NEED FOR COMPETITION

Benefits of Competition

Thanks to the Wisconsin Video Competition Act, many new cable companies have the opportunity to bring their services to consumers throughout the state. Now that multiple providers will be able to compete for our business, Wisconsin consumers will finally have the chance to enjoy lower prices, improved customer service and innovative video technology - benefits of a more competitive marketplace.

How Competition Works

Before the Video Competition Act was signed into law, local municipalities would negotiate exclusive franchise agreements with just one company. This was a cumbersome and expensive process that blocked market competition and took advantage of consumers.

Now that Wisconsin has statewide franchise laws, municipalities will continue to collect the same dues and fees from the new cable providers as they did under the local franchise agreement system, so towns do not lose income. In fact, because these communities no longer have to spend money on administering franchises, they have more money for municipal services.

About the New Technology

Some new entrants in the cable market offer Internet Protocol Television (IPTV) as an alternative to traditional cable service.

This changing technology allows customers to personalize their viewing experience, like choosing from multiple camera angles, getting statistics during a football game, or receiving news about the celebrities they are currently watching-all with the touch of a finger. You can also videoconference with friends around the country while watching a show together.

The new TV technology comes along with much faster Internet service because the technology uses a high-quality, high-speed fiber optic cable that delivers content to both the customer's TV and computer.

Competition Lowers Prices

According to a Government Accountability Office (GAO) study, cable companies charge 15 to 41 percent less for the exact same programming in areas where they face competition.

Competition Helps the Economy

Investments by new competitors will help local economies by creating more than 1,500 jobs for Wisconsin consumers. In addition, competition is expected to plug hundreds of millions of dollars in new investment into the state.

Individual consumers are projected to save hundreds of dollars a year, savings that will get re-injected into local economies, instead of going out of state to a large cable corporation. At the same time, the number of overall cable customers is expected to grow, meaning that municipalities will collect more in cable fees from the various competitors.

According to a Brookings Institution study, Wisconsin towns and cities could get a combined $4 to $8 million in additional fee revenues a year with cable competition.