No status quo for cable companies

By Greg Harrison

The president of the Missouri Chamber of Commerce misleads your readers in his opinion piece ("Cable status quo," April 8) by implying that a video-franchising bill in the Missouri Senate would "eliminate the obstacles to true competition" in the offering of cable-TV services.

The fact of the matter is true competition in the video marketplace exists now. Satellite services offer plenty of competition to cable companies and, in fact, have captured a significant percentage of market share in this state. This stiff competition is one of the reasons why most of Missouri's 25 cable companies have invested nearly $5 billion in their systems in the last decade. Fiber-optic systems are now the rule, bringing digital signals to the home and offering consumer benefits to meet the competitive challenges offered by satellite and telephone companies.

AT&T, which heavily supports new cable franchising legislation in Jefferson City, is trying to play catch-up. Since 1996, federal telecom law has allowed the phone giant to jump into the video business. Congress declared that cable-TV franchises could not be exclusive and that communities had to provide franchises to any and all competitors -- including phone companies -- on an equal basis. But instead of jumping into the marketplace, making system upgrades and seeking local franchise agreements, the phone company delayed.

When AT&T finally decided to enter the video market, its solution was typical for the Bell operating companies: to introduce special-interest legislation changing the rules of the game in their favor. But Missouri legislators are not buying it. And that is a good thing for Missouri. Here's why:

Under the current franchising system, cities and counties across the state are working hand in hand to deliver quality cable service to Missourians. Local franchise agreements provide mechanisms for input from the community regarding quality control, programming and operating issues. But local cable companies have provided much more than operational input. They have provided valuable services that the phone companies want to eliminate.

Public-access channels (public, educational and government programming -- or PEG channels) are offered to local communities under many franchise agreements, providing valuable programming for civic and not-for-profit groups that benefit many in the community. Emergency alert systems are also provided, not to mention free cable service to schools, libraries and local government facilities.

Missouri cable companies welcome competition from the phone companies. In fact, it is our belief that high-speed Internet service and quality digital video services should be available to all.

Our vision is clearly explained in a Web site that we invite all to see at www. broadbandeverywhere.com.

Despite what the Missouri chamber president would have you believe, there is no status quo in the cable business. We are constantly moving forward, upgrading our systems and offering Missourians quality programming at an affordable price. We've taken the time to go city by city -- 553 in all -- to enter into franchise agreements that meet the needs of the local communities we serve.

Instead of spending hundreds of thousands of dollars on lobbyists and advertising, we invite AT&T to meet us in the marketplace. The law says it can do so now. All it needs to do is play by the rules already in place. The only thing stopping AT&T from offering video services in Missouri is AT&T.

Greg Harrison is president of the Missouri Cable Telecommunications Association in Jefferson City, Mo.