- - - - - - - - - - Action Alert! - - - - - - - - -

Suddenly, there’s a lot of talk in the State Capitol about telecommunications reform. However, there isn’t much reform in sight -- just more business as usual.

Later this month, the California State Senate will consider AB 2987, a bill that was hurriedly passed by the Assembly during a late-night session on May 31. 

The driving force behind AB 2987 is the telephone industry.  They want your elected state officials to believe that AB 2987 is the only way for us to get better, quicker, more effective competition to cable.

Here’s the truth: This isn’t about competition. In fact, telephone companies can compete today under the current rules. But they want to play by their own rules.

An army of lobbyists, backed by millions of dollars in deceptive advertising and campaign contributions, is working to convince our legislators that what is good for the telephone industry is good for all of us.

But the telephone industry goodies in AB 2987 could destroy PEG Access in California!

Don't let the telephone industry speak for you. Carefully review the “Talking Points” on the next page. Contact your Senators and speak for yourself. You have to live with the result.

Here’s what you need to do -- right now:

1.    Fax or e-mail the letter at the end of this Action Alert to the California Senate Energy Utilities And Communications Committee, the next stop for AB 2987.  Fax numbers and email addresses for the members of this important Committee are listed later in this Action Alert.

2.    Contact your State Senator.  Urge them to VOTE NO on AB 2987.  Fax or e-mail the Action Alert letter to your State Senator.  If you don’t know who your State Senator is, look it up at www.sen.ca.gov.

TALKING POINTS ABOUT AB 2987

·         Minimum Number of PEG Channels and Elimination of Non-Activated Channels:

AB 2987 restricts the number of Public, Education and Government (PEG) channels to those that are currently activated.  This ignores instances where cities and counties have agreements that may require the cable operator to provide additional PEG channels in the future. If a community has no active PEG channels, AB 2987 could permit them to get no more than three.

·         Burdensome Requirements for Additional PEG Channels:

AB 2987 eliminates any current franchise obligations regarding additional PEG channels.  Instead, it restricts the availability of additional PEG channels unless an unspecified amount of programming is provided.  AB 2987 also excludes “televised public meetings or classes in an accredited learning institution” from being counted toward the activation of an additional PEG channel!

·         Funding and In-Kind Support for Public, Educational & Government Access (PEG) & I-Nets:

Under AB 2987, many communities will lose funding to support PEG access.  It ignores the fact that cities and counties have negotiated agreements with cable operators that require them to provide PEG funding support for expenses in addition to capital costs.  Any PEG funding support currently received for purposes other than capital costs will be lost under AB 2987. 

At the expiration of existing franchises, AB 2987 limits the amount of PEG and I-Net funding to the lower of 1% of gross revenues or the level of support that was in the existing franchise.  As a result, the loss for many communities is 35-50% of their current funding; others lose more than 75%!  This means that thriving PEG activities in many communities would grind to a crashing halt!

When the current franchise expires, the bill excludes preservation of in-kind services that are currently provided, such as remote location feeds, I-Nets, and guarantees that PEG programming will be listed in all print and electronic channel guides provided to subscribers.  Furthermore, in-kind support such as cable services to public buildings (e.g., City Hall, school buildings, and libraries) is only preserved until the end of the current franchise.  AB 2987 does not require a telephone company receiving a State franchise to provide such services to schools, city or county buildings or libraries at all!

·         Limits Competition Through Lack of “Build-Out” Requirements:

AB 2987 limits the number of residents who will ever have the choice of a competitive video service, or even video service itself. The bill also allows video providers to select which neighborhoods will and which neighborhoods won’t get video service.  It does this by failing to include a “build out” requirement that a video provider will bring competitive service to all residents of a community by a specific date.  The bottom line is that without a build out requirement, some residents in each community will not receive video services under AB 2987 from new operators. And, as soon as existing cable operators get a state franchise when their current agreements expire, they will be relieved of any obligations they had to serve some areas of our communities.

·         Franchise Enforcement and Consumer Protection:

AB 2987 removes franchising authority from local governments and directs the California Department of Consumer Affairs to grant and enforce state franchises -- but provides no funding for the agency to assume these responsibilities!  In addition, the enforcement authority given to the Department is very limited. Therefore, if consumers or local agencies had a complaint, they would have to settle it in court.

CALIFORNIA SENATE ENERGY UTILITIES AND COMMUNICATIONS COMMITTEE:

Chair:  Martha Escutia (D - Montebello)                email:  Senator.Escutia@sen.ca.gov

Senate District 30                                                     Fax:     (916) 327-8755

Vice-Chair:  Dave Cox (R - Fair Oaks)                 email:  Senator.Cox@sen.ca.gov

Senate District 1                                                       Fax:     (916) 324-2913

Richard Alarcon (D - San Fernando Valley)          email:  Senator.Alarcon@sen.ca.gov

Senate District 20                                                     Fax:     (916) 324-6645

James Battin (R - La Quinta)                                   email:  Senator.Battin@sen.ca.gov

Senate District 37                                                     Fax:     (916) 327-2187

Debra Bowen (D - Redondo Beach)          email:  Senator.Bowen@sen.ca.gov

Senate District 28                                                     Fax:     (916) 323-6056

Joseph Dunn (D - Garden Grove)                           email:  Senator.Dunn@sen.ca.gov

Senate District 34                                                     Fax:     (916) 323-2323

Robert Dutton (R - Rancho Cucamonga)               email:  Senator.Dutton@sen.ca.gov

Senate District 31                                                     Fax:     (916) 327-2272

Christine Kehoe (D - San Diego)                            email:  Senator.Kehoe@sen.ca.gov

Senate District 39                                                     Fax:     (916) 327-2188

Kevin Murray (D - Los Angeles)                              email:  Senator.Murray@sen.ca.gov

Senate District 26                                                     Fax:     (916) 445-8899

Joe Simitian (D - Palo Alto)                                     email:  Senator.Simitian@sen.ca.gov

Senate District 11                                                     Fax:     (916) 323-4529

Senator __________

State Capitol, Room _____

Sacramento, CA. 95814

RE:  AB2987(Nunez/Levine).  Cable and Video Service - OPPOSE

Dear Senator ________:

I oppose AB 2987 (Nunez/Levine) as rushed through the Assembly.  I am disappointed that efforts were not made to address the proposed legislation’s major flaws, as identified by local governments, community media supporters, and public interest groups.  Recalling the lessons learned from the mistakes made when energy deregulation swept through the State Capitol in 1996, legislation of this impact should be deliberately considered and carefully discussed with all interested parties, rather than being rushed through without adequate public input.

Please vote NO on AB 2987, which prevents real choice for ALL Californians.  It harms our communities by taking away their existing rights in cable franchise negotiations with huge, out-of-state corporations.  But AB 2987 doesn't stop there.

AB 2987 allows phone companies like AT&T to ignore what it calls "low-value" customers, who can't afford to pay over $100 per month for video & telecommunication services.  These are the very people who are already underserved by broadband services!  But AB 2987 doesn't stop there.

AB 2987 severely harms our public, educational and government (PEG) access operations, many of which are already very under-funded.  Throughout California, communities have negotiated franchises that require their cable companies to provide PEG access channels (in amounts based on demonstrated need) that offer educational programming, coverage of local government meetings, important public safety information, and a vital opportunity for citizens to express their concerns and beliefs.  Many communities have carefully negotiated on behalf of their residents to also ensure that their cable companies provide adequate funding and other resources to ensure the successful operation of these PEG channels.  But AB 2987 doesn't stop there.

AB 2987 crushes the right of many communities to negotiate future improvements in the amount of PEG access channels, funding and resources to be provided to their citizens. 

AB 2987 destroys the local negotiation model that has worked so well for so many of our communities.  It replaces it with a statewide franchise that limits PEG channels and funding to a meager "one-size-fits-all" approach.

I urge you to address these concerns in the Assembly-passed version of AB 2987.  The interests of ALL Californians must be considered.

Greater consumer choice is important; ensuring equity and the well-being of our communities is essential.

Sincerely,