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Note: It's hard to imagine a worse corporate citizen than AT&T. They offer the same same service in every state, but resort to every means available to wriggle out of public interest obligations. In Connecticut they tried to pass U-verse off as a data service to avoid local video franchise obligations. In 19 other states, AT&T has written legislation that all but eliminates the existing public interest obligations of local video franchises. Now in Alabama, they cite a 1900 telegraph agreement and claim their agreements to be "public benefits video agreements" (sans benefits).

from: Birmingham News

Cable companies serving Birmingham area say AT&T's U-verse gets unfair advantage
Want AT&T to have franchise agreements
Monday, March 03, 2008
MIKE CASON and MARIENNE THOMAS-OGLE
News staff writers

Cable television companies and the Alabama League of Municipalities say AT&T should be required to sign franchise agreements with cities to set up its new television service, known as U-verse.

U-verse provides Internet Protocol, or IP, based video television service over fiber optic cable. U-verse also provides telephone and Internet services.

Franchise agreements set conditions for use of public rights-of-way for lines and other equipment. Cable companies are required to sign them.

AT&T has negotiated deals to offer U-verse in eight Alabama cities - Center Point, Clanton, Gardendale, Helena, Hoover, Midfield, Mountain Brook and Tarrant. The company is talking to others, including Birmingham. No start date is set in the state.

AT&T says its U-verse agreements are "public benefits video agreements," not franchise agreements.

AT&T spokeswoman Terri Denard said the company is not required to enter franchise agreements because it has had a statewide franchise to install telephone and telegraph lines since before 1900.

Alabama Attorney General Troy King issued an opinion in December that appears to support AT&T's position.

But cable companies say AT&T's U-verse agreements are less binding than franchise agreements and would give the company an advantage over competitors.

Franchise agreements vary, but some require companies to serve all neighborhoods that have a minimum number of households, which is intended to prevent companies from serving only the most profitable areas. Franchise agreements also generally require cable companies to maintain minimum levels of maintenance, make channels available for public access or education, and meet other obligations. Cable officials say AT&T would have fewer obligations under its U-verse agreements with cities.

"All we're asking for is to be treated the same," said Lynne Coker, spokeswoman for Charter Communications, Alabama's largest cable provider.

Officials with the League of Municipalities say they are concerned about not being able to properly regulate use of rights-of-way without franchise agreements.

Helena Mayor Charles "Sonny" Penhale, president of the league, plans to ask for a second attorney general's opinion on the issue. Penhale said a number of cities have contacted the league with concerns.

But AT&T's Denard noted that cable companies are competing vigorously in the telephone market. She said competition will be good in the television market, as well.

"Escalating cable TV bills have consumers across the nation clamoring for more choices," Denard said.

King issued the opinion on franchise agreements in December in response to a request from state Rep. Greg Canfield, R-Vestavia Hills, who said he asked for the opinion at the request of AT&T. It concludes that companies that had statewide franchises for telephone and telegraph lines don't need new agreements to add or upgrade equipment to provide new services of a similar nature.

Canfield said he asked for the opinion because it would benefit consumers if AT&T is able to offer the service at a lower cost.

AT&T's U-verse agreements call for the company to pay cities a fee equal to 5 percent of revenue, the same fee in most cable franchise agreements.

AT&T's agreements call for the company to work with cities to provide public access channels through Web-based technology. But cable providers say the agreements fall short in other areas.

"They seem to be willing to pay the 5 percent," said Mark Fowler, executive director of the Alabama Cable Telecommunications Association. "But they don't seem to be willing to do anything else that a cable operator is required to do under the law."

U-verse is already available in parts of Atlanta and some markets in California, Texas and other states. It can provide television service to homes through telephone lines if fiber optic cable is available within a maximum of 5,000 feet of those homes. Denard said some additions will be needed to the company's fiber network in parts of the Birmingham area.

News staff writer Malcomb Daniels contributed to this report. mcason@bhamnews.com