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Video Bill Could Help Cable Companies, Consumers

Hearing Set For Tuesday

Updated: 11:29 am CDT March 27, 2007

A state bill would decrease the amount of money local governments receive from cable providers.

Lobbyists for AT&T said that it would benefit consumers by increasing competition.

City officials across the state said the "video franchise" bill would lower their revenue from cable providers up to 30 percent, which could mean cities would have to cut services or increase property taxes.

But supporters of the bill said tha tit would lower the cost of telecast delivery by up to 23 percent and introduce competition.

Under current law, video providers, which are mostly cable companies, pay local governments to let them run cable through public rights of way.

Under the new measure, the state would issue a single statewide franchise and local governments would no longer have a role.

A hearing on the bill is scheduled for Tuesday.
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