For instance, in the video-services market, new entrants (like companies offering IPTV�¢â?¬â?Internet Protocol Television) are forced to negotiate franchise fees with over 33,000 local boards across the country. That unreasonable burden is a perfect example of a regulatory scheme that drains resources from businesses, drives up prices, and ultimately deprives consumers of a competitive choice.

Lowering the tax and regulatory liability these companies face in today’s global economy will lead to greater competition in the telecommunications industry. Fortunately, consumer-friendly legislation is being considered in Congress that will reduce some of these hurdles and finally allow more participants in the telecommunications market.

For example, Senator John Ensign has introduced the “Broadband Investment and Consumer Choice Act” that, among other things, will permit new video providers to enter the marketplace without having to obtain thousands of approvals from municipalities across the country. Despite what you may hear from local elected officials and the big cable companies, this legislation ensures that city and county governments will continue to be compensated for rights-of-way and guaranteed public education and government access channels.

If the cable companies don’t like this legislation, it is probably because they have been able to raise prices on captive customers at will. In fact, cable rates have increased 45 percent since the 1996 Telecommunications Act was passed, or more than three times the rate of inflation! The market is ripe for some healthy competition.