California Moves to Change Cable Laws

The California Assembly voted Wednesday to ease cable rules to eliminate city-by-city franchises, thus making it easier for phone companies to offer alternative services. The cable industry had been using the law as a way to stymie competition, phone companies have asserted. The bill passed on a 70-0 vote, with 10 members not present

While lauded by companies like AT&T, which praised the move, the cable industry warned that the bill could have negative consequences. Dennis Mangers, president of the California Cable and Telecommunications Association, warned that if government was not careful, the state could "screw up" the telecommunications industry. The proposal must still pass the state Senate, as well as be signed by Governor Arnold Schwarzenegger before it becomes law.