Texas Cable Industry Announces Position on HB 789

Texas Cable Industry Announces Position on HB 789

AUSTIN, Texas, March 22 /PRNewswire/ -- Saying that HB 789, authored by Rep. Phil King (R-Weatherford), recognizes the ongoing changes in technology and the increasingly competitive environment for telecommunications providers in Texas, the Texas Cable & Telecommunications Association today called the bill "a step in the right direction" for telecom reform. Cable leaders, meeting in Austin today, said, however, that there are still significant issues that need to be addressed before the Texas Cable & Telecommunications Association can support the legislation wholeheartedly.

HB 789 is slated for debate on the House floor on Wednesday, March 23.

"TCTA appreciates all the work by Chairman King and his staff to craft a bill that attempts to balance the often-competing needs of different service providers," Tom Kinney, TCTA chair, said. "In order to ensure that Texans will be able to enjoy the benefits of competition -- including more choices, innovative products and competitive prices, the law should not favor one provider over another.

Issues still of concern to TCTA leaders include continuation of subsidies to SBC and Verizon, especially the Universal Service Fund, and potential increased regulation of new entrants. The cable industry will also be monitoring closely the issue of incumbent phone companies' ability to cherry- pick high-value customers at the expense of the entire community.

The cable industry is a relatively new player in the telecommunications market, competing with "traditional" telephone companies, as well as other companies offering a wide range of options to Texans.

"Cable has long played a vital role in what people watch on television, and for the past few years, customers have come to rely upon cable's high- speed Internet access. With our recent push into the telephone frontier, we are now able to offer customers the choice of inexpensive, dependable phone service via a cable modem," Kinney said. "This transformation has been possible because, over the past 10 years, our Texas cable operators have invested $2.2 billion to upgrade our networks, using only private capital -- no government incentives, subsidies or guarantees."

The Texas Cable & Telecommunications Association represents 29 cable operators from across the state, including Time Warner Cable, Cox Communications, Comcast, Charter and Northland Communications, among others. These cable operators serve millions of customers in Texas. Franchise fees paid by cable operators to local municipalities total more than $220 million per year. These fees help support local police, fire and other municipal services.

Contact: Elizabeth Christian or Meg Meo

(512) 472-9599

Source: Texas Cable & Telecommunications Association

CONTACT: Elizabeth Christian or Meg Meo, both for Texas Cable & Telecommunications Association, +1-512-472-9599

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