OLR Report 2012-R-0356 explains federal and state law on cable TV competition, specifically whether they permit more than one cable company to serve an area.
Federal law (47 USC § 541 et seq.) specifies how franchising authorities can regulate cable companies. In Connecticut, the Public Utilities Regulatory Authority (PURA), formerly the Department of Public Utility Control, is the franchising authority; in most states, counties, or municipalities issue cable franchises. Under 47 USC § 541, a franchising authority may award one or more franchises within its jurisdiction. It may not grant an exclusive franchise and may not unreasonably refuse to award an additional competitive franchise. Federal law also has provisions designed to promote competition between cable companies, telephone companies providing video services, and direct broadcast satellite companies.
CGS § 16-331 allows PURA to issue more than one franchise in each area. It specifies that (1) each franchise is nonexclusive and (2) each new franchise in any area of the state with an existing franchise may not contain more favorable terms or conditions than those imposed on the existing franchise (other than the length of the franchise). These two provisions were added by PA 92-137, which also allowed municipalities with municipal electric utilities to obtain cable franchises for their service territories.
For more information, read the full report.
