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from: Dayton Daily News

AT&T advocating statewide permits for utility growth
Backers say bill will lower cable costs, but consumer groups say it benefits suburbs and ignores urban poor and rural areas.

By Jim DeBrosse
Staff Writer
Sunday, March 25, 2007

COLUMBUS — Telecommunications giant AT&T is pushing a bill that would ease entry into Ohio's cable and video franchise market for phone companies and other cable competitors. It also would pave the way for the next generation of digital home services that mix voice, video and computer data.

Backers of Senate Bill 117, which was introduced last week by Sen. Jeff Jacobson, R-Vandalia, believe the increased competition would lower cable costs to consumers, expand access to underserved areas and promote job and high-tech growth statewide.

But consumer groups and local governments are aghast at the bill. "We strongly support competition in all marketplaces, but this is pseudo-competition," said Ed Mierzwinski of the Ohio Public Research Interest Group. Consumer groups say the measure would allow AT&T to "cherry-pick" affluent suburbs for their services while ignoring the poor in urban areas and the underserved in rural areas.

And local governments say the bill would weaken their control over rights of way and customer service and reduce their franchise fees for operating community access channels.

"It really does a number of horrible things both to consumers and local communities," said Joel Kelsey, grassroots coordinator of Consumers Union, the nonprofit group that publishes Consumer Reports.

Currently, phone and cable companies must negotiate separate agreements with hundreds or even thousands of localities before laying cable or stringing utility lines. The bill would streamline that process by permitting video providers to negotiate a single contract to serve the entire state.

Phone companies have been lobbying for statewide video franchises nationwide as they launch new services. AT&T plans to invest $4.6 billion to reach nearly 19 million homes in 13 states, including Ohio, by the end of 2008. Nine states already have statewide franchise laws, including Michigan and Indiana. Pennsylvania is debating several bills now.

Caryn Candisky, a spokeswoman for AT&T in Ohio, defended the bill's "high standards" and said it is very similar to video franchising laws that have passed in other states "by overwhelming bipartisan majorities."