FCC Approves 90-Day Time Limit on Local Cable Franchising Process

Press Release - March 7, 2007

The U.S. Federal Communications Commission has just officially implemented a new set of rules designed to speed up the cable franchising process and increase competition in the pay-TV market.

This new policy, which was passed in December by a vote of 3-to-2, limits the amount of time a municipality can take to respond to television franchise applications. It is expected to ease the regulatory burden on big telephone companies such as Verizon and AT&T, which are currently rolling out fiber optic broadband and video networks throughout America.

“Telephone companies are investing billions of dollars to upgrade their networks to provide video,” commented FCC Chairman, Kevin Martin, in a prepared statement. “As new providers began actively seeking entry into video markets, we began to hear that some local authorities were making the process of getting franchises unreasonably difficult, despite clear statutory language.”

“The record collected by the Commission in this proceeding cited instances where LFAs sat on applications for more than a year or required extraordinary in kind contributions such as the building of public swimming pools and recreation centers,” Martin explained.

Walter McCormick, who is president and CEO of USTelecom, a trade and lobbying group representing incumbent telephone providers, calls the FCC’s latest ruling “a critical step forward in bringing consumers greater choices, exciting new services and vibrant video competition.”

“We commend Chairman Martin’s steadfast leadership to help spur broadband deployment across the country and appreciate the Commission’s hard work on this important issue,” McCormick commented.

Nine U.S. states have already passed statewide video franchising legislation, in hopes of streamlining the application process and making things easier for new competitors in the video market.