Politics Squeezes effort on Broadband

POLITICS SQUEEZES EFFORT ON BROADBAND
[SOURCE: Chicago Tribune, AUTHOR: Jon Van]
The competition to offer consumers the next generation of broadband Internet service in several Chicago suburbs has gotten caught up in local and national politics, resulting in what telephone companies say is a lack of options resulting in needlessly higher prices. The problem, which experts say has broken out in pockets across the U.S., is one of applying old ways of doing business to new technology, according to the phone companies. The municipalities insist on negotiating individual franchise agreements with AT&T Inc. for new broadband service the same way they have struck exclusive deals to accept cable TV service. Phone companies, led by AT&T, say that times have changed because there is competition in providing service. As a result, they are pushing for state or national franchising laws to do away with all the paperwork and delays, while municipalities, including Naperville and others, say they have a legal obligation to maintain control. On Wednesday AT&T and other Illinois phone companies told an Illinois legislative subcommittee that they will probably seek statewide video franchising here, similar to laws passed in Texas, California, New Jersey, Indiana and other states. "The phone companies don't have to have national franchising," said Steven Titch, a telecom analyst with the Chicago-based Heartland Institute, a free market advocacy group. "They can solve their problems at the state level, and the longer the deadlock lasts in Washington, the more likely that's the route they'll take."
http://www.chicagotribune.com/business/chi-0609070191sep07,1,2749913.sto...