IL: AT$T seeks state law to offer TV

Posted on February 23, 2007 - 12:53pm.

from: pantagraph.com

AT&T seeks state law to offer TV
By Kurt Erickson

SPRINGFIELD — A battle for control of your television remote control is brewing in the State Capitol.

In an announcement Thursday, telephone giant AT&T rolled out its plan to change state law so it can begin offering television service to Illinoisans over their phone and Internet wires.

The proposal is part of a nationwide effort by the telecommunications company to make it easier for them to invade territory now dominated by cable television companies.

Supporters say allowing AT&T to compete for TV will result in lower monthly bills.

“Prices will go down as competition increases,” said state Sen. Bill Peterson, R-Long Grove.

The cable industry is fighting back, saying the plan could affect public access programming.

In states like Florida, the fight has resulted in huge lobbying expenses by telephone and cable companies as both sides seek to influence lawmakers.

At a press conference Thursday, AT&T was joined by a handful of members of the House and Senate, as well as representatives from the business community and labor organizations.

Business and labor groups are backing the proposal because AT&T has committed to spend money upgrading its transmission lines.

Doug Whitley, president of the Illinois Chamber of Commerce, said, “This legislation is essential because it will stimulate meaningful investment and create jobs for Illinois residents.”

Under current law, telephone companies already can offer video service in Illinois. But like cable companies, they must first strike franchise agreements with local governments to serve specific areas. It is AT&T’s strategy to eliminate the local hurdles and create a statewide franchise agreement administered by the Illinois Commerce Commission.

If approved, Illinois would join nearly a dozen other states that have similar laws in place, including Indiana. Missouri is debating the issue and Wisconsin is expected to consider a similar plan in the coming months.

The legislation is House Bill 1500.

( categories: AT&T | ILLINOIS | State Franchises )