Need. More. TV.

Abstract

While cities understandably want oversight over some aspects of installing this infrastructure, such as digging up neighborhood streets, there is no economic rationale for local franchising of video services. The need to obtain a franchise represents little more than a barrier to entry. Franchise reform is one of the few policies almost guaranteed to increase competition. The FCC is now grappling with the sticky question of how to apply the order to incumbents. If franchise reforms increase efficiency - and by removing regulations not targeted at a market failure they should - then any reforms should apply to all firms in the market, regardless of their historic franchise benefits and obligations. Any franchise reforms granted to the telephone companies should immediately be granted to the cable operators as well. Video franchise reform would not only increase competition for cable TV services, but would also increase the supply of broadband services and demand for it, thus further increasing broadband competition and benefiting consumers.