Friday, September 09, 2005

Texas cable group challenges telecoms video law

Via Reuters.

A Texas cable association on Thursday challenged a state law that would make it easier for local telephone companies like SBC Communications Inc. to offer video service to consumers.

The Texas Cable & Telecommunications Association said it filed a lawsuit in U.S. District Court in Austin seeking to invalidate the law, which was signed by Texas Gov. Rick Perry on Wednesday.

The law allows SBC and other local phone companies to get statewide permission to deliver subscription television services. Cable companies typically have had to get franchises from each city where they want to offer service and cable companies, like Time Warner Inc., opposed the bill.


"Competition can't flourish when businesses offering the same services are treated differently, for no reason. And without true competition, consumers don't benefit," said Tom Kinney, chairman of the TCTA board and president of Time Warner Cable's Austin division.

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