from: OakRidger [1]

AT&T still wants statewide franchises

By: John Huotari | John.huotari@oakridger.com

AT&T is still pursuing legislation that would allow a statewide franchise for video services that could compete with cable television.

If approved, the legislation would keep the giant phone and communications company from having to negotiate individual franchise rights with more than 300 local governments, AT&T officials said.

In Tennessee, cable TV companies like Comcast currently negotiate individual franchises with local governments.

AT&T officials have been traveling across the state, introducing their relatively new Tennessee president and explaining their position on the franchise legislation.

A bill to allow statewide franchises was introduced earlier this year in the General Assembly in Nashville. It did not pass.

“It became a huge fight,” said Gregg Morton, AT&T’s Tennessee president.

The legislation could be taken up again in 2008, although it might include changes.

“We’re trying to remove as many objections as we can,” Morton said.

Citing legislation in other states, Morton said the Tennessee bill would allow competition and choice, which could lead to lower prices.

He said cable rates increased more than 90 percent between 1995 and 2005.

“If our entering the market does nothing but stop the increases, then the customer is better off,” Morton said.

City officials have opposed the statewide franchising bill. In Oak Ridge, a chief concern has been the potential loss in local franchise revenues, worth several hundred thousand dollars a year.

Morton, however, said he does not believe city and county governments would lose money if statewide franchises were implemented. Franchise fees would still go to local governments under the proposed bill, he said.

Morton also said AT&T is not asking for special treatment for its new technology. Cable television providers have had 35 years to develop their systems and have had monopolies for much of that time, he said.

Meanwhile, AT&T has no Tennessee video television customers now and would have to make significant investments to serve them, Morton said.

Countering other local government objections, Morton also said AT&T:

• is not challenging utility right-of-ways,

• would provide access to more public-service channels than cable TV, and

• would not “cherry-pick” customers.

Morton said low-income customers tend to be the best customers because they have less money for other types of entertainment.