California's legislature passed an amended bill this week, by a vote of 64 to 5, that aims to increase competition among cable television providers and make it easier for telephone companies to enter the market. The bill eliminates city-by-city franchises, which proponents said made it nearly impossible for rivals with new technologies to enter California's market for TV entertainment services.
The bill comes at an opportune time for the telephone and cable companies that are fighting to sign up as many customers as possible for a bundle of services including telephone, cable television and high-speed Internet access. AT&T and other telecom giants have been lobbing to eliminate similar laws requiring franchise deals with municipalities before they are allowed offer TV service.
"California has led the way in the evolution of new technology, and with this bill, our state's policy toward contemporary TV and entertainment technology is catching up to the times," said Assembly Speaker Fabian Nunez, a vocal supporter of the legislation.
In an analyses by the state Senate's Rules Committee, researchers found that more than 60 percent of the state's TV-watching households have cable reception, while 27 percent subscribe to satellite service and the rest use conventional antennae.
Read more about the bill in the CNET News.com article California passes bill easing cable rules.
