St. Tammany News

Covington officials are hoping to bring competition to the cable network market.

A resolution passed recently by the City Council will open the door for telecommunications companies seeking to provide cable service in the city. It tags on to an agreement passed by the state, which opens up competition in an industry in which cable companies using their own specific agreements dominate many markets. Currently, Charter Communications is the single supplier of cable networking in Covington.

The national telecommunication industry asked 10 states to draft statewide franchise agreements containing language stating that all existing telecommunication companies would abide by the same agreement. All 10 states drew up an agreement, however, Gov. Kathleen Blanco vetoed the Louisiana version.

"In my opinion, it was a very good veto," Councilman Lee Alexius, who introduced the Covington resolution, said. "The agreement was vague and didn't address franchise fees that would be paid to the municipalities."

Blanco has asked representatives of the Louisiana telecommunication and cable industries to craft a more specific agreement that provides municipalities guaranteed payment for use of their rights-of -way. Covington's resolution to support the move is tagged to the newly drafted statewide agreement.

The Louisiana Municipal Association joined Blanco in asking the legislature to pass the newly formed agreement in a show of support to promote competition.

The new statewide agreement will be addressed during the upcoming legislative session.

Current law requires cable companies and other video service providers to negotiate franchise agreements in every municipality where they want to do business. Charter pays Covington five percent of its local profits under the franchise agreement, which expired last year.

Other companies offering competitive services would pay a municipality the same percentage. However, negotiations would be based on competitive consumer rates.

On Dec. 20 2006, the Federal Communications Commission, which regulates interstate and international communications by radio, television, wire, satellite and cable, officially ruled that competition is needed and encouraged, Alexius said.

"A basic package with Charter is up to $50 now for a customer. Ten years ago, it was around $25 and a $2 increase will be tagged onto your next bill," Alexius told the council in regard to Charter's current monopoly of the system.

Companies such as Cleco and Bell South are replacing copper cables with co-axel fiber cable networks throughout Louisiana municipalities to improve their services, thus, giving those companies the option of providing cable television services along with their own services.