Sign in | Register now Like us on FacebookLike Us | Follow us on TwitterFollow Us

Milwaukee's Daily Magazine for Wednesday, May 23, 2012

Wed
Hi: 76
Lo: 59
Thu
Hi: 87
Lo: 63
Fri
Hi: 74
Lo: 57
Advertise on OnMilwaukee.com

Video Competition Act: consumer blessing or complete burden?


Is the Video Competition Act that was recently signed into law in Wisconsin good public policy that will generate true competition for cable television in the state, resulting in lower prices for consumers? Or was the bill pushed through the state government to accommodate AT&T Inc., and will it become a burden for the state's consumers?

For now, the answers to those questions, of course, depend upon whom you are asking.

Five Wisconsin video service providers -- AT&T, Charter Communications, Time Warner Cable, AT&T, CenturyTel and Comcast Cable -- applied for statewide video franchises as a result of the Video Competition Act (VCA).

The Video Competition Act was approved by the State Senate and Assembly and signed into law by Gov. Jim Doyle in December.

"Three months ago, Wisconsin consumers had about as many choices for cable service as they had thumbs on their right hand," said Thad Nation, executive director of TV4US Wisconsin, which bills itself as a "grassroots" organization. Its members include AT&T.

"But with the passage of the Video Competition Act, it's looking more and more likely that cable subscribers will have a real choice as to who they get their service from in the near future."

AT&T received approval for its franchise from the Wisconsin Department of Financial Institutions last week. It should be noted that Charter, Time Warner, Century Tel and Comcast are not members of TV4US Wisconsin.

The new law allows companies to apply for statewide video franchises, "eliminating the monopoly" the cable companies enjoyed, Nation said.

If the other applications are approved, Charter, Time Warner, Comcast and CenturyTel will join AT&T in being able to provide their video services to any municipality in the state, "creating a system of real competition that will lower prices, improve customer service, and lead to new and better technologies for consumers," Nation said.

"It looks like the monopolistic reign of the state's cable companies is finally coming to an end, and that news couldn't some soon enough for Wisconsin consumers," Nation said. "With cable prices continuing to rise, Wisconsin residents are due for some much-needed relief. We look forward to additional franchise applications so consumers can take full advantage of the benefits that competition provides."

Robert Chernow, a Milwaukee businessman who is the retired chairman of the Regional Telecommunication Commission (RTC) and the North Suburban Communication Commission, is a long-time advocate for Wisconsin municipalities in their negotiations with large communication corporations.

Chernow has a very different opinion about the impact of the Video Competition Act.

"AT&T and cable have always had the ability to do business in every Wisconsin community. They only needed to apply for a franchise that would not redline and would protect the public's safety. A single model contract could have been negotiated for much of the state. So, to say that the Video Competition Act initiates real competition is false. To state that that there was a monopoly is a lie. It appears as if AT&T and others now believe their own manipulated and phony advertisements.

"Wisconsin consumers will end up paying more, not less, as prices go up. Local communities will no longer have oversight. Even issues like AT&T's dangerous exploding cabinets will be ignored, in my opinion, because the state will allow firms like AT&T to do what they wish. In essence, AT&T bought this legislation through expensive lobbying, false advertising, significant campaign contributions and other manipulation of Wisconsin's legislature. This is bad public policy."

Thank you gentlemen. Both sides are now on the record. We'll check back a year from now and see how we're all doing.


Talkbacks

Subzero | March 6, 2008 at 1:13 p.m. (report)

Wisconsin residents can choose ANY cellular phone service, yet I don't see a reduction in rates because of this.

Rate this:
  • Average rating: 0.0
  • 1
  • 2
  • 3
  • 4
  • 5

brunocarlson | March 6, 2008 at 11:46 a.m. (report)

This is great, but when will we see this come about? TWC just changed my DVR's guide screen now so I can not see all information about a movie or show. I am not happy when I need to wait 45-60 minutes for someone to tell me that this is a pilot rogram and that they will change the formats based on the information. I asked wher eI can vote and they said that I am inelligible. What the hell?!??! They changed it. I will be more than happy to change as soon as the competition comes to town but when will that be? When my remote control rental fee reaches a dollar per month? Or when I ned to get new furniture because the cable guy was too big to fit behind the TV and broke my lovely IKEA entertainment center? This need to be sooner than later for an actual turn around. TWC knows they have us in their grips and there is nothing we can do. We need this now!

Rate this:
  • Average rating: 0.0
  • 1
  • 2
  • 3
  • 4
  • 5
2 comments about this article.
Post a comment / write a review.

Facebook Comments

Disclaimer: Please note that Facebook comments are posted through Facebook and cannot be approved, edited or declined by OnMilwaukee.com. The opinions expressed in Facebook comments do not necessarily reflect those of OnMilwaukee.com or its staff.