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from: Times Free Press

Commission hears cable competition proposal

By Holly Cowart
Community News Assistant Editor

Soddy-Daisy commissioners did not vote on a resolution supporting competition in the cable industry at their March 6 meeting, but expect to on March 20.

The resolution could mirror the one approved by Hamilton County last November, which specifically supports the efforts of AT&T to offer statewide service. AT&T is working with the state legislature to adopt a bill, which would allow it to pay the same franchise fees as other cable providers without entering into individual franchise agreements with the over 400 local governments throughout the state.

"Everyone understands that the local governments want their monies paid to them and paid to them directly," AT&T Tennessee Assistant Vice President Patsy Hazelwood told the commission. "The most important thing is that this is good for the citizens; it would bring competition to the video market."

AT&T would use existing infrastructure to offer cable and high-speed Internet and add electronics to its lines as needed. Mayor Bob Privett asked about the concern that rural areas wouldn't be a priority for service.

"We can't flip a switch and make it work everywhere," Ms. Hazelwood said. "There is a lot of work involved." She compared it to other services like call waiting or high-speed Internet, which came to the more densely populated areas first.

Commissioner Jim Adams asked why AT&T has to have approval from the state legislature to begin this service. Ms. Hazelwood said because AT&T's offices cross city and county boundaries the individual franchise contracts wouldn't be practical. Its Red Bank office, for example, serves customers in Red Bank, Chattanooga and Hamilton County.

"We are the big ol' phone company," she said in reference to the television ad campaign run against the proposal. "But we don't have one video customer in Tennessee. Cable wants us to go through the same process they did 30 years ago, but they were guaranteed a customer."

She said in addition to franchise fees there are other economic advantages such as generating jobs. In North Carolina, which is similar in population to Tennessee, AT&T invested about $350 billion dollars in the first three years for video. Those numbers are in addition to money the company was already spending in the state providing phone service.

"Where does Soddy-Daisy stand in line is what I want to know," Mr. Privett asked. Ms. Hazelwood said Nashville would be first and from there the expansion would probably be based on size and density, she said.

Mr. Adams said his concern was with the state guaranteeing the company's investment. Ms. Hazelwood said there is no guarantee customers would opt for AT&T's service. "We can't make the investment without the latitude this legislation allows," she said.

Mr. Privett pointed out that if the legislation passes any company could utilize it. Ms. Hazewood said in fact 85 companies have applied to use it in North Carolina since it passed there. The commissioners agreed to develop a resolution supporting the legislation or at least the idea of competition and vote on it at their next meeting.

In other business, the commission approved on second reading an ordinance rezoning land located at 341 Hixson Street to residential townhouse zero lot line district. The commission also approved an ordinance on second reading for codification of all the city's ordinances.

Commissioner Geno Shipley announced a Soddy Lake cleanup for the last Saturday of the month. He said they are hoping for a good turnout and everyone is welcome. The cleanup will begin around 8 a.m. and last about four or five hours.

E-mail Holly Cowart at hcowart@tfpcommunitynews.com