Franchise Rules May Prompt AT&T To Forgo Video

[SOURCE: Technology Daily, AUTHOR: David Hatch]
AT&T warned federal regulators that it may abandon plans to offer video and high-speed Internet service in numerous markets if forced to obtain local franchises. The comments, made in a Feb. 13 FCC filing, surfaced on the eve of a hearing on franchising before the Senate Commerce Committee. "Absent commission action," the company said, AT&T and other potential competitors would "face the prospect of negotiating franchising demands town by town and abandoning plans to provide competitive video (and other broadband) services in hundreds, if not thousands, of towns and cities." AT&T said planned services could be scrapped in "towns and cities that refuse to take timely, reasonable positions -- or claim that they are prevented by state law or incumbent franchise agreements from doing so." "AT&T has negotiating leverage to walk away," said Scott Cleland, chief executive officer of the Precursor Group. But he thinks the company is mostly "posturing" by sending localities the message that cooperative towns "will get their services first." He said the FCC appears to be sympathetic with the concerns of AT&T and Verizon Communications that some localities may try to extract too many concessions through franchise arrangements.
http://www.njtelecomupdate.com/lenya/telco/live/tb-ZQTQ1140036230700.html

* Microsoft Backs AT&T on Franchising
In comments filed at the Federal Communications Commission late Monday, Microsoft said Internet-protocol networks planned by AT&T should be regulated at the federal level.
http://www.multichannel.com/article/CA6307714.html?display=Breaking+News
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