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State Representative Michael Beard
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-8872
For more information contact: Jodi Boyne 651-296-0640
LETTER TO THE EDITOR
BEARD: Misguided cable law prevents competition and lower prices
To the Editor,
The latest lawsuit filed by Mediacom against the City of Prior Lake for allowing a cable TV franchise agreement with Integra Telecom clearly spells out the need to repeal a misguided state law that drives up your monthly cable bill. Currently, cities are prohibited from negotiating any new cable deals that are not exactly like the deal they negotiated with their existing incumbent cable franchisee.
This has done nothing more than create a monopoly for preferred cable companies and eliminate competition and the possibility of lower prices for consumers. Studies show that a lack of cable competition is a major reason why cable prices have risen 86 percent in the past 10 years. And in areas where competition exists, cable rates are 15 percent lower. All that is standing in the way is the government; one small line of law that was inserted into a telecom bill in the middle of the night way back in the mid-1980's.
I’m a firm believer in free markets and open competition for your business. That’s why I have, on two different occasions, sponsored legislation that would repeal this anti-competitive law. My bill would allow local governments to negotiate deals that would be in the best interests of their own communities. They could cover only part – not all – of the city’s coverage area, allow for additional or different service patterns, or negotiate other requirements to enhance value to the customer. Breaking the de facto monopoly that currently exists would greatly reduce a new company’s up-front investment before landing their first customer, add local jobs, and give cable customers new options, likely at lower prices. Plus, it would have the effect of leveling the playing field somewhat. Currently cable companies are unregulated and can offer telephone service with out any franchise agreement or PUC assigned service areas, while regulated telephone companies, like Integra, are prohibited from offering video services to compete with cable companies, or from offering telephone service outside of their assigned service area. For example, the north side of Prior Lake is served by Qwest, making it impossible for Integra to serve that side of the Lake.
Competition works. That’s why we have more than one grocery store, more than one department store and more than one car dealer in nearly every community. Eliminating the cable monopoly law would eventually level the playing field, likely create an infusion of local investment in our economy, and undoubtedly lower cable, telephone, and internet prices for Prior Lake residents. It should be a no-brainer during the 2010 legislative session, where once again I will ask my colleagues to revisit this issue.
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