Will Telco TV Reach the Trailer Park? Posted Mon Aug 28, 2006, 9:27 AM ET

To speed the entry of the telephone companies into the video-delivery business, Congress is in the midst of rewriting the franchising rules, substituting national for local authority. Conspicuously absent from the national franchise legislation soon to hit the Senate floor is any mention of "buildout"—that is, an explicit requirement that new video providers serve all homes in a locale. Instead the bill would require the FCC to gather information on patterns of deployment and make an annual report to Congress, flagging any patterns of discrimination. Would that relatively relaxed regulatory approach make it easy for telcos to ignore poor folk? Verizon CEO Ivan Seidenberg flatly denies it: "We have never engaged in redlining or cherry-picking, and we never will. It is a violation of federal law, and it runs counter to our 100-year legacy of great service to customers. Our deployment strategy speaks for itself. We are serving diverse communities in every state where we are building our FTTP network, and the cable industry's claim is yet another red herring aimed at stifling choice and competition." Media activists will be watching closely. To be continued tomorrow.

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