The Republican-backed bill that would allow telephone companies to offer nationwide television-based video services - and so challenge cable companies - faces an initial public hearing March 30, BrandWeek reports (via MediaBuyerPlanner). Under the bill, Verizon and AT&T, among others, would gain the ability to own national video licenses, called franchises, which would give them the right to offer any community their multichannel video over high-speed fiber lines for a 5 percent franchising fee.

Verizon is now offering CBS Television VOD content on Verizon FiOS TV, its new fiber-optic TV service, which is available in parts of seven states. FiOS TV offers a level of interaction with television that consumers haven't seen before.

"Competition drives down prices and encourages innovation," said House speaker Rep. Dennis Hastert (R-Illinios) in a statement released with a draft of the bill Monday. Democrats have not released any formal statement concerning the bill.