Triple Play, IPTV, FTTH, Franchises and Television over the Internet

California Commission Order Implementing the Digital Infrastructure and Video Competition Act of 2006 (Click here to view the Commission's order)

On March 1, 2007, California Public Utilities Commission issued its rule making Order No. 06-10-005 implementing the California Digital Infrastructure and Video Competition Act (DIVCA) of 2006. The Commission held that the DIVCA provides that the Commission was to be the "sole franchising authority" for issuing state video franchises in California. The Commission clarified that "video service providers are not public utilities," and a "holder of a state franchise shall not be deemed a public utility as a result of providing video service. . . ." Thus, by determining that the video service providers are not public utilities, the Commission held that it would not allow public consumer utility advocates to participate the application hearing process. In addition, the Commission held that the DIVCA was intended to both (i) "promote the widespread access to the most technologically advanced cable and video services" and (ii) "complement efforts to increase investment in broadband infrastructure and close the digital divide." The Commission imposed the requirement on video service providers to provide "free" broadband and video services at community centers. The League of Cities' objections to the state-wide franching were refuted in the order. The Commission stated its conviction that the DIVCA statute required that it create a process for implementing the state-wide franchising. IPTV and FiOS providers of video service such as Verizon praised the Commission's order.