from: Connecticut Post [1]

AT&T suit challenges Blumenthal
10/16/2007 11:59:43 PM EDT

HARTFORD — Attorney General Richard Blumenthal blasted AT&T's Tuesday court filing challenging the latest order by Connecticut regulators that would force the telecom giant to get a cable franchise license for its U-Verse TV service.

This sets the stage for a possible showdown between the federal government and the state over regulating television service.

AT&T said late Monday night it would file for a motion to compel the state Department of Public Utility Control to follow a new law that would allow AT&T to market and provide U-Verse to customers under a video certificate, rather than a cable franchise license.

While the company did not say this, it is, in effect, asking the DPUC to ignore a federal court ruling and petitions by Blumenthal and Consumer Counsel Mary Healey.

On Oct. 2, a day after AT&T filed for its video certificate, a federal court ruled AT&T's service needs a cable franchise. On Monday, the DPUC ruled that, because AT&T was not in compliance with federal law, it had to deny the certificate.

AT&T is seeking to reinstate its application.

Late Tuesday, Blumenthal pledged to fight AT&T's suit.