A Mo. state lawmaker—forced to pull a statewide video franchis...

major Mo. cable and telecom providers. State Sen. John Griesheimer (R) introduced SB-284, which would shift video franchising authority from municipalities to the PSC. The measure would give the PSC 30 days to review video franchise applications for completeness. Those with all the required information would be granted. In a crucial 2007 compromise, major cable and phone providers agreed on language obligating large phone companies to make their video services available to at least 25% of households in their service areas within 3 years and to 50% within 6 years, including a specified percentage of homes in low-income areas. New video entrants could meet buildout demands with any type of cable, wireline or terrestrial wireless technology to provide video services, but couldn’t use satellite services to meet buildout duties. Municipalities would be barred from imposing any other deployment requirements. In another compromise, existing municipal franchises automatically would terminate and the incumbent cable operator automatically convert to state franchise terms when a state-franchised competitor enters a market. The bill would cap local franchise fees at 5%, imposing a 5% gross receipts tax on satellite video services to be distributed among municipalities based on population. It would set uniform requirements for public access channels and dispute resolution processes. All video service providers would have to follow FCC emergency alert system regulations by the end of 2007. Officials with the Mo. Cable Telecom Assn. and AT&T said they spent “hundreds of hours” since the end of last year’s session negotiating franchise reform compromises. They said the bill may not satisfy all interests but called it a fair measure for franchise reform. AT&T last year promised to invest $100 million in Mo. if the video bill passed, and a spokesman said he expects that promise to be reaffirmed if this year’s bill passes.