from: Denver Post [1]

Qwest move spurs surprise
By Kimberly S. Johnson
The Denver Post
Article Last Updated: 12/19/2007 02:01:04 AM MST

Local leaders said Tuesday they were surprised to learn that Qwest would no longer pursue cable-franchise agreements at the state or municipal level, as the company was taking steps to gain support for legislation that would have allowed it to do so.

Qwest chief executive Ed Mueller said Monday during an announcement of the telecommunications company's strategic plan that it would no longer attempt to secure cable- TV-like franchise agreements and would not launch a broad television service in 2008.

Ken Fellman, former mayor of Arvada and a local communications lawyer, said he respects the company's decision to back off of its video plans. Fellman has asked that Qwest be required to offer video services to all members of a city or town, not certain select neighborhoods.

"It was a concern that Qwest didn't have the financial resources to widely deploy service," said Fellman, who also represents the Greater Metro Telecommunications Consortium. "We would have ended up with pockets of competition. Perhaps in some ways, Mueller came to a similar conclusion."

According to Fellman and Darryn Zuehlke, president of the GMTC and head of the Denver Office of Telecommunications, Qwest was in talks with legislators about proposing a statewide-franchise bill in the upcoming legislative session.

"Local governments felt the statewide legislation might have been misplaced because the local-franchise process works," Zuehlke said. "We're relieved that Qwest isn't following up, with respect to their strategy."

Comcast, the state's dominant cable provider, said the move changes little in Comcast's approach to providing service to its 800,000 customers in the state.

"Whether they are delivering video via a satellite partnership or through their own network, Qwest remains a viable competitor in the video marketplace where consumers have a wide range of video choices," said Comcast spokeswoman Cindy Parsons, referring to Qwest reselling DirecTV satellite service to consumers.

But Comcast still faces competition from other providers looking to offer pay TV in various areas across the state.

Fellman said smaller cable companies, like Falcon Broadband and Porchlight Communications, that operate in Colorado Springs are working to bring service to surrounding areas.

"Just because Qwest isn't in the market doesn't mean there isn't going to be any competition," Fellman said.

Kimberly S. Johnson: 303-954-1088 or kjohnson@denverpost.com