from: Multichannel News [1]

Milwaukee Continues to Talk to AT&T But Moves Ahead With Lawsuit

While the city of Milwaukee remains staunchly behind its decision to sue AT&T over the telco’s refusal to seek a local cable franchise for its U-Verse service, city officials are continuing talks to settle the issue.

Milwaukee filed a federal lawsuit against AT&T Wisconsin after the telco refused to seek a franchise. AT&T doesn’t believe its U-Verse service requires a franchise because it’s not a cable service.

“We think their service is a cable service and they don’t,” assistant city attorney Vince Moschella told Focus on Customer Care.

“We’re moving ahead on three fronts. We continue to talk to AT&T. We’re following through with our lawsuit and we’re interested in having the legislature take a position.”

That last tactic has its risks. Several states have opted in recent months to take local oversight of cable franchisees out of the cities’ hands. Moschella doesn’t believe Wisconsin’s legislature will move to change telecommunications law this year.

The city is also seeking an injunction preventing AT&T from installing more underground fiber and from providing any customer in Milwaukee with the U-Verse service. Attorney and court fees are also being sought.

Milwaukee is the first city to sue AT&T over the delivery of U-Verse. But other communities have fought to have the service available to consumers without a franchise. Cities in Illinois, including Roselle, Wheaton and Carpentersville, either claimed a moratorium on issuing siting permits for U-Verse infrastructure, or denied the permits outright.

AT&T sued Walnut Creek, Calif., when that city asserted AT&T needed a cable franchise. But in April, federal Judge Maxine Chesney declined to rule whether IP video is a cable service. But she did state that cities could seek franchises because the Telecommunications Act of 1996 does not exclude them from doing so.

Cities in Illinois, including Roselle, Wheaton and Carpentersville, either have claimed a moratorium on issuing siting permits for U-Verse infrastructure, or denied the telco’s permits outright. AT&T sued those cities in federal court in that state, challenging the rights of the cities to regulate. Those suits are still pending.