Veto flawed video bill -- part 1 -- jobs

by: William Allen Simpson

Sun Dec 17, 2006 at 17:47:16 PM EST

This bill will likely result in immediate job loss within months, with no guarantee of new jobs in the future.  The Republican state Supreme Court has ruled that promises of jobs are not enforcible, being the "fluff and hyperbole" required to obtain tax breaks and government favors.  Any hope of new jobs is mere speculation, not supported by empirical evidence.

This bill would result in approximately a $47-$57 million revenue impact to local communities, because of a potential loss of franchise fees and in-kind services provided by the current cable company.  A preliminary estimate in October 2006 by local government representatives concluded that in-kind service losses from just eight communities examined totaled 25 million to 35 million dollars.  These services must be replaced, and the additional costs will result in job loss.

Worse, the bill requires that support for the cost of public, education, and government (PEG) access is reduced by a "credit" for "annual maintenance fees" of 5 cents per linear foot.  There are millions of existing linear feet.  Many communities will lose all funding, resulting in additional job loss.

Meanwhile, there is no likelihood for any new jobs.  There is no requirement for additional competition, nor expansion into competitors' areas.  That amendment was defeated (see 2006-SJ-12-12-094 page 2457).

Existing workers are already capable of servicing existing lines, and can be re-trained to service replacements in the same service area.

If the Internet Service Provider (ISP) experience of Bell South is any indicator, many existing employees will not be re-trained.  Instead, they will be laid off, in favor of "independent contractors" (often the same employees hired part-time at lower wages) that have paid for training out of their own pockets.  Service in the South drastically deteriorated in recent years.