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from: Nashville City Paper

AT&T vs. Cable, round 2
By John Rodgers, jrodgers@nashvillecitypaper.com

AT&T vs. Cable, round 2
Ding ding.

That’s the sound of the bell ringing to begin round two of the multi-million dollar battle between AT&T and the cable industry and local towns and cities over statewide television video franchising.

In case the ads running on television have not reminded Tennesseans, AT&T wants to get into offering television service here.

Last year, AT&T and its scores of lobbyists battled the cable industry and its scores of lobbyists to a standstill over the AT&T-backed legislation to allow them to get a statewide franchise to offer television service.

With the state Legislature reconvening Tuesday, AT&T is back again, making another push for its video franchise legislation.

“Video franchise reform will provide Tennessee TV consumers choice and competition, which leads to better prices, new jobs and economic development,” said Kenny Blackburn, an AT&T Tennessee spokesman.

The cable industry rebuts Blackburn’s statements, arguing that AT&T can already get a local television franchise — as is done today — and not have to pass legislation to allow a statewide franchise.

While the essential arguments from either side remain the same, there is a movement afoot to try and reach common ground.

House Speaker Jimmy Naifeh (D-Covington) organized a meeting between AT&T and cable and local government organizations last month to try and hammer out an agreement.

Naifeh said last week he felt “pretty good” after the meeting and hopes the groups can work out their differences to come up with a bill that is “good for the people of Tennessee.”

“If we could get to the point to where it’s the right thing to do, and neither one of them are real happy, then we’ve probably got a good bill,” Naifeh said. “So that’s what I’m working towards there.”

Stacey Briggs, the executive director of the Tennessee Cable Telecommunications Association, said each side’s points were essentially the same as last session’s during the meeting.

The difference this time is that the opposing parties were sitting across the table from each other.

“Not really any surprises, except that we were actually in the same room,” Briggs said.

AT&T’s Blackburn said the telecommunications giant appreciated Naifeh’s efforts and is “optimistic about reaching an agreement that all parties will be comfortable with.”

One of the main issues that may be the toughest to reconcile is the so-called “build-out” requirement.

Local franchising agreements between cities and telecommunications companies routinely have requirements that television service reach a certain amount of the population, regardless of income disparity.

Depending on the legislation of course, if AT&T was able to get a statewide franchise, it could offer its television services wherever it wanted.

“That’s the major purpose of their effort: to avoid having to serve people they don’t think will be too lucrative,” Briggs said.

Rep. Randy Rinks (D-Savannah), the chairman of the House Democratic Caucus, was one of the legislators coordinating AT&T and the cable industry sitting down and talking to one another.

Rinks said the biggest “bone of contention” among AT&T and the cable industry is over where a statewide franchise holder would be required – if any place at all – to offer services.

On the Senate side, Lt. Gov. Ron Ramsey (R-Blountville) said he was “sure” some form of a bill providing statewide video franchising would pass the state Senate.

Ramsey said the Senate was prepared last year to pass AT&T’s legislation setting up the statewide franchise ability.

“What we were after obviously is to try to get the consumers some more choice in the marketplace,” Ramsey said.