# The CABLE Competition Act: What It Means for Cable TV and Internet

This bill makes it easier for cable companies to change hands by removing a major hurdle they currently face. Right now, when a cable company wants to sell its business to someone else, local governments (called "franchising authorities") can require approval before the sale goes through. This bill would eliminate that approval requirement, meaning cable companies could transfer ownership to new buyers without getting the local government's permission first. The only thing local governments could still do is ask to be notified about the sale within 15 days after it happens.

The bill also addresses what happens when a cable franchise is taken away. If a local government denies a cable company's renewal or revokes its franchise for breaking the rules, and then takes over the cable system or sells it to someone else, the bill requires that any sale happen at fair market value. This prevents local governments from essentially getting a free asset when they take over a cable system. The one exception is when a franchise is denied renewal—in that case, the value of the franchise itself doesn't count toward the price, only the equipment and infrastructure.

For everyday people, this could mean cable companies might be bought and sold more frequently, potentially leading to service changes or different companies operating in your area. The bill takes effect six months after it becomes law and applies to both new cable franchises and existing ones that are still active at that time. The main goal appears to be reducing local government control over cable company ownership changes, which supporters argue could increase competition and efficiency in the cable industry.

CABLE Competition Act

Burgess, Michael C.

Consumer Access to Broadband for Local Economies and Competition Act or the CABLE Competition Act This bill revises the valuation of a cable system upon its sale or transfer, and it modifies the process for transferring a cable franchise to a person to whom such franchise was not initially granted. Specifically, the bill requires that after the denial of a franchise renewal or the revocation of a franchise for cause, any subsequent acquisition or transfer must be at fair market value. Further, the bill prohibits a cable franchising authority from (1) precluding the transfer of a cable franchise from a cable operator to a person to whom such franchise was not initially granted, or (2) requiring a cable operator that was initially granted a franchise to receive approval from the franchising authority for such a transfer. However, a franchising authority is authorized to require a cable operator to notify the authority of such a transfer.