Local government officials said Tuesday they would welcome AT&T and Verizon offering video service in their communities to compete with the local cable system. But they argued the current legislation the telephone companies argue they need to make the service work would actually allow them to refuse service in some communities.

AT&T has argued the bills (HB 5895 and SB 1157) would make it easier for them to provide the service by standardizing franchise agreements statewide. But the local officials said the standardized agreements, as proposed in the bills, would not include service guarantees or investment guarantees that many local agreements with cable companies now include.

"Fair competition makes sense for everyone, not just a select few," said Grand Blanc Mayor Michael Matheny, president of the Michigan Municipal League.

"Local communities believe all residents matter and local officials are not going to let some big phone companies say they don't," said Farmington Hills Mayor Vicki Barnett.

But officials with FreedomWorks said the changes were needed to ensure competition in the state.

"American families are stuck with annual price increases imposed by cable providers operating without effective local competition," said Dick Armey, chair of FreedomWorks. "Competition, not regulation, provides innovation, choice, and lower prices. We have seen this in the telephone voice market, and we could see the same thing in the video programming market if we eliminate outdated regulations."

Mr. Armey said a similar change in Texas led to cuts in cable rates 25 percent of the state's communities.