California Signs New Statewide Law

Digital Prosound:

Gov. Arnold Schwarzenegger signed the new statewide video franchising bill into law late last week, stating the legislation will “add another significant player into the cable television marketplace and help speed the spread of new and innovative technologies across the state.”

New entrants will now apply for a single statewide franchise, to be administered by the state Public Utilities Commission. He signed the bill on Sept. 29.

TWO-YEAR WINDOW

Incumbent cable operators will be able to apply for a state franchise, but not until the PUC has had up to two years to set up a process. The window was created in anticipation of the rush of operators with currently expired franchises, such as Comcast Corp. in San Jose and Time Warner Cable in Los Angeles, who might want to apply for statewide franchises. In two years, an incumbent with an active local agreement may apply for a state franchise after a competitor announces it will launch local cable service.