The power to regulate cable service providers soon might be out of cities' hands.
A controversial bill in the Ohio legislature, introduced by Sen. Jeff Jacobson, R-Butler Township, and passed by the Senate, would centralize all cable franchise agreements through the state.
This would increase competition and lower consumers' cable bills
said Greg Saul, Jacobson's legislative aid.
Opponents, however, said the bill would allow cable companies to remove educational, government and public access, or PEG, channels. The Government Channel in Athens, for example, could be moved to a higher tier of service that most cable subscribers don't have, said Scott Thompson, director of TGC 15.
The bill is just wrong from the beginning Thompson said.
In a town with fewer than 50,000 residents, cable companies would have to keep two PEG channels on basic cable, though the companies decide which two channels to keep.
As of now, the approximately 1,400 cable franchise agreements in Ohio are negotiated between municipalities and cable companies, with agreements usually lasting 10 to 15 years.
The cable companies need the use of community right-of-way space ' which means satellite providers are exempt from the law ' and in return, they give a certain percentage of gross revenue, up to 5 percent, to local governments as compensation.
The way it's currently done is a burden on the process Saul said.
The bill would not affect Ohio University's CATVision because that system is a private, not public, system, said Gordon Pettey, the director of operations for residence and auxiliary services.
Jacobson pushed the bill because agreements between companies and municipalities often result in a de facto monopoly, which the Federal Communications Commission banned in 1993.
Athens City Council members said they fear that cable operators will make public access channels less accessible or move PEG channels (those for education, public or government programming) to a higher tier of cable service.
This would potentially take away access for TV and Internet for schools
said Councilwoman Debbie Phillips, D-4th Ward.
The bill underwent revisions after it sparked the ire of other municipalities, and sponsors met with groups representing Cincinnati, Columbus and Cleveland.
We took those concerns into consideration
Saul said.
Thompson and other critics said the changes still fail to meet expectations.
They don't go nearly far enough in making it an acceptable piece of legislation
Thompson said.
Telecommunications giant AT&T also supported the bill, which would allow the company to provide television through phone lines, said Mike Marker, a spokesman for the company. This would create direct competition with Time Warner, the company that supplies the majority of cable access throughout the state and Southeast Ohio.
In the fiscal note prepared by sponsoring senators, local governments can expect potential losses in revenue and an increase in expenditures ' make less and spend more. The state itself speculated it could earn hundreds of thousands more in revenue but would increase expenditures to meet staffing needs.
The bill has moved to the Ohio House of Representatives, where it will be reviewed in the coming weeks.
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