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Press Release

    Tennessee Moves Forward With Cable Franchise Reform Legislation

    03/05/2007

    Tennessee took a major step forward in lowering cable bills and improving service with the introduction of SB1933/HB1421, The Competitive Cable and Video Services Act of 2007. If passed, the legislation will eliminate burdensome franchise laws in Tennessee that are blocking increased competition in the video programming (traditional “cable T.V.”) market.

    Today’s communication market is changing rapidly, with growing competition between phone, wireless, cable, satellite, and other providers. Under the current law companies that want to provide video programming are required to apply for a franchise on a town-by-town basis. This time-consuming and costly process acts as a barrier to competition as the application process is expensive and can take years to complete, preventing consumers form taking full advantage of competition and innovation.

    The Competitive Cable and Video Services Act streamlines the franchise application process for potential providers. It will promote competition while creating incentives to invest in the networks that will place Tennessee at the forefront of the emerging new telecommunications market, which will directly benefit consumers.

    FreedomWorks Chief Economist Dr. Wayne Brough commented:

    “The change in the law will allow more competition in the video programming market. This is good news for consumers, because it means greater choice of providers and the introduction of the most advanced technologies into the Tennessee market. When companies compete to provide service, consumers win through more choices, better service, and competitive prices.”

    The Tennessee campaign is a part of FreedomWorks' national "Choose Your Cable" campaign, an effort in support of broad nationwide telecommunications reform at both the state and federal level through an integrated campaign that includes extensive activist education, targeted grassroots lobbying, and both print and television advertising. To date FreedomWorks efforts have helped to enact cable franchise reform in Texas, Michigan, North Carolina, Indiana, and Kansas.

    FreedomWorks is a national grassroots organization promoting lower taxes, less government, and more freedom nationwide with over 800,000 members.