The Texas House on Wednesday gave telecommunications companies approval to enter the cable market in the Lone Star State.
House members voted 144-1 to approve legislation that reforms the state's telecommunications laws and establishes rules encouraging new competitors to enter the TV market. The Texas Senate on Tuesday night also approved the bill. The measure now goes to the governor.
The bill means telcos do not have to obtain the cable TV licenses cablecos have had to acquire.
Companies including SBC Communications Inc. and Verizon Communications Inc. lobbied for passage of the bill.
The legislation “will enable companies like Verizon to compete head-to-head with existing cable providers in the state,” said Steve Banta, southwest region president of Verizon Communications Inc., in a news release. “Consumer choice and competition among video providers will result in new and innovative services and better pricing.”
Banta said Verizon now will offer its FiOS TV services in Texas.
Similarly, SBC Communications Inc. applauded the action. “By passing this bill, lawmakers have encouraged new competitors – using new technologies – to build broadband infrastructure and provide a next-generation video alternative to cable” said SBC Texas President Jan Newton in a prepared statement. “Video represents the next great frontier in our industry.”
The Texas Cable & Telecommunications Association had urged legislators to be cautious in their approach to the bill pushed by SBC and Verizon, warning it could enable companies to pick and choose which customers will receive access to advanced services.
