Tuesday, the Texas Republican spoke to three dozen Missourians about the need for more competition in cable television services - even as the state Legislature considers a law allowing telephone providers like AT&T to add video distribution to their services.

The regulatory climate developed over the last few decades inhibits the kind of innovation that new technology offers, Armey said.

“You have change going on in telecommunications and electronics at such a rapid pace that it is virtually impossible to understand what needs to be done,” Armey said in a 40-minute talk. “Local model franchise (regulation) is antiquated. It is a public policy that was designed for another time and another set of technological options.”

A professional economist, Armey now co-chairs the Washington, D.C.,-based group Freedom Works. His luncheon address was organized by several groups, including the state Chamber of Commerce and Industry and the new St. Louis-based Show-Me Institute, that support the legislation allowing telephone companies to provide video services.

The proposed law would have the Public Service Commission, rather than local governments, regulate the services.

The Missouri Cable Telecommunications Association and many local governments oppose the changes, saying telephone providers should meet the same local regulations that cable providers now meet.

“The fact is that SBC/Verizon/AT&T could begin to compete for cable television customers right now (and) go to any of the 553 municipalities in Missouri where they currently offer phone service and negotiate a local franchise agreement,” said Greg Harrison, MCTA president, in a statement on the MCTA Web site. “Instead they want lawmakers in Jefferson City to pass a special law that would benefit only phone companies.”

Armey said: “State after state is seeing the appropriate thing is to have statewide franchising.”

He told reporters statewide regulations still would guarantee universal access to cable services.