Wednesday, December 13, 2006

Video Reform Spurs Fiber to the Home Growth

There is a new study out commissioned by the Fiber to the Home Council indicating that since the passage of the Texas video franchise reform law last year video-enabled fiber to the home (FTTH) has grown faster in Texas than in other parts of the country. This should not be surprising. The report attributes the faster FTTH growth rate to "perceptions that the new law, by ending time-consuming and expensive negotiations with municipalities for franchises, is substantially decreasing the costs of entry and operation, by eliminating unreasonable and unrelated requests during negotiations, and lowering ongoing costs to administer franchise agreements."

The FCC is about to act in its proceeding considering measures it can take to speed up the local franchise process. The new report from the FTTH Council shows why the FCC's efforts in this regard are important, and why the states, in this digital era of broadband competition, should continue their own efforts to reform the franchising process.