Texas clears SBC, Verizon for video

The nation’s largest phone companies scored a Texas-sized victory Wednesday in their march to provide video programs in competition with cable television.

The Texas legislature approved a bill that would enable phone companies such as SBC Communications Inc. and Verizon Communications Inc. to get a single statewide franchise to offer TV over their networks.

A similar bill had been rejected earlier this year, leaving SBC and Verizon the daunting task of getting franchise approval separately from hundreds of municipalities in the state.

Texas, which approved the legislation over objections from the cable television industry, will become the first state to override local control of video franchises if the governor signs the legislation.

SBC plans to launch some video service late this year or early next with a ramp-up occurring in 2006 and 2007.