer 9-1-1 capabilities while ensuring Internet telephone providers have access to all necessary 9-1-1 infrastructure and technology. This will help ensure that VoIP service can be a safe and effective competitor to standard telephone service.
• Allow localities to retain control of their rights-of-way and ensure local jurisdictions still receive the franchise fees they collected under the current system. Additionally, the FCC will be authorized to step in if a locality tries to unfairly use its rights-of-way authority to block new competitors from entering the local market.
• Allow cities and towns to develop their own broadband networks.
• Require broadband operators take additional steps to ensure their networks aren't used to transmit child pornography.
• Strong anti-discrimination provisions that include fines of up to $500,000 a day and even revocation of franchises.

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