08/23 Detroit MI: Cable competition falls short - EDITORIAL

Cable competition falls short - EDITORIAL
Detroit Free Press
August 23, 2009

Just before Christmas 2006, in the dying days of a lame duck session, the Michigan Legislature passed a law that dramatically reduced government regulation of cable TV in the state.  Written largely to the specifications of AT&T, which wanted in on Michigan's lucrative cable market and had made generous campaign contributions to incumbent legislators in both parties in the previous two elections, Public Act 480 stripped local governments of their authority to negotiate the terms of cable service in their communities

In place of local regulation, legislators established a new, one-size-fits-all franchise agreement that allowed AT&T to challenge Michigan's dominant cable provider, Comcast, in markets across the state.  AT&T said its freedom to offer cable service without having to meet conditions imposed by hundreds of different cities and townships would quickly transform Michigan's video landscape, bringing cable customers lower rates and improved service.

Three years later, the reality is much different. The state can do better by its millions of cable customers.  [ more ]