“Piddle twiddle and resolve, not one darn thing do we solve” said John Adams of Congress in the Broadway musical “1776”. And while this may be true of broadband policy in Congress, not so in the state legislatures.
The list of states acting for consumer choice and robust competition in video is getting longer all the time.
- Missouri’s SB 284 sponsored by Senator John Greisheimer and signed on March 22nd by Governor Matt Blunt . . .
- Florida’s HB 529 sponsored by Representative Trey Traviesa and signed on May 18th by Governor Charlie Crist . . .
- Iowa’s SF 554 sponsored by Senator Roger Stewart and signed on May 29th by Governor Chet Culver . . .
- Georgia’s HB 227 sponsored by Representative Jeff Lewis and signed on May 30th by Governor Sonny Perdue . . .
These states join a list of over a dozen that have enabled the rapid rollout of broadband by removing outdated local video franchise regulations.
The benefits have been obvious. New investment in broadband networks has begun, providing customers with new services, higher capacity and lower prices.
For example, as a result of the passage of Missouri’s legislation AT&T announced that it will be investing $335 million over the next three years beginning in the St. Louis and Kansas City areas and ultimately across the state making television and high-speed Internet service available everywhere.
Also, within days of the passage in Florida, Verizon announced that it was going to pony up a half a billion dollars for a new fiber optics network providing high-speed video, telephone and Internet services.
Just last week the President of IPI, Tom Giovanetti, testified in Ohio before the House Public Utilities Committee, saying, “Video is the key to broadband rollout, because video changes everything. When a company can sell me video and other enhanced services, I’m no longer just a service obligation—I’m a customer. That’s why video is especially important in rolling out broadband to rural and historically underserved communities.” He continued, “States are just as much in competition for investment capital as they are for new manufacturing. Communications investment will logically flow to those states where the environment is most hospitable.”
While communications reform at the federal level has been stalled for several years, wise states are moving ahead. It’s IPI’s projection that significant benefits will accrue to those states that have seized this initiative, both now and in the future.