- Media Advisory -

October 20, 2008

channelAustin
1143 Northwestern Avenue, Austin, TX 78702
512-478-8600
www.channelaustin.org

Media Contact: Stefan Wray, 512-478-8600 x 13

Texas Cable Association Lawsuit Hearing Set for Nov. 14

Austin, TX – A Texas cable industry lawsuit now being litigated in US District Court could bring additional negative consequences to Texas public access television stations already hurting from a 2005 cable franchise law.

On November 14, 2008, US District Court Judge Lee Yeakel hears oral arguments for a summary judgment in a lawsuit brought by the Texas Cable Association against the Public Utility Commission of Texas (Texas Cable Association v. Smitherman, et al).

This case was on hold until the U.S. 5th Circuit Court of Appeals ruled in February 2008 that the cable association could move forward with its lawsuit.

The lawsuit asserts that the “Act Relating to Furthering Competition in the Communications Industry,” S.B. 5, 79th Leg., 2d Sess. (Texas 2005), violates federal and state constitutional and statutory law in that it discriminates against cable operators.

This 2005 legislation, known more commonly as SB 5, and now part of the Public Utility Regulatory Act, eliminated the system of local municipalities being able to negotiate franchise agreements with cable and video providers. The new law, driven largely by AT&T lobbyists, created a statewide franchising system administered by the PUC.

However, the new law stated that municipal agreements existing at the time of the laws’ passage must stay in force until the original expiration date of the agreement. The exception is for providers representing a small market share.

This provision has been the bone of contention for the cable industry, but it’s been the saving grace for public access TV stations in Texas cities with long-term agreements. The cable industry argues that this has given an unfair boost to new entrants into the video market, namely companies like AT&T and Verizon.

Public access television stations, such as channelAustin and the Dallas iMedia Network, have been thankful that local franchise agreements in Austin and Dallas remain in force, because when they expire then earmarked operating funds written in to the agreements also go away.

SB 5 has several provisions that enable the continued existence of Public, Education, and Government access channels; a provision for guaranteed operation funds is not among them.

Currently, Austin’s municipal franchise agreement is set to expire in 2011. If the Texas Cable Association prevails in its lawsuit, then Austin could face an earlier expiration date. Continued funding for public access television in Austin is then at the discretion of City Council.

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