The Virginia General Assembly has agreed on a compromise video regulation measure that speeds the entry of telephone companies into video service but requires greater investment on their part.

The new measure, passed by the House of Delegates on Monday and by the Senate last week, now goes to Gov. Timothy Kaine for his signature, which is expected. Kaine’s office helped broker a compromise among the telcos, state cable TV association and municipalities. The final measure didn't entirely thrill any of the three sides, but also didn't get their opposition.

The compromise requires a new cable player to agree to cover 65% of a locality within seven years in order to get a video franchise, and allows local government units to require 80% coverage at a later date.

The Virginia measure also reduces the time required to get a local franchise to as little as 75 days. Verizon has complained that going municipality by municipality can take up to 18 months per franchise.

In a prepared statement, Verizon Virginia President Robert W. Woltz praised the state for joining Texas in pioneering a statewide franchising process.

“With this compromise legislation, Verizon will be able to accelerate investment in our fiber-optic network in Virginia, more quickly adding an awesome FiOS TV component to our reliable voice phone service and blazing-fast FiOS Internet Service,” he said. “No party got all it wanted in the legislation, but the end result is one Verizon believes will stimulate competition, increase consumer choice and provide localities with continued control over their rights of way, consistent with the legal requirements in Virginia.”

Woltz said Verizon will announce future network investment plans in Virginia that “reflect the progressive business environment in the Commonwealth.”

To date, Verizon is delivering FiOS TV in Herndon, Virginia only.

In addition to Verizon, Cavalier Broadband is offering a competitive TV service, using ADSL2+ technology to reach about 150,000 homes in the Richmond area.