BILL ANALYSIS 1
SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
MARTHA M. ESCUTIA, CHAIRWOMAN
SB 909 - Escutia Hearing Date:
May 3, 2005 S
As Amended: April 11, 2005 Non-FISCAL
B
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DESCRIPTION
Current law establishes that California telecommunications
policy is to remove the barriers to open and competitive markets
and promote fair product and price competition in a way that
encourages greater efficiency, lower prices and more consumer
choice.
This bill makes numerous findings and declarations, such as:
Technological advances are allowing telephone
corporations to offer video service over telecommunications
networks.
The public interest is served when there is widespread
access to multiple providers that are competing fairly to
offer video service.
It is the intent of the Legislature to establish rules
for the provision of video services that encourage
competition.
This bill declares that it is state policy to establish fair
competition in the areas of telecommunications and video
service.
BACKGROUND
On March 15 the Energy, Utilities and Communications Committee
held a hearing on cable competition. In that hearing
representatives of the major cable and telecommunications
companies described how those two industries were starting to
overlap. Competition between cable and telecommunications
companies over the offering of video service is imminent.
Harmonizing the differing regulatory structures and obligations
of the two industries will be a difficult task. One of the most
difficult of those issues is the scope of the obligation of
video services providers to offer service. Cable operators are
required to offer service within their entire franchised area.
Telephone companies offering an identical service must also
obtain a franchise. But some telephone companies argue that
instead of obtaining a franchise for the entire area of a city,
they should instead be permitted to obtain a franchise for only
the parts of the city where they already provide service. Cable
companies argue this is unfair, and that a "level playing field"
with regard to all facets of telephone and cable regulation must
be established.
COMMENTS
This bill is a small first step to address the cable/telephone
company competition issue. The author indicates that
discussions with the interested parties are continuing in hopes
of dealing with the issue more broadly.
AB 903 (De La Torre) addresses the issue of whether telephone
companies should be permitted to provide video service in areas
smaller than the franchised area of the incumbent cable
operator. That bill is scheduled to be heard on May 2 in the
Assembly Utilities and Commerce Committee.
POSITIONS
Sponsor:
Author
Support:
None on file
Oppose:
None on file
Randy Chinn
SB 909 Analysis
Hearing Date: May 3, 2005