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from: Broadband Reports

Locals Fight AT&T Franchise Push in Illinois
State versus local control...

Posted 2007-03-19 09:26:08 by Karl

We've discussed at length the battles between AT&T and local towns in Illinois who've been annoyed at AT&T's refusal to adhere to the local franchise system as they deploy IPTV. Some towns have been annoyed by the placement of large AT&T VDSL cabinets, some are concerned primarily about revenue and others don't like that AT&T will be ignoring build-out requirements (see our interview with Peter Collins, Geneva, IL, IT chief).

AT&T is lobbying state lawmakers hard for a state-level franchise that will make ignoring these local concerns perfectly legal. A number of states have now passed similar franchise laws, driven by the promise that the changes will result in lower TV prices as the telcos rush to compete with cable providers. Localities, however, note that if the telcos are allowed to cherry pick only the most profitable areas, the promised competition may arrive for only a few.

"It's not about competition," says Geneva's assistant city administrator, Mary McKittrick, to the local papers. "It's about companies bullying their way into the marketplace. It's about eminent domain; it's about not committing to universal coverage."