Texas Cable Association Statement Regarding Texas House Vote on Telecom Legislation

Texas Cable Association Statement Regarding Texas House Vote on Telecom Legislation

AUSTIN, Texas, July 17 /PRNewswire/ -- The Texas Cable & Telecommunications Association (TCTA) issued the following statement today following a vote by the Texas House:

"Today, sound public policy, regulatory parity and service protections for Texas consumers went out the door with the passage of SB 21," Tom Kinney, chairman of TCTA and president of Time Warner Cable-Austin, said. "With the passage of SB 21 in the Texas House, SBC and other big phone companies achieved unprecedented competitive advantages. Consumers benefit when there is a level playing field. This legislation gives every economic and regulatory advantage to big phone companies.

"SB 21 will raise phone rates, create a complicated dual video franchising system with different and anti-competitive rules for cable and video providers and strip away service quality safeguards and other customer protections."

Kinney continued, "Since 1999, when the Texas Legislature allowed SBC to raise prices on all features except basic service, the company has taken advantage of consumers with rate increases totaling an average of 53%, and for some services, has implemented triple-digit increases. The tremendous rate deregulation provided for in SB 21 should make all Texans who buy phone service from the big phone companies uneasy. AARP opposed this bill for good reason-senior citizens, along with all Texans, are very likely to face increased phone bills.

"Cable's investment has driven competition, innovation, new products and choices-risking private capital with no handouts, subsidies, incentives or special treatment from the government. For a $60-billion company to ask for these kinds of competitive advantages in the video marketplace is hard to fathom."

As passed, SB 21 allows phone companies to set their own rates for residential phone customers. In addition, the legislation shifts the video franchise system from municipal authority to a state-issued system with no study on how this would impact cities or consumers.

Contact: Meg Meo, 512-494-2867 or

mmeo@echristianpr.com

Source: Texas Cable & Telecommunications Association

CONTACT: Meg Meo, +1-512-494-2867 or mmeo@echristianpr.com

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