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Politics

Fla. bill on cable competition is now tied to phone-rate

Cable industry opposes the revised measure.

By Rebecca Catalanello, Times Staff Writer
Published March 16, 2007

TALLAHASSEE - Hoping to sweeten the appeal of a cable TV bill that has fierce opposition, a Tampa lawmaker is trying to end Florida's largest telephone rate hike.

Rep. Trey Traviesa, R-Tampa, spent Thursday polishing changes to a controversial bill that would make it easier for telephone companies to dip into the cable market.

The biggest change: Traviesa would halt the final phase of a much-maligned telephone-rate increase. In 2003, amid a firestorm of criticism, lawmakers approved a measure to loosen regulation of telephone companies - a move that spurred a three-phase rate hike, the size of which Florida customers had not seen.

"I've seen the gravestones," Traviesa said of the bitter battle over the telephone rate hike that preceded his 2004 election.

He says his measure would save consumers $300-million in future payouts.

But cable industry lobbyist Steve Wilkerson said Traviesa's effort amounts to pretty packaging: "It's the lipstick on the pig," he said.

Under provisions of the 2003 law, ending the rate increases would allow telephone companies to petition the Florida Public Service Commission for further deregulation, PSC spokesman Anthony DeLuise said.

In addition, Traviesa said his rewrite would fold in a provision making it easier for low-income residents to enroll in Lifeline Assistance, a program that gives phone bill credits. Earlier this week, Gov. Charlie Crist and AARP called for lawmakers to support similar Lifeline legislation.

But DeLuise said the agency was working with the Department of Children and Families to enroll eligible participants as they apply for such services as food stamps and Medicaid.

This is the second year that Traviesa has sponsored legislation that would allow telecommunications companies to negotiate a single statewide franchise agreement to deliver television and other broadband services.

Traviesa's bill passed the House and died in a Senate committee last year. This time, it's moving quickly through the House again and could be scheduled for a floor vote next week. Sen. Mike Bennett, R-Bradenton, plans to sponsor a companion bill.

Cable companies oppose the legislation, dubbed the Consumer Choice Act of 2007, arguing that the telecommunications companies should have to strike individual deals with cities and counties to provide services - just as they have to do.

Similarly, consumer advocates and local governments say granting a statewide franchise to telecommunications companies would result in a loss of local oversight. It also would open the door for companies to carve out businesses only in highly profitable areas, leaving poorer neighborhoods without the same options for cable and Internet services as their wealthier counterparts, the critics say.

Sen. Mike Fasano, R-New Port Richey, responded to that criticism this week as he announced a bill to tighten local government control and discourage "cherry-picking" by service providers seeking customers.

The first stop for Fasano's new bill: a committee chaired by Bennett.

[Last modified March 16, 2007, 13:50:33]