from: Tennessean [1]

Consumers have best chance with statewide video franchise
Today's Topic: Sabers rattle over video rights
Thursday, 10/25/07

Our View

As long as Tennessee legislators focus on what's best for consumers, they will be on the right track if and when a renewed battle between AT&T and cable operators erupts next year.

AT&T tried this year to get a statewide franchise system put in place for video services in order to compete with cable. The cable companies, allied with the Tennessee Municipal League, fought the AT&T proposal. After quite a battle, AT&T backed down, but there is strong reason to believe AT&T will make a push again next year. If that happens, lawmakers can expect to hear all sorts of arguments from each side, but if legislators sift through the rhetoric of executives and lobbyists and concentrate on what has the most promise to create competition that could help consumers, that should drive their decision.

By now, the battle has become familiar. AT&T wants to compete with cable to offer video service. But AT&T wants an arrangement for a single statewide franchise, rather than have to go city-by-city, county-by-county, obtaining franchises in what could be a long, laborious process. Cable says if AT&T wants to compete, then it should just compete, as the rules are now, the way cable operators have had to get their franchises. AT&T shows no interest in doing things the way cable wants. To AT&T, it's about streamlining the process. To cable, the change would give AT&T an unfair advantage.

AT&T argues that nearby Georgia, North Carolina, South Carolina and Florida have approved franchise reform. But cable can point to FCC rules that require local governments to decide swiftly, within 90 days, on applications for video service.

No one should expect consumers to cheerlead for either side, because neither business has done much to win friends among consumers through the years. But there should be an expectation that consumers will demand competition, and that is possible more swiftly by establishing a statewide franchise.

Cable's position is like someone who has traveled across the country by train complaining that someone wants to reach the same destination by airplane. Cable wants AT&T to have to get there the hard way. Consumers might have a different take on that. The destination is competition. A statewide franchise system gets there sooner. After that, AT&T would have to win customers.

New faces in the fray

The battle may be an old issue, but some of the faces have changed. The new chief of AT&T in Tennessee is Gregg Morton, who replaced Marty Dickens, who retired. House Commerce Committee Chairman Charles Curtiss, D-Sparta, introduced legislation this year but has said he will not sponsor such legislation next year. A bill this year became laden with amendments. Compromises were offered. Millions of dollars were spent. Assuming someone sponsors a bill, another fight looks likely.

More than 300 cities and counties in Tennessee establish franchises for video providers. That's a lot of customers. Lawmakers should consider what consumers deserve in terms of technology and competition. Instead of focusing on what they're hearing from a telecommunications corporate representative, lawmakers should constantly think most about what's best for that consumer holding the remote. The answer looks more likely through a statewide franchise.