By Mitch Lipka, The Philadelphia Inquirer Knight Ridder/Tribune Business News
Apr. 15--New Jersey municipalities will be able to link up to increase their clout in negotiating cable franchises under a new law signed yesterday by Gov. McGreevey.
"By allowing the towns to band together and pool their resources, they are better able to keep their costs lower," said Ellen Mellody, spokeswoman for the governor. "It encourages competitive choices and technological advancement."
The new law also calls for the state Board of Public Utilities to study competition among cable, satellite and other telecommunications providers. Mellody said she did not know how much that study would cost.
A key element of the study is to look at competition for customers by the state's dominant cable companies as well as encourage competition by other telecommunications companies. Comcast and Cablevision are by far the largest providers in the state.
The Board of Public Utilities also is required to examine whether high-speed Internet service should be regulated by the state. If it is, the board would be able to review rates and act on consumer complaints.
Both studies are to be completed within 12 months, said Eric Hartsfield, spokesman for the utilities board.
Under the new law, cable companies are required to keep consumer complaints on file for a year after they are logged. The complaints can be reviewed by the utilities board and must show the date, the nature of the problem, and how and when the situation was resolved.
"This law goes a long way toward removing the stronghold cable companies have had on New Jersey consumers for years," the bill's sponsor, state Sen. Joseph Suliga (D., Union), said in a statement. "Under this law, municipalities will gain greater negotiating power, and cable consumers will gain lower rates through increased competition.
"New Jersey residents have paid through the nose too long for cable services that reek of a monopoly."
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(c) 2003, The Philadelphia Inquirer. Distributed by Knight Ridder/Tribune Business News.
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