from: Tri-Cites News [1]

City Raises Concerns Over Controversial Cable Bill

From Tri-Cities News, April 6, 2007
By Nate Morabito

Cable television customers could pay the price if a bill making it’s way through the Tennessee Legislature becomes law according to some Johnson City Commissioners.

AT&T legislation in Tennessee that would change the rules when it comes to providing cable service. The company wants to bring its cable television package to the Volunteer State, but wants to do it differently than the other cable providers.

Tonight, Johnson City Commissioners take issue with that proposal, voicing fears that customers will suffer. Currently, all cable providers answer to local governments. They even have to pay a cable franchise fee to provide service in that community., but if AT&T gets its way, opponents fear cities will lose their control and customers will lose even more.

On tonight’s Johnson City Commission agenda, two resolutions that relate to this bill. The first invites AT&T to apply for a local cable franchise. The other, expresses opposition to the legislation.

Commissioner Jane Myron says if this legislation passes, AT&T will be able to pick and choose where it provides service, likely in the more affluent neighborhoods.

“This will allow the cable companies to cherry pick their customers,” Myron said.

Opponents fear AT&T will discriminate against people like Bobby Garst, who live in average neighborhoods.

“All people should be treated equally,” Garst said. “No people should be treated better because they have money.”

AT&T Spokesperson Ted Wagnon says that is not the case. In fact, he says the legislation prevents discrimination. He says a quarter of the people AT&T will serve nationwide will be in low income homes.

Opponents also worry Comcast and Charter customers like Garst may eventually have to pay more on their monthly cable bills.

“I won’t like it,” Garst said. “I might have my cable took out if it goes up too much.”

AT&T disputes that claim, saying when there is another competitor in the mix, cable rates decrease by 15%.

If this legislation passes, AT&T would pay the state a franchise fee instead of individual cities. Johnson City leaders say when that happens, Johnson City will lose a half-million dollars in revenue.

AT&T argues that fee will eventually be sent on to the cities.

Opponents say local governments will also lose control of their right of ways, meaning cable providers could potentially put huge cable boxes in front of homes.

“We lose quite a bit of control over it,” Myron said. “They come here and they tell us what they’re going to do. We would rather work together and not be told what to do.”

AT&T denies this legislation would change the city’s control over right of ways.

The legislation currently remains in committee. Next week, Tennessee House and Senate Committees will hold joint hearings about the issue.