State needs to end cable-tv monopoly

Businesses and their employees thrive when markets are open, but when governments protect a monopoly, consumers and employers alike suffer.

One industry -- cable TV -- has captured unwarranted amounts of discretionary earnings from consumers for years. The culprit -- government-sanctioned monopolies and Byzantine regulatory processes that protect monopolies.

Antiquated requirements that new entrants negotiate individual franchises with every city, village and town they hope to serve have discouraged competitors large and small from entering the market.

Until now. As new technologies to compete with cable have reached prime time, many states across the country are similarly updating their regulatory framework for home video services.

States passing video reform

Rather than keeping useless government barriers to competition in place, nearly 20 states have passed video franchise reform bills. These bills encourage competition to cable TV by simplifying the video franchising process.

Instead of having to negotiate separate franchises with hundreds of different municipalities in each state, new providers are allowed to receive one franchise in a state. This avoids protracted negotiations and the impossible task of trying to negotiate with hundreds of communities in a state simultaneously.

As a result, consumers get the benefits of competition they deserve much quicker.

Businesses, except for monopolies, and consumers value real competition. Consumers like it when businesses compete for their dollar, with consumers voting their preferences with their wallets. And companies in the Dane County region and elsewhere in the state, including members of the Independent Business Association of Wisconsin, like it when consumers have more money to spend.

Rates up 93 percent

But when monopoly pricing is in place, consumers pay artificially high prices. Monopoly cable companies have raised rates 93 percent over 10 years, the FCC has found.

Consumers will save significant amounts of money if real competition is encouraged in Wisconsin. With extra dollars in their pockets to spend, Wisconsin consumers will be able to increase their savings or buy other goods and services.

This not only benefits consumers. More discretionary dollars in the hands of families in the Dane County area and the rest of Wisconsin also benefits businesses and their employees all across our state.

Video regulatory reform has passed and is bearing fruit across the country, in large states such as California and Texas; in smaller states such as Connecticut and Kansas; and in Midwestern states surrounding Wisconsin such as Indiana, Ohio, Michigan and Illinois.

Reform on slow track

The Wisconsin Assembly passed a similar bill months ago, but the bill hasn't even been scheduled yet in the state Senate.

Our state motto, "Forward Wisconsin," should be our motto for video.

So far, video reform in Wisconsin is on the slow track, while states around us seize the initiative for their consumers and businesses.

We're hopeful that Wisconsin elected officials will soon act. It's time we gave our consumers real savings by joining other states in knocking down outdated regulations.

Let's move forward, Wisconsin, and finally pass the Wisconsin Video Competition Act.

Robert Collison is immediate past president and the current chairman of the Legislative Committee for the Independent Business Association of Wisconsin. It is an organization of small to mid-size independent businesses throughout Wisconsin. Mr. Collison owns and operates Kendall-Collison, Inc.