Dear Texas Elected Official:
Public Interest Watch ("PIW") applauds the passage of SB 5, the landmark telecommunications bill that breaks the cable television monopoly in Texas. This legislation sets an example that we hope other states will follow.
For too long, cable companies have enjoyed an unregulated monopoly that has resulted
in higher costs, bad customer service, and limited programming choices for consumers.
Two companies, Comcast and Time Warner, reportedly control as much as 30% of the national
cable television market and, with the pending acquisition of Adelphia, their grip on the
nation's cables consumers will only tighten.
Most consumers have experienced first hand the cable monopoly's arrogant indifference
to its customers, in the form of rate hikes, hours spent on hold with telephone operators
and missed service appointments. However, the most shocking example of the utter lack of
accountability perceived - and enjoyed - by the cable monopoly came recently when a Time
Warner executive offered an implied bribe - in writing - to Rep. Corbin Van Arsdale.
Such hubris stems directly from the cable companies' ability to conduct their affairs
in a consequence-free environment.
By leaving existing cable contracts in tact, SB 5 provides a true free-market solution
to the cable monopoly. If cable companies want to keep their existing customer base,
they will have to start providing superior service at reasonable rates; if
telecommunications companies want to earn significant market share, they will have
to offer a comparable or better deal to Texas consumers. This is the hallmark of a
level playing field.
PIW applauds this sound, responsible legislation.
Sincerely,
Lewis A. Fein
Executive Director
