This is a printer friendly version of an article from www.thedailytimes.com
To print this article open the file menu and choose Print.
Article published Jul 2, 2008 AT&T plans $400 million investment in statewide cable
By Robert Norris of The Daily Times Staff
It didn't take long for AT&T to get through to the Tennessee Regulatory Authority.
On Tuesday — day one of a new state law allowing companies to bypass the old system that required individual cable permits for each city or community — AT T applied for a statewide cable television franchise.
AT T announced plans to spend $400 million to upgrade its fiber network in Tennessee for its U-verse package, which delivers TV content to consumers using the Internet rather than through traditional cable or broadcast formats.
The application comes after millions of dollars spent to lobby the General Assembly and for advertising during a two-year battle in Nashville that pitted AT T against existing cable companies and local governments.
Assistant city managers for both Alcoa and Maryville represented the cities' interests in negotiations to revise the bill as originally proposed.
"The cities, through the legislative process, have helped to shape and had input into the final bill in order to protect local citizens. This would be in requiring franchise fees and rights of way and build-out requirements," Maryville City Manager Greg McClain said Monday.
Maryville Assistant City Manager Roger Campbell said the law gives a company two years after being granted a franchise to start building its cable system.
Local governments will not be aware of a state-franchised cable company's plans until it contacts the planning department for a permit to work in the right of way, according to Campbell.
"The only thing we don't know yet (about the process) is how the state will get the franchise money to the cities," Campbell said.
Alcoa City Manager Bill Hammon said the cities of Maryville and Alcoa had worked closely together to ensure they could apply all existing city standards to a state-franchised firm.
"I think we were able to preserve the integrity of what we do. Some other legislation would have been less robust," Hammon said.
Installation in new subdivisions would be a relatively simple process. Putting new cable in an Alcoa Highway-type environment means dealing with sewer, natural gas lines, electric (above and below ground), existing cable, drain tiles and driveways, Hammon said.
As a result of working on the legislation, he said Alcoa will re-evaluate its system for permitting right of way work to make sure it is consistent.
Hammon said it will be interesting to see if AT T cherry-picks higher density, more profitable areas to serve while leaving rural areas without service.
Mayor is skeptical
Blount County Mayor Jerry Cunningham said it is too early to tell if giving AT T a statewide franchise will benefit customers. He did mention the company has a track record.
"I hope they're better at this than they have been at phone service. If it dovetails what they did on phone service, all we can look at is rate increase after rate increase," he said.
A recent call of his came to mind.
"The other day the phone rang and rang and rang, and they said for $1.50 they will dial it again for me."
Cunningham said it troubled him that this is a case of local authority being transferred to Nashville.
"If it goes the way it usually does in Nashville, it will just fall into a black hole."
While saying it is premature to pass judgment on the new cable TV landscape, Cunningham has doubts about the outcome.
"I'm skeptical. Their whole history is to create a monopoly," he said.