It looked like another win for phone companies pushing into video distribution when Texas Gov. Rick Perry took time out from Hurrican Katrina relief to sign a pro-telco bill into law last week. The new law would allow SBC and other telcos to set a statewide video distribution deal instead of being forced to negotiate with each local government as is required of cable companies or to provide access to all.
But the law being challenged in federal court by the Texas Cable & Telecommunications Association. The suit in U.S. District Court in Austin claims the law discriminates against cable companies and violates federal law by allowing the phone companies to avoid distribution to some areas.
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