Report: Legislation didn't lower rates, aid consumers

LANSING -- A consumer and local government group says Michigan should reinstate more local cable TV regulation, to hold down rates and protect public access channels.

A Michigan law designed to reduce regulation and boost competition among cable TV companies took effect in 2007. But the National Association of Telecommunications Officers and Advisors said the anticipated competition and lower rates haven't materialized. And customer service, it said in a report issued Monday, has worsened.The association is urging lawmakers to correct the problems it says have been created by the law.

It wants a state process for resolving customer service disputes, a requirement that cable firms treat public access channels the same as other channels and the right for local governments to collect a 2 percent fee to cover public access channels.

The Michigan chapter of the organization said that since the law took effect, the number of cable TV companies increased only from 36 to 37, rates are at an all-time high and customers rate cable TV next to the bottom among services -- just above airlines.

"Since cable deregulation in Michigan became effective in 2007, the promises that were made have not been kept," said Sarah Collins, president of the group's Michigan chapter.

Repeated attempts to obtain comments on the report from cable providers were unsuccessful Monday.

The 2007 legislation was intended to address a tidal wave of changes that have resulted in communications giants such as Comcast and AT&T vying for video, land-line phone, cell phone and high-speed Internet customers. It standardized rules and fees for franchise agreements between cable firms and local governments.

Many local officials opposed the legislation, partly because they said it doesn't allow them to collect enough money to cover their costs for televising local governing body meetings or public service announcements.

In the current session, lawmakers are heavily focused on state budget troubles, the foreclosure crisis and proposals to diversify the economy and stem Michigan's rate of job losses.

Cable TV issues rank well below those priorities, but a spokesman for Senate Majority Leader Mike Bishop, R-Rochester, didn't rule out legislative action.

"If details of this report are accurate, if consumers are being hurt, that certainly would rise to the level where we'd take a look at it," said Matt Marsden.