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from: Mountain Times

Sevierville BOMA among opponents of AT&T proposal
By: DEREK HODGES Staff Writer March 10, 2008

That vote was conveyed to state lawmakers representing the area and was done immediately following a request from AT&T representative Dennis Wagner that the Board of Mayor and Aldermen support the move.

It was Wagner's second appearance before BOMA; both times he got a negative reaction. Mayor Bryan Atchley said he expects the board's opinion won't change.

"Cities across the state have taken the position that it is not unreasonable to ask AT&T to follow the rules as they have applied to the other companies for 25 or more years," Atchley said. "It is a little more difficult for them, but it's not something they can't do."

Atchley says the current system does not inhibit competition. To illustrate that, he points out the city itself is studying the idea of offering cable service. The very fact the city can do it shows state laws don't limit where cable companies can offer their services, Atchley said.

Further, the mayor said city leaders have other concerns. Chief among them: losing franchise fees and local channels.

AT&T and state officials have worked out a deal that would allow franchise fees from state-issued licenses to go to local governments. Additionally, AT&T has promised it will offer local channels.

Still, Atchley said AT&T has done nothing to address his concerns it will "cherry-pick" the areas it wants to serve. He's concerned a statewide franchise with no requirement for service coverage will mean less-populated areas like Sevier County will be left off AT&T's cable system.

"We're concerned they may only want to offer this service to places like Nashville and Knoxville, the most populated cities and counties," Atchley said.

Interestingly, an Associated Press article from June 1, 2006, shows some people in North Carolina - which passed a law after a similar lobbying effort by AT&T's precursor BellSouth - had the same concerns about selective service.

"Consumer advocates and operators of public access channels said they're worried that the plan won't prevent companies from picking and choosing from among the most profitable customers," the article reads.

In North Carolina, the company refused to release details of where its service would be offered "for competitive purposes," a spokeswoman said at the time. AT&T spokesman Bob Corney told The Mountain Press on Thursday the company does not have data on what areas it covers in specific states. Corney defended the company's efforts, saying current state laws do not allow for competition.

Atchley maintains competition is possible under the existing law, adding AT&T would rather have special treatment than abide by the rules others follow.

Corney would not say if AT&T would compete for customers in Tennessee if the law is not changed, saying he does not answer hypothetical questions.

While Sevierville city leaders may not be pleased with the proposal, AT&T has offered compromises that seem to have appeased established cable companies, which started out as the bill's biggest opponents.

The sticking point for the cable companies was not that the move will introduce competition, but that the first bill didn't give cable companies the same statewide franchise license. However, a provision has been added to the bill that would allow for equal treatment.

With that compromise, the cable companies seem resigned to accept what they now see as an inevitability.

"It's the will of the General Assembly that they're going to have that law in place after this session," said Nick Paulis, state director of government relations for Charter Communications. "At the end of the day, what we want is a level playing field."

Paulis points out the locally-franchised companies have paid an average of $17,000 per mile to build up their infrastructure. To allow a new organization to get the upper hand in a business in which companies like Charter and Comcast already have invested millions would be unfair, he said.

"We'll have to look at what comes out of the talks that are going on right now to see whether we'll support this or not," Paulis said.