Verizon Lauds FCC Order

WASHINGTON -- The Federal Communications Commission Monday (March 5) released its final written order to increase consumer choice by speeding the entry of new competitors into the cable television market. The Commission acted to streamline the local franchising process through which companies gain local approvals to offer subscription video services. The order was adopted on December 20, 2006. The following statement should be attributed to Marilyn O'Connell, chief marketing officer of Verizon Telecom.

"This decision removes obstacles to the continued aggressive rollout of our all-fiber-optic network and our FiOS TV service. It means that we will be able to reach our goal of rapidly expanding the number of consumers who have a choice of video service providers. Verizon spends more on capital investment than any other American company. It would be difficult to invest so much into broadband and video deployment without common-sense decisions like this one. Chairman Martin has led the commission to a breakthrough for consumers."

In a separate release:

WASHINGTON -- Today’s Federal Communications Commission Order streamlining the video franchising process is a major stride toward competition in multichannel video distribution and accelerated deployment of next-generation broadband networks, the Fiber-to-the-Home (FTTH) Council said.

"We enthusiastically support the FCC’s effort to fix the outdated and anti-competitive video franchising process,” said Joe Savage, President of the FTTH Council. “This Order will help speed up the process of bringing consumers more choice, lower rates, and access to much higher-speed broadband networks."

Last year, eight states joined Texas in enacting laws establishing state-issued video franchises, thereby ending time-consuming and expensive negotiations with municipalities and removing significant barriers to entry for companies that offer video through fiber optic connections directly to the home. Consumers in those states are already seeing significant benefits. For example, a recent study commissioned by the FTTH Council found that video-enabled fiber-to-the-home connections have grown eight times faster in Texas than in the rest of the country after that state’s law was enacted.

“The more fiber that is deployed, the more choices consumers will have in their home entertainment. It’s that simple,” said Savage. “And, given fiber’s huge bandwidth advantages, today’s FCC Order paves the way for a faster rollout of next-generation broadband throughout the country.”

Savage also praised the FCC for initiating a new proceeding to deregulate incumbent cable providers. "We feel that where competitive alternatives exist, it is important to extend deregulation to all participants. There should be a level playing field."