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Texas says no to Verizon's pay-TV plans
By LOUIS HAU
Published June 6, 2005
Verizon Communications' hopes of jump-starting its planned rollout of pay-TV services fell flat last week when Texas legislators failed to pass rules that would have allowed phone companies to seek permission from the state to offer TV services.
Under existing laws, cable companies have to reach franchise agreements with municipalities and counties. These agreements allow companies to sell pay-TV services in exchange for providing public-access channels, free service to government offices and other givebacks.
But negotiating these deals takes time. To speed things along, Verizon and SBC Communications, the other major phone company in Texas, were hoping the state would set a precedent of allowing companies to negotiate franchise agreements at the state level.
No such luck.
State-level franchising would help phone companies reach market faster with pay-TV services, while shifting the venue for negotiations from the local level to state capitals, where phone companies maintain large numbers of lobbyists.
Verizon has held internal discussions about whether to seek state-level franchising in Florida, but it hasn't sought legislation that would allow it, company spokesman Bob Elek says. Not surprisingly, Bright House Networks, which has franchise agreements in place, supports keeping franchise talks at the local level.
[Last modified June 6, 2005, 01:34:12]
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