TESTIMONY
by Michael Simas, Director, Government Affairs on behalf of Kathryn Wylde, President & CEO
PARTNERSHIP FOR NEW YORK CITY

New York, New York
September 7, 2006

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New York City Cable Televison Franchise Authorization

Testimony Before the City Council Subcommittee on Zoning and Franchises

Good morning Chair Avella and members of the Subcommittee. Thank you for the opportunity to testify today in support of this important Resolution, which will lead to increased competition in the cable television market.

The Partnership is an organization comprised of the chief executives of the city’s largest employers. It is committed to working in partnership with government, labor and the non-profit sector to enhance the economy and create jobs.

As you are no doubt aware, there has been tremendous technological growth in the cable industry in recent years. Fiber optics have allowed the industry to offer not only cable television, but also broadband Internet and telephone services through one line. This opportunity to “bundle” services has led to wider access and faster connection speeds at a far lower cost to consumers. While the technology exists to permit greater competition among cable providers, only 1.5% of markets nationally have head-to-head competition for cable television services. This is unfortunate for consumers because national studies by the FCC have shown that in markets where competition exists, cable rates are 27% lower.

Access to broadband services is a key indicator in rating the preparedness of international cities for the 21 st Century. Cities that rate highly in the availability of this technology are more competitive in the global economy. In fact, the Partnership, in conjunction with PricewaterhouseCoopers, will be releasing a study early next month that examines competitive factors among international cities. One of these variables is the use of broadband technology, where New York trails both Paris and Tokyo. Only 66.8% of New Yorkers that are online access the Internet via broadband. In Paris, where a competitive market exists, 85% of Internet users get online with broadband technology.

New York City should be leading the world in the availability of cable and Internet services for its residents. The Resolution before you today will facilitate this process by allowing the city to consider proposals for new cable providers in an equitable manner, consistent with the New York State Public Service Commission’s “level playing field” requirement. We strongly urge the Subcommittee and the entire Council to expedite passage of this important Resolution.