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N.J. close to state video franchise bill

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New Jersey is on the verge of joining the elite group of states with statewide video franchise agreements. The state Assembly yesterday voted 61-13 to approve a measure that would enable the N.J. Board of Public Utilities to approve statewide video franchises.

That vote follows overwhelming adoption of the measure last week by the state Senate, which must approve it again as a procedural measure before the bill goes to Gov. Jon Corzine, who has not yet indicated if he supports the measure.

The bill would increase cable franchise fees from 2% to 4% in areas where a competitive video service is being marketed to 60% or more of the households. The addition money is intended to fund property tax relief and to subsidize a senior citizen drug program, according to the North Jersey Media Group.

“Today's state Assembly vote is another big step in the right direction. Consumers are now that much closer to seeing the true benefits of competition: more choices, competitive prices and improved cable television services,” said Dennis M. Bone, president of Verizon New Jersey, in a prepared statement. “We applaud the state Assembly for taking this bold step toward opening the state's cable TV market to true choice and competition.”

Verizon has applied for individual video franchises for its FiOS fiber-to-the-premises network in 92 in the state but has not yet won a franchise.

Cablevision, which serves northern New Jersey, continues its opposition to the measure. In a prepared statement, a Cablevision spokesman said it would allow Verizon to pick and choose where it offers service, while increasing cable taxes and curtailing local government control.

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© 2009 Penton Media Inc.

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