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FCC to Review TV Licensing

From Reuters

U.S. regulators Thursday agreed to review whether they should intervene to ensure telephone companies can easily launch subscription television services without obstacles from local officials.

The Federal Communications Commission voted to seek comment on the extent of its authority over the licensing process, whether new entrants have been stymied by local officials and what steps the agency should take, if any.

Verizon Communications Inc. and SBC Communications Inc., the two largest local U.S. phone carriers, are each rolling out TV services to compete with cable companies such as Comcast Corp. and Time Warner Inc.

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Companies that want to offer video services typically have to obtain licenses -- known as franchises -- from local authorities, a process that can be lengthy. They often have to pay a part of their gross revenues to the cities as well.

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