
August 13, 2007
According to Comcast's recent letter, "state legislators saw fit to fundamentally alter video service providers' complimentary service obligations across the state." Apparently, the cable giant was referencing a new, sweeping state law which essentially deregulated cable service in Michigan. The new statute allows cable operators to ignore many of their existing contractual commitments to local communities, including ongoing obligations to provide cable service to police and fire stations.
"Comcast really missed the mark on this one," said Larry Stoever, City Manager for the City of Saline, Michigan. "In a local government setting, cable service means more than video programming. For example, local governments can use cable as a distance learning tool so police and fire personnel can remain on call at their home station rather than travel to another location for training. It's also a good way to keep local police and fire stations informed about regional and state-wide emergencies."
According to Comcast's letter, it will continue to provide service to one police station and one fire station in each community. But according to Carl Solden, Supervisor for Waterford Township, Michigan, "Even many small to mid- size communities have more than one fire station. Can Comcast really decide that one police or fire station is more important than any other?"
How can Comcast place first responders so far down its priority list? "It's the law of unintended consequences," explained Jon Kreucher, an attorney who practices in communications law. "Some state legislators thought they would be creating more competition in cable. That would have been a good thing, but it really hasn't happened. Only fractional portions of about sixty-five of Michigan's 2,000 communities have a new competitive choice since the law was passed." Although the underlying purpose of the law has not yet been fulfilled, Kreucher noted that the new law "deregulated cable companies right away, before they ever faced any new competition." Consequently, cable companies are now ignoring their existing contracts with local governments and cable rate regulation was eliminated, meaning higher cable prices for consumers.
"Cable prices keep going up and this new law is beginning to cost Michigan's residents in ways our state legislators never considered. It's sad that Comcast is now using the law to target our public servants," Kreucher concluded.
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