Statewide video franchising agreements,enacted in many states, have undermined consumer protections previouslyprovided by local franchising agreements.
Analysisof the effects of statewide video franchises found that consumers in statesthat have enacted statewide franchising laws have seen their cable servicebills go up 8 to 50 percent, depending on the level of service. Further, consumer's complaints, instates with statewide video franchising, remain high with 74% of surveyrespondents reporting no reduction in the level of complaints.
Despite the evidence to the contrary, serviceproviders have argued for years that the streamlined process of statewide videofranchises, instead of local franchising agreements, could have benefits forthe public; such as slightly increasing competition or facilitating a morestrategic statewide universal deployment plan. These providers with interests in breaking into the TV industry, have putintense pressure on legislatures to adopt statewide video franchises. The problem is that industry playersoppose the public interest requirements that always have gone hand-in-hand withfranchise deals.