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frpm: Beacon news

Cities and AT&T begin negotiation

• Model ordinance: Mayor's Conference seeks accord for all towns in region

By Steve Lord
staff writer

The Metropolitan Mayor's Conference has begun negotiating with AT&T so the company can introduce its Internet-based video services in Chicago-area municipalities.

Offered through a program called Project Lightspeed, AT&T has contacted about 70 Chicago-area municipalities about building node boxes that will bring fiber optic closer to customers, offering a full-range of Internet and voice services, including video.

Many municipalities have balked at approving construction of the boxes, saying they need more information about how to go about it.

Because Project Lightspeed includes video service similar to cable television, municipalities have said they need to be mindful of franchise agreements they already have signed with cable providers.

Those franchise agreements provide for franchise fees, as well as a guarantee the cable providers will serve the entire community. Municipalities have been seeking the same guarantee from AT&T. The company has agreed to pay the equivalent of a franchise fee but balked at guaranteeing community-wide service, saying that would be driven by market forces instead.

Many municipalities in the Chicago area — such as Geneva, Batavia, North Aurora and Carpentersville in Kane County — passed six-month moratoriums on building any of the boxes until they could come to an agreement with AT&T. In most of those towns, AT&T responded by suing, saying the moratoriums violate their business rights under federal telecommunication law, as well as First Amendment rights.

Many municipal officials are hoping the Metropolitan Mayor's Conference, which represents all 272 municipalities in the Chicago region, can put together a model agreement with which all the municipalities and AT&T can live. The conference's Telecommunications Task Force is handling the negotiations.

"The city of Geneva is guardedly optimistic," said Peter Collins, Geneva's information technology manager. "We are hopeful that this gets us somewhere."

"We believe that AT&T is committed to a quick resolution of this issue as well," a Mayor's Conference news release said Friday. "We have already identified an agreement that has been proposed to AT&T by one of the region's municipalities that will serve as the basis for our negotiations."

AT&T also has suggested a memorandum of understanding that is part of the negotiations.

While municipalities are hopeful, they said they still must deal with the AT&T lawsuits. The Geneva City Council Monday night will consider the appointment of the Wheaton-based law firm of Walsh, Knippen, Knight & Pollock to represent the city in the AT&T lawsuit.