Connecticut Gov. Jodi Rell (R) signed a bill shifting video franc...
Connecticut Gov. Jodi Rell (R) signed a bill shifting video franchising from municipalities to the Department of Public Utility Control (DPUC). That makes Connecticut the eighth state this year to overhaul video franchising. HB- 7182, which takes effect October…
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1, gives the DPUC 30 days to act on franchise applications. Incumbent cable providers can seek a state franchise to replace existing local franchises 30 days after a new entrant begins service. “An injection of healthy competition into this market will benefit consumers in the long run,” Rell said. “Competition should result in better service and more reasonable rates, and states that have passed similar bills are measuring the success in thousands of new jobs.” The law extends the video franchising requirement to all landline delivery technologies, including IP-based, which means AT&T needs a state franchise for its U-verse video system though the DPUC last year declared it is not cable service. AT&T can keep operating while its application is pending. AT&T and other state-franchised video providers face no buildout requirements, but the law requires the DPUC to review deployment of state-franchised video services after three years and report its findings to the 2011 legislature. The law requires new video entrants to match public access channel capacity of the incumbent within 120 days of starting service, and to provide financial support for community access facilities. The law shifts video consumer protection to the companies and the state. It directs service providers to develop internal means of resolving customer complaints about billing and service issues. If the company does not resolve a problem, the customer can seek nonbinding mediation through the DPUC. If mediation fails, the customer can complain formally to the DPUC. Unless preempted by federal law, this measure requires state-franchised video providers to give the DPUC 30 days’ notice of programming and rate changes. All video providers must give new customers a detailed description of rates, terms, services, billing practices and complaint processes. The law raises the state video gross receipts tax to 5.5 percent from 5 percent, extending it to AT&T video services. It exempts state- franchised video service providers from paying business personal property taxes for 3 years on new gear they install. This is a big break for AT&T, which plans to invest $335 million in new facilities.