Baldwin Says Cable Franchise Bill Hurts Consumers, Cities

Baldwin Says Cable Franchise Bill Hurts Consumers, Cities

Congresswoman Tammy Baldwin voiced her opposition to the first major overhaul of the federal Communications Act since 1996, which was passed by the House yesterday. The bill makes significant changes to rules related to cable television and Internet services.

Intended to increase cable competition, the Communications Opportunity, Promotion, and Enhancement Act of 2006 (COPE) (H.R. 5252), establishes national cable franchises, stripping states and localities of their authority to both establish and enforce consumer protections and customer service standards in the cable industry.

"In this digital age, a bill on delivery of video communication services has enormous ramifications on the deployment of broadband Internet services and voice communication. Given how central all of these are to our economy, our democracy and our educational system, we must make sure that the promise of universal service does not fall by the wayside," Baldwin said. Baldwin says she agrees with the "ends," but not the "means" of achieving cable competition. "We know that robust competition can improve customer services, reduce pricing, and spark innovation and technological advances. But this legislation does not contain adequate safeguards and requirements to ensure that the benefits of increased competition are shared as widely as possible," Baldwin said.

Baldwin said the bill also fails in other important aspects, in that it awards rights-of-way control to the FCC rather than local governments; weakens funding support for local public access channels; and weakens anti-discrimination language. Baldwin expressed deep concern that the bill backs away from the tenet of universal service to all citizens. "While anti-redlining language is included in the bill, other provisions in the bill render it toothless," she noted.

Most disappointing, the bill fails to insure what is called the network neutrality of the Internet, which is a prohibition on high-speed Internet providers to discriminate against certain types of content, either in pricing or the speed of delivery. Thus, a service provider could have a financial incentive to offer consumers access to a particular website at a lower price or a greater speed than other, competing websites. Net neutrality has been crucial to the development of innovative and competitive broadband content and services and plays a key role in keeping the information super-highway open to all.

Baldwin led efforts to eliminate another major objection to the bill: the unfunded mandate. Of particular concern to communities in Wisconsin and around the country, the bill imposes a big financial hit to budgets of local governments. During consideration of the rule for floor debate on the bill, Baldwin raised a point of order against provisions that would limit the fees that local governments can charge companies that want to offer video services in a specific market.

Citing a Congressional Budget Office (CBO) analysis, Baldwin said the bill would cause some municipalities to receive significantly less in fee revenue. That cut in income would amount to an unfunded mandate, she reasoned. Under House rules, as established by the much-publicized Republican "Contract with America," unfunded mandates are prohibited. Over her objection, the bill was considered and passed.

"Sadly, this bill is yet another example of well-connected, special interests winning favor over average Americans," Baldwin said. "When will it end?"

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