Despite the Texas and Herndon, Va., wins earlier this week, the most important legislative battle for phone companies rolling out IPTV is on the federal front where Congress is considering two bills. Federal legislation to release telecoms from requirements for local franchise approval is their best bet to enable IPTV distribution to as many locations as quickly as possible. Cable TV competitors would be allowed to negotiate a national franchise, still paying fees to local authorities but removing the need to negotiate individually with each local franchise. The argument: telecoms should get the same kind of breaks granted their phone competition.
As Grant Gross reports, one proposed compromise would grant the same national franchise ability to cable operators. But, unlike the cable companies, the telecoms would be allowed to cherrypick customers instead of being compelled to provide service to all.
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