BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 909|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 445-6614 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 909
Author: Escutia (D) & Perata (D)
Amended: 8/18/05
Vote: 21
SEN. ENERGY, UTIL. & COMMUNICATIONS COMM. : 6-2, 5/03/05
AYES: Alarcon, Bowen, Dunn, Kehoe, Murray, Simitian
NOES: Morrow, Cox
NO VOTE RECORDED: Escutia, Battin, Campbell
SENATE FLOOR : 22-13,05/23/05
AYES: Alarcon, Alquist, Bowen, Cedillo, Chesbro, Ducheny,
Dunn, Escutia, Figueroa, Kehoe, Kuehl, Machado, Migden,
Murray, Ortiz, Perata, Romero, Scott, Simitian, Speier,
Torlakson, Vincent
NOES: Aanestad, Ackerman, Ashburn, Cox, Denham, Dutton,
Hollingsworth, Maldonado, Margett, McClintock, Morrow,
Poochigian, Runner
NO VOTE RECORDED: Battin, Campbell, Florez, Lowenthal,
Soto
ASSEMBLY FLOOR : Not available
SUBJECT : Telecommunications: video services: fair
competition
SOURCE : Author
DIGEST : This bill declares it is state policy to
establish fair competition in the areas of
CONTINUED
SB 909
Page
2
telecommunications and video service.
Assembly Amendments make a technical change.
ANALYSIS : Current law establishes the California's
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, as
follows:
1.Technological advances are allowing telephone
corporations to offer video service over
telecommunications networks.
2.The public interest is served when there is widespread
access to multiple providers that are competing fairly to
offer video service.
3.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 Senate 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
SB 909
Page
3
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
NC:cm 9/8/05 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
**** END ****