TN: Chamber Discusses Video Franchise Bill

Posted on November 17, 2007 - 11:22am.

from: Herald-News

Chamber Discusses Video Franchise Bill

November 14, 2007
By John B. Carpenter

The Dayton Chamber of Commerce Board of Directors stopped short of a formal endorsement of video franchising reform legislation Monday but generally expressed approval for AT&T’s bid for a statewide franchise to provide TV programming over its existing network of telephone lines.

Patsy Hazelwood, vice president for AT&T’s East Tennessee division, spoke to the chamber board about the legislation pending before the Tennessee General Assembly.

She said AT&T can provide all the TV programming currently carried on cable over its statewide telephone network, reaching many homes not accessible to cable. Twenty states have already adopted similar statewide franchise legislation, including Georgia, Florida, North and South Carolina, Hazelwood said.

“We want to make a $350-million investment in Tennessee over the next three years to give our customers an option when it comes to TV programming,” she said.

Tennessee has over 400 separate governmental bodies that AT&T will have to negotiate with separately if the legislature does not pass the bill. Hazelwood said that negotiation process typically takes about 13 months for each entity.

Contrary to early reports, Hazelwood said the legislation guarantees that governmental entities like Rhea County, Dayton, Spring City and Graysville would not lose any franchise fees. The bill would guarantee that all franchise fees would be paid directly to the local entity rather than going first to the state.

“Rural communities will actually get a better deal under this legislation,” she said.

Hazelwood said the average cost of cable TV service increased 95 percent between 1995 and 2005, yet in areas where there is competition for the delivery of TV programming, cable rates have dropped 15-40 percent.

“This legislation will drive a competitive alternative to cable TV,” Hazelwood said. “If we don’t do this we will be at a competitive disadvantage to neighboring states in three years.”

The new technology that AT&T plans to employ would allow Rhea County residents in many areas not currently served by Charter Communications cable to receive TV programming over their existing phone lines, according to Hazelwood. It might also push Charter to be more aggressive in expanding its coverage area.

“The city would get more franchise fees and sales tax under this legislation,” said board member Ronnie Raper.

Kathy Griffin, president of the Merchants of MainStreet Dayton, agreed. “Competition is always good for the customers,” she said.

The board discussed drafting a resolution in support of video franchise reform, but chamber President Randy Wells asked to delay the resolution one month to allow him to talk to Dayton Mayor Bob Vincent about whether the city council would endorse the effort. Wells said he wanted to make sure the chamber and the city council did not work at cross- purposes.

In other business, Rhea Economic and Tourism Council Executive Director Raymond Walker announced that Rhea County and Spring City had completed the sale of 46 acres in the Spring City Industrial Park to General Shale Brick.

He also announced that Lowe’s home improvement plans to open its Dayton store before Christmas, and Hibbett Sports is expected to open a sporting goods store in the Rhea Towne Place shopping center before Thanksgiving.

Walker also introduced Freda Oldham, who has replaced Anita Crittenden as RETC administrative assistant. Wells, who is also president of MainStreet Dayton, announced that Sarah Standifer, formerly general manager of Holiday Inn Express, was taking Crittenden’s place as director of MainStreet Dayton.

( categories: AT&T | State Franchises | TENNESSEE )