from: New Times [1]

ATT franchise issue not yet resolved

State regulators will continue to review AT&T's application to provide Internet TV despite a federal court ruling Tuesday saying the service should be regulated as a cable franchise.

Beryl Lyons, a Department of Public Utility Control spokeswoman, said the agency is aware of Tuesday's court ruling but, because of a new state law that governs video service, the issue of licensing AT&T as a cable franchise is moot.

AT&T filed an application for a certificate of competition with the DPUC on Monday, the day the law took effect. Lyons said the DPUC is reviewing the application and must make a decision within 45 days.

The new law allows companies to provide video service in competitive markets, which include those with existing cable service. This is the same position AT&T is taking on the court decision.

Despite agreement between regulators and the company, the issue may not be dead. Attorney General Richard Blumenthal said Tuesday the court decision proves AT&T should be regulated like a cable company.

More than two years ago, during a Legislative Appropriations Committee meeting, DPUC chairman Don Downes said the issue of how to regulate video services in Connecticut would become more pressing because television and the Internet were merging. He also said companies were breaking free of their traditional roles as telephone and cable providers and crossing into new service areas.
Mayor Boughton

In 2006, the issue came to a head when the DPUC ruled AT&T's U-Verse was not a cable service, prompting Blumenthal to appeal the decision in federal court. Tuesday's decision seemed to vindicate Blumenthal, but the state's new law makes it unclear what will happen next.

In a press release issued Tuesday night, Blumenthal said his office is considering its next move to "ensure that both AT&T -- and the DPUC -- follow the law in the face of a clear-cut court ruling and obtain a proper cable franchise license."

AT&T spokesman Seth Bloom said his company will continue to comply with the new state law and also considers the court ruling moot.

He said many of Blumenthal's concerns about U-Verse are unfounded, and that the company is not "cherry-picking" wealthier communities but offering the service in economically diverse communities, including Bridgeport.

He noted the new law stipulates a company cannot refuse to offer service based on an area's income.

Rob Varnon can be reached at (203) 330-6216.