Don’t Forget About Wireline Deregulation in the Age of 5G
Tom Struble, manager of the technology and innovation team at R Street Institute, told TPAF that he understands some fees and permitting for local governments are necessary, given that there are some costs to localities as cable providers upgrade infrastructure, “but they can be streamlined and modernized.”
He pointed out there were an estimated 3 million cord cutters in 2018 who stopped subscribing to cable services. That decreased revenue, combined with onerous franchise fees, will put a strain on the costs to provide video services, he said.
Struble agrees that franchise fees are “huge barriers to entry,” especially with the quid pro quo efforts by local governments demanding those in-kind services.
“Governments get too many concessions from companies trying to do business,” he said. “That’s the biggest issue that’s ripe for regulatory reform. I think we need to rethink that system.”