The Illinois House of Representatives passed SB 678, an AT&T backed effort to avoid local franchising to provide cable and internet service. While further action is considered in Springfield, public interest groups responded with cautious optimism.
“AT&T had hoped for favored status in the cable and internet market while avoiding consumer protection standards,” said Brian Imus, Director of Illinois PIRG, a non-profit public interest group. “Fortunately, that didn’t happen and the legislature is now considering a bill with significant consumer protections.”
The original bill also threatened Public Educational and Government Television (PEG). “We started with a goal of preventing anything that hurt PEG channels to provide service to the public,” said Peter Skosey, Chairman of CAN-TV. “The current bill does no harm to PEG channels.”
Concerns remain about the development of adequate competition. The bill requires AT&T build out to just 35 percent of it’s customers in 3 years. There is no guarantee of further build out beyond that.
“This bill is a step in the right direction,” said Ben Scott, policy director of Free Press, the nonpartisan media reform group. “But we remain concerned that this legislation does not include adequate build-out requirements. The benefits of competition and better communications networks should flow to all citizens of Illinois.”
“If adequate build-out doesn’t occur, consumers will pay the price with poor cable competition and legislators will have enacted a law that actually widens the digital divide,” said Imus.
“Despite the rhetoric that this will mean lower prices, Illinoisans shouldn’t count on it. That hasn’t been the case in other states,” said Imus. “Without substantial build-out provisions this new strong Cable/Telephone duopoly will be able to exact any price they like from consumers.”
