Save Access

from: Journal Sentinel

City fears loss of cable pacts
Will providers opt out if state bill passes?

By STEVEN WALTERS
swalters@journalsentinel.com
Posted: Nov. 6, 2007

Madison - Milwaukee's cable franchise administrator said Tuesday he expects that AT&T and Time Warner would opt out of their city contracts and apply for state-issued franchises, if a bill up for a Senate vote this week becomes law.

City Clerk Ron Leonhardt called the Assembly-passed cable deregulation bill "weak" and warned that it could result in cuts in services and in payments to the city.

In a statement, Milwaukee Mayor Tom Barrett said state-issued cable franchises could jeopardize current payments to the city. But AT&T and Time Warner of Wisconsin "have pledged their continued commitment to the city," Barrett said.

"Time Warner and AT&T are keenly aware of the importance the city places on our respective working relationships, and I don't believe either company would want to see the Legislature pass a bill that would jeopardize those relationships," Barrett said.

Weeks ago, Barrett and other city officials - including Common Council President Willie Hines Jr and Ald. Michael D'Amato - called for the Assembly-passed bill to be rewritten to reflect a new Illinois law. Local government officials in Wisconsin say the Illinois law has stronger consumer protections and guarantees permanent funding for their local-access channels.

State Sen. Jeff Plale (D-South Milwaukee), sponsor of the bill before the Senate on Thursday, said it contains consumer protections that are as strong as the Illinois law, a version of which also will be debated Thursday.

Plale said he did not know if AT&T and Time Warner would try to end their city contracts, if his bill were to become law.

AT&T signed a three-year contract with Milwaukee in April. Time Warner signed a 17-year pact with the city in 2000, Leonhardt said.

Leonhardt said state-issued franchises would require much less of AT&T and Time Warner "in terms of customer protection (and) auditing requirements."

Celeste Flynn, public affairs director for Time Warner of Wisconsin, said a system of state-issued franchises would mean that "all of us would be competing under the same rules."

Flynn and AT&T spokesman Jeff Bentoff also noted that cable and telecommunication companies now pay local governments up to 5% of their receipts, and that subsidy would continue under the Assembly-passed bill. But that bill would also phase out separate subsidies for local public-access channels over three years - another change opposed by local government officials.

Asked if AT&T would opt out of its new contract and apply for state-issued franchises if the bill became law, Bentoff said: "At this time, it's uncertain if a video bill will become law or what form it will take. Therefore, it's premature to speculate how the agreement between AT&T and the City of Milwaukee would be affected by the new legislation.

"It's important to recognize that the bill gives Milwaukee and Wisconsin residents something they truly desire - more choices and competition for video service."