The Indiana House of Representatives late Tuesday passed legislation backed by the telephone industry that would replace local franchising with a statewide franchising system. The bill now heads for the desk of Gov. Mitch Daniels, who has said he will sign it.

The Indiana Senate approved the measure Feb. 21.

In a statement, Tim McKone, AT&T’s executive VP for legislative affairs, said the phone giant hopes Congress will now pass legislation to ensure that consumers nationwide will benefit from the lower prices and new services that he said telco entry into the market will ensure.

“AT&T applauds Indiana Gov. Daniels and the Indiana General Assembly for taking bold bipartisan action to pass a progressive telecom reform bill that will benefit the citizens of Indiana for years to come,” Mr. McKone said.

Said Kyle McSlarrow, president and CEO of the National Cable & Telecommunications Association: “If the goal is to promoting broadband for all, this special-interest legislation clearly fails. Nonetheless, Indiana legislators recognized that a level playing field for all providers should be part of the regulatory framework, and the cable industry will continue to vigorously compete to provide all customers the best and most innovative services in America.”