By Andy Vuong
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State Rep. David Balmer said Thursday he will introduce legislation that would allow Qwest to seek a statewide cable-franchise agreement.
Qwest currently has to seek franchise agreements with individual municipalities before it can offer video service to compete against cable companies such as Comcast. So far, the Denver-based company has reached agreements with only a few communities in Colorado.
Balmer, a Republican from Centennial, said the legislation is aimed at increasing competition. Balmer said he will introduce the bill "shortly" but has until the end of the month to do so.
The key issue between Qwest and individual municipalities has been network build-out requirements. City leaders want Qwest to offer its video service to every home, a requirement also placed on Comcast, the incumbent cable-TV provider in the metro area. Qwest wants the freedom to pick which neighborhoods it will offer its video service to.
The build-out requirement "is a barrier to competition," said Chuck Ward, Qwest's state president. He said Qwest shouldn't have to build out to every home, because it is the second entrant into the market.
"There is every opportunity for new entrants to enter the market today under the existing rules without any special franchising deals or special legislative loopholes," Comcast spokeswoman Cindy Parsons said.
Darryn Zuehlke, director of Denver's telecommunications office, said the Denver City Council insists that Qwest offer its service to every resident but is flexible on the time frame in which that requirement is met.
Some states, including California, have already passed statewide franchising legislation. Other states in Qwest's 14-state service territory will also likely see similar legislation this year, including Iowa, Minnesota, Utah and Idaho, Ward said. In addition, Qwest's Oregon president Judy Peppler has said a franchising bill will be introduced there this year.
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