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| Competition Encouraged by Cable Franchise Reform
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February 21, 2006
Washington, D.C. -- The Small Business & Entrepreneurship Council (SBE Council), an advocacy and research organization with more than 70,000 members nationwide, commends the U.S. Senate Committee on Commerce, Science, and Transportation for holding a full committee hearing on Video Franchising. The SBE Council hopes the committee's work will lead to greater competition and entrepreneurial opportunities in consumer television services.
"Wherever competition has been allowed and encouraged -- either from a second cableTV operator or when telephone companies provide video -- cable prices have fallen, service has improved, and more program choices have been offered to consumers," said Karen Kerrigan, President & CEO of the SBE Council.
Studies show that competition really is the best form of consumer protection. A General Accounting Office (GAO) study, for example, found that an additional video provider "induce[s] incumbent cable operators to respond by providing more and better services and by reducing rates and offering special deals."
"Small business will benefit from video franchise reform in numerous ways," continued Kerrigan. "Small and independent telephone companies who choose to offer new video service products of their own will be able to compete against the large cable companies - something that can't take place without franchise fee reform. The local sports bar owner, will see lower prices as a result of competing video service providers. The possibilities are endless for small business owners and entrepreneurs, as both consumers and possible new competitors in the marketplace."
According to Kerrigan, the U.S. Senate has a clear opportunity to take action that will empower consumers and encourage growth in our economy.
"Small businesses are all too familiar with the effect of outdated and over burdensome regulatory regimes, and the current franchise fee system is a prime example," she concluded.
About The Small Business & Entrepreneurship Council The SBE Council is a national, nonprofit small business advocacy organization dedicated to protecting small business and promoting entrepreneurship. For more information, please visit its website at www.sbecouncil.org, or call 202-785-0238.
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