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from: Times Free Press

Lawmakers discuss amendment in cable bill

Tuesday, April 17, 2007, at 1:38 p.m.

By Andy Sher
Nashville Bureau

NASHVILLE — A Hamilton County lawmaker said he will offer an amendment this afternoon in a House subcommittee that he hopes will ease opposition to a statewide video franchising bill.

Rep. Gerald McCormick, R-Chattanooga, said the provision requires that AT&T and other would-be beneficiaries of the proposed statewide franchising process make video services available to a set percentage of households in communities they wish to serve.

It is an attempt to address “cherry picking” concerns raised by local governments and cable operators who oppose the AT&T-backed bill, said Rep. McCormick who unveiled the proposal in a meeting of the House Utilities, Banking and Small Business Subcommittee this morning.

The Commerce Subcommittee is expected to reconvene late this afternoon to consider the McCormick amendment as well as a 23-page amendment that rewrites many portions of the bill in an effort to soften opposition. AT&T supports that amendment.

AT&T officials said they will not oppose the amendment.

“We don’t feel that it’s necessary, but we’re not going to fight it,” said Jim Spears, AT&T’s chief lobbyist.

Rep. McCormick said his proposal is based on concessions AT&T made to get similar legislation passed in Missouri. He said it will force a new company entering the market to make the service available to 25 percent of their service area within three years and 50 percent within six years.

For example, Rep. McCormick said, a video services company entering a service area with 100,000 customers would have to offer services within three years to at least 25,000 customers. In six years, it would be have to meet a 50,000 target.

AT&T-backed changes, meanwhile, seek to address local government concerns over rights of way, channels set aside for public, education and governmental purposes and consumer rights. Backers of the bill are hoping to move the bill out of subcommittee and into the full Commerce Committee.

E-mail Andy Sher at asher@timesfreepress.com

See tomorrow’s Chattanooga Times Free Press for complete coverage.