Video and Cable Franchising Policy Goals
Video and Cable Franchising Policy Goals
The Digital Infrastructure and Video Competition Act of 2006 (DIVCA) streamlined the video franchising process by assigning the franchising authority to just one government agency, the California Public Utilities Commission (CPUC). The CPUC is the only entity responsible for determining which companies can qualify to become state video franchise holders in California.
Prior to DIVCA’s passage in 2006, video franchises were issued by local government agencies. Companies were required to negotiate with and apply for franchises with multiple local government agencies, a different agency for each county/city it served.
Benefit to Businesses and Consumers
- Increased competition: By creating a new state-issued video franchise process administered by the CPUC to replace the former fractured local system, DIVCA aimed to attract new competitors to the video franchising market. With more franchise holders in the market, consumers benefit from increased choice and prices that are typically lower than in monopoly markets.
- Reduced barriers to market entry: Statewide franchising allows companies to enter the market without needing to negotiate with local franchising agencies, thus allowing them to reach consumers sooner. Applicants only need to apply with the CPUC.
- Faster infrastructure deployment: By removing barriers to entry, DIVCA allows video franchise holders to deploy service in a faster and more expansive way. With increased infrastructure, the CPUC can meet the goals of narrowing the digital divide and benefiting the California economy.
- Increased transparency through data collection: With annual data collection, the public has access to subscription, deployment, and employment information related to video service.
- DIVCA requires compliance with consumer protection rules such as promptly responding to customer calls, service outages, and service termination requests.
Resources
Video Franchising Dashboard Page
The CPUC’s Video Franchising Dashboard provides the most current information on video franchise service areas. The dashboard allows consumers, local governments, and stakeholders to explore where video services are available and better understand how CPUC data supports informed decision-making. Local governments and consumers can use the dashboard to research which video franchise holders offer service in their communities.
If you encounter any issues with the dashboard, please contact videofranchising@cpuc.ca.gov so our team can review and correct them.
Dashboard Link: https://www.arcgis.com/apps/dashboards/2bd1e88b41e34d4db3b2f4a60f35f5c6
History of Video Franchising and DIVCA in California
Legislative Origin
DIVCA became law with the Governor’s approval of Assembly Bill 2987. Prior to DIVCA, local governments throughout California retained local franchising authority to issue video franchises. DIVCA streamlined the franchise application process by assigning the franchising authority to just one government agency, the CPUC. As a result, the CPUC is the sole agency that determines which companies can become franchise holders for video services in California.
Historic Timeline
1965 — FCC Establishes Initial Cable Rules
The Federal Communications Commission (FCC) first established rules for microwave antenna cable systems.
1966 — Rules Expanded to All Cable Systems
The FCC expanded its rules to apply to all cable systems.
1968 — Supreme Court Affirms FCC Authority
The Supreme Court of the United States affirmed the FCC’s jurisdiction over cable in United States v. Southwestern Cable Co.
1972 — Certificate of Compliance Rules
The FCC required operators to obtain a certificate before operating a cable television system or adding a television broadcast signal.
1977 — Franchise Standards Reduced
The FCC removed most franchise standards previously imposed on cable systems.
1978 — Registration Process Adopted
The FCC replaced the certificate of compliance process with a registration process.
1980 — Carriage Restrictions Eliminated
The FCC eliminated distant signal carriage restrictions and syndicated program exclusivity rules.
1983 — Additional Deregulation
The FCC modified or eliminated many remaining cable rules, including its requirement that operators file financial information.
1984 — Cable Communications Policy Act
The United States Congress passed the Cable Communications Policy Act of 1984, which established new policies for franchising, rate regulation, and jurisdictional authority among federal, state, and local governments in the regulation of cable television systems.
1987 — CHCF-A Established
California High-Cost Fund-A was created to help ensure telephone service remains available in rural California through subsidies.
1992 — Federal Competition Act
Congress passed the Cable Television Consumer Protection and Competition Act of 1992 to promote competition among cable providers.
1993 — California Consumer Protection Rules Enacted
California passed the Cable Television and Video Provider Customer Service and Information Act requiring the establishment of service standards, notification to the public of these standards, and annually reporting the performance in meeting these standards. California also passed the Video Customer Service Act establishing specific consumer protection rules for video providers to follow.
1996 — Telecommunications Act of 1996
Congress adopted a national framework to increase competition and promote innovation in telecommunications and information technologies.
2006 — DIVCA Passed
California enacted DIVCA, making the CPUC the sole franchising authority for video services in California.
2007 — Reimbursement Fees Established
The CPUC implemented reimbursement fees under Public Utilities Code Article 4. Video Service Franchises [440-444].
2021 — SB 28 Expands CPUC Authority
California Senate Bill 28 added Public Utilities Code Section 5895, allowing the CPUC to collect granular service-location data and oversee customer service standards and complaints.
2022 — AB 2752 Public Broadband Map
California Assembly Bill 2752 required a public interactive map showing broadband accessibility in California and clarified that actual locations include addresses.