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from: Sun-Sentinel

Cable franchise deals may shut out AT&T for years in South Florida cities

By IAN KATZ
South Florida Sun-Sentinel
Posted July 11 2007

AT&T's upcoming cable TV service in South Florida could mean more competition in the industry and lower rates for many consumers. But some might not get a chance to see it any time soon.

A few cities, such as Weston, and many condominium associations that have entered into exclusive agreements with other cable providers might have to shut out AT&T until their contracts expire.

While a new state law deregulating the cable TV industry in Florida makes it easier for companies to compete in the same municipality, it also states that current franchise agreements can remain in place. That means residents of Weston, which has a deal with provider Advanced Cable Communications until 2013, might not get to see AT&T's programming until then. The same applies to many condominium associations where residents pay for cable as part of their monthly maintenance fee.

They could subscribe to a different provider, but they would still have to pay the entire maintenance fee.

"They'll be paying twice, but they do have the absolute right to get whatever cable provider they want," said Peter L. Meltzer, a Plantation attorney who deals in community association law.

Most cities, however, have non-exclusive agreements with cable providers. In those cases, "anybody who wants to go in can provide alternative services," AT&T spokesman Don Sadler said Tuesday.

Cities including Delray Beach, Royal Palm Beach, Fort Lauderdale and Miramar have non-exclusive contracts with Comcast Corp., by far the region's largest cable operator. Communities such as Deerfield Beach, Pompano Beach, Oakland Park and Pembroke Park had agreements with Comcast that have expired.

Comcast spokesman Spero Canton said AT&T's announcement was expected and Comcast welcomes competitors.

"The more competition we have, the better for consumers," he said. "We feel very confident that Comcast's infrastructure will compare favorably."

Negotiations over cable franchises are often contentious. Advanced Cable filed a federal lawsuit in 2004 after Weston commissioners proposed making cable subscriptions voluntary for residents. The city settled the dispute last year. Before the settlement, the contract was set to renew automatically every 10 years.

The settlement does not affect residents in Bonaventure, Emerald Estates, Windmill Reserve and Isles of Weston communities because they do not have cable from Advanced.

For years, Boca Raton officials tried to find an alternative cable provider to Comcast and its predecessors, said Deputy City Manager George Brown. The city even issued a nationwide request for proposals, but didn't get any responses from qualified companies, he said.

So the news that AT&T could offer cable services in Boca Raton is welcomed.

In Pembroke Park, Town Manager Robert Levy said the town's contract with Comcast recently ended. He said the two sides were in negotiations to renew the deal, but when the legislation passed, Comcast broke off communication.

"It's going to hurt the customers," Levy said of the state taking control of cable franchise agreements. "Who are you going to call in the state of Florida when you have a problem with your cable? The very absentee state offices?"

In Cooper City, Assistant City Manager Susan Bernard said the city has a contract with Comcast until 2009, and is not considering breaking it.

"We haven't been approached by any other company," she said. "In the past other companies were loath to make the financial commitment to compete."

In Dania Beach, City Manager Ivan Pato said he thinks opening up the market to competition will benefit consumers. For right now, however, he feels better protected by his contract with Comcast than any state legislation. But the legislation, he said, might end up shortchanging the city in revenue.

"What kind of deals can the city negotiate for themselves now?" he said. "I'm not sure I can trust the state to do the best negotiating for me."

Staff Writers Annie Greenberg, Joe Kollin, Susannah Bryan, Erika Slife, Luis Perez and Elizabeth Baier contributed to this report.

Ian Katz can be reached at ikatz@sun-sentinel.com or 954-356-4664.