Note: The reality of "competition=lower prices" finally sets in - too late. It really means the prices are "competitive" meaning the same. In addition PEG channels bear a greater cost with less income. And eventually the entry level price for 'basic cable' will skyrocket because once a competitor enters a local market the FCC will lift local municipal authority over the regulation of basic cable pricing.

from: Farmington Enterprise [1]

Cable franchise fall-out: Local officials learn more about AT&T
Thursday, May 24th, 2007

If you’re looking for cheap cable service, you might want to do some serious comparisons between local cable providers and AT&T’s new U-verse service, being rolled out in this area now.

State lawmakers blazed a trail for the communications giant with a telecommunications bill passed during the 2007 legislative session, with the idea of opening up the field of cable providers to encourage competition. The new law set up a state-wide franchise agreement, taking local cable franchise agreements out of the hands of city officials. All three cities involved in the Southwest Oakland Cable Commission - Farmington, Farmington Hills and Novi - have reluctantly signed provider agreements with AT&T.

At the Southwest Oakland Cable Commission’s May 23 meeting, Carmen Johnson, External Communications Director, outlined the services AT&T will offer locally, which include packages of television and internet service that vary in price based both on the internet speed of service and the number of channels desired, which will include premium channels. The lowest priced package AT&T offers is approximately $55; Bright House offers a basic cable package that includes only Detroit area and local PEG channels for $12. Hills City Councilmember Jerry Ellis asked about the cost of a variety of packages that are comparable to those offered by Bright House, the current provider.

“Those prices sound a little higher than or equal to what Bright House offers,” Ellis said.

“That’s what competition is all about,” Johnson responded.

Ellis shot back, “I thought competition was supposed to bring the price down.”

But the real challenge may be what cities have to do to get their meetings broadcast over AT&T’s service.

Eric Angott, SWOCC’s video operations manager, said there will be channel fees for public access, education and government (PEG) access that could total $1,600 monthly. In addition, the cities would have to install new encoders at $5,000 each. And technically speaking, that will not ensure live broadcast of cable and commission meetings. Angott said he is still in discussions with AT&T to resolve those technical issues.

Farmington Hills city manager Steve Brock believes because Bright House currently provides equipment to acquire those broadcasts, AT&T must do the same and bear the cost of installation. SWOCC staff believes that’s not likely to happen. In addition, PEG channels won’t be separated in AT&T’s line-up. Viewers will surf to one channel, from which they can select from a menu of government, school and public access programming. Ingott said the signals will be degraded and come through with a poor picture on the television screen.

Sue Cobb, who works with Farmington Schools on their channel, TV-10, said adding another cost burden to the school district, which has already had to cut TV-10’s budget due to funding shortfalls. She said she would like to see the same cable drops from AT&T that Bright House provides. Farmington Schools representatives will meet with Carmen on June 6 10 a.m. to go through some of those things.

The May 23 SWOCC meeting will be re-broadcast on local government and public access channels. For a schedule, visit www.swoccstudios.com