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Rules cited as opening for competition
'Shot clock' gives telcos ability to head off delays
Published August 21, 2007 at midnight
ASPEN - A federal regulator on Monday cited new cable-TV franchise rules as an example of the government trying to create new "windows of opportunity for competition."
At a communications summit here, Robert McDowell, who has a seat on the Federal Communications Commission, referred to "video franchise relief" that in part enables telcos to put municipalities on a 90-day "shot clock" to accept or reject a franchise application.
"We've tried to clear out unnecessary underbrush . . . without upsetting the local apple cart," he said at the Aspen Summit.
The annual conference is sponsored by the Progress & Freedom Foundation, a Washington think tank that espouses a market-oriented philosophy. More than 175 people registered for the conference, which attracts industry and government officials.
The FCC's shot-clock rule took effect two weeks ago. As soon as it did, Qwest Communications put the city of Arvada on the clock. If Arvada rejects Qwest's TV franchise application, the issue could be litigated in federal court.
Cable-TV companies such as Comcast have argued that Qwest will selectively choose to serve the wealthiest or newest neighborhoods, and ignore poorer areas, thus increasing the digital divide. Qwest denies those claims.
Arvada Mayor Ken Fellman, also the attorney for a metro Denver consortium of more than 30 municipalities, has been outspoken about local municipalities being able to decide what's best for their own communities.
Also Monday, Dale Jorgenson, a Harvard University professor, discussed how innovation by information technology users such as communications companies helped the U.S. economy avoid going into a "funk" after the dot- com bust of 2000.
Tom Tauke, executive vice president of public affairs for Verizon Communications, gave a couple of examples of how consumers are benefiting from investments in technology.
Just a few years ago, he said, telcos were talking about reaching 25 percent of U.S. households with high-speed Internet connections. Today, he said, 51 percent of U.S. households subscribe to a broadband service.
Wireless is growing the fastest, with several wireless networks now fast enough to deliver video streaming. In another example of the industry explosion, Verizon Wireless customers sent and received 10 billion text messages in July, compared with just 1 million in January 2006, Tauke said.
smithje@RockyMountainNews.com or 303-954-5155
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