Commentary: Clear the hurdles for video services competition on Long

Long Island Business News, Dec 22, 2006 by LIBN Staff

Federal Communications Commission Chairman Kevin Martin has been on the road in recent weeks espousing the opinion that local governments are unfairly blocking competition for video service. He's right.

In New York, Verizon has to pay huge sums to local towns and villages for rights to operate its new FiOS TV service within their jurisdictions. The telecommunications firm is likely to pay upwards of $1 billion to expand service across Long Island alone.

The FCC should push to move video franchising to the state level, as New Jersey has done.

We're not necessarily advocates of having Washington swoop in and make the littlest decisions for local municipalities. But this is a valid exception. Competition invariably leads to better service for customers and, just as importantly, usually brings down prices. This issue will also help determine how the U.S. telecommunications industry will operate in this sector for decades to come.

Behind much of the fight to keep the process convoluted is Bethpage-based Cablevision, whose Optimum service dominates the Long Island market. Cablevision's argument is that it had to go through the process, so Verizon should, too.

That doesn't fly. It wasn't right then, and it isn't right now.

What makes Cablevision's angst so strange is it's actually the market leader nationwide in adding people to its phone, Internet and television services. Customers have, for the most part, lauded its service, which has stolen customers from Verizon's DSL and phone packages.

Cablevision should be proud of that record and work to improve it, not try to block avenues to competition.