from: Daily Herald [1]

Cable plan riles towns, Proponents say more competition would result

BY HARRY HITZEMAN
Daily Herald Staff Writer
Posted Saturday, April 07, 2007

Springfield lawmakers expect changes to a controversial bill that cities fear will give companies like AT&T carte blanche over where large utility boxes are located.

But proponents say the Cable and Video Competition Law of 2007, or HB 1500, is a way to give consumers more choice and eliminate the antiquated rules used to award cable television franchises.

State Rep. Timothy Schmitz, a Batavia Republican and a member of a committee reviewing the bill, said lawmakers are far from a final vote.

"The one you first saw, the one the cities first saw, will not be the version we vote on," said Schmitz, whose district includes Geneva. "The important thing is that it's still a work in progress."

Rick West/rwest@dailyherald.com Geneva is preparing for a battle over a bill that city leaders say could give telephone companies carte blanche over where large utility boxes are placed. City leaders have tried to illustrate this with a large box outside city hall.
City leaders say if HB 1500 is approved, it could enable companies like AT&T to install the boxes anywhere they please.

"That demonstration has drawn more people's attention to read the legislation," said Geneva Mayor Kevin Burns.

The utility boxes are much larger than conventional cable and telephone utility boxes typically located in neighborhood backyards. They house equipment needed for AT&T's Project Lightspeed, a plan to deliver video and television over the Internet.

What the bill seeks to do is give phone companies the ability to deliver television over phone lines without having to go to individual cities and villages to hash out local agreements.

Proponents say giving the Illinois Commerce Commission this power will lead to more competition and choice for consumers, create jobs and cut out the arduous process to gain approval from towns.

But municipal leaders in Geneva and beyond believe the measure will destroy local control over franchises, allow phone companies to serve wealthier customers instead of everyone, infringe upon private property and city right of way with unsightly boxes, and leave people in the dark if they want to complain about poor service or outages.

They say the phone companies won't operate under the same rules that cable companies do.

"We're welcome to competition, but it has got to be done in a way that's fair to all players," Burns said.

Schmitz said he supports at least two recent revisions to the bill: providing a way for customers to complain and removing a provision that allows companies to use private land or city right of way over objections.

Lawmakers are expected to resume discussions the week of April 16.

In addition to Schmitz, several other suburban lawmakers are on the committee that could hold the proposal's future: state Rep. Carolyn Krause, a Mount Prospect Republican; state Rep. Sidney Mathias, a Buffalo Grove Republican; state Rep. James Meyer, a Naperville Repubican; state Rep. JoAnn Osmond, an Antioch Republican, and state Rep. Harry Ramey Jr., a Carol Stream Republican.

Osmond and Ramey are among the sponsors of the legislation in question, as is state Rep. Michael Tryon, a Crystal Lake Republican.

Rob Biederman, AT&T spokesman, said the current franchising system is broken, and "consumers are the ones who are paying the price."

"This process discourages competition. It allows the cable monopolies to survive," Biederman said, adding it has taken the company 18 months to negotiate agreements with just seven towns.

He also noted the company will work with towns to place boxes in appropriate locations, cities will still receive franchise fees, and cable rates have increased exponentially over the years.

Representatives from the Cable Television Association have said the bill is an attempt by phone companies to alter the current rules in their favor.

AT&T has sued several municipalities and villages over their refusal to allow Project Lightspeed to proceed.

Geneva city attorney Charles Radovich said the towns, including North Aurora, Itasca, Wheaton, Carpentersville, Wood Dale and Itasca, have filed a motion in federal court to dismiss the lawsuit.

No ruling date has been set, he said.

hhitzeman@dailyherald.com

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