Connecticut Authorities Set AT&T Free from Cable Franchise Regulations
06/08/2006
AT&T may need to add another "T" to its name, following a decision Wednesday by the state Department of Public Utility Control that Internet Protocol Television is not subject to cable franchising requirements.
This leaves the way clear for the former American Telephone & Telegraph to launch its "U-verse" television service — already in limited release in the San Antonio area — in
Connecticut later this year. Consumer advocates and cable companies blasted the decision, claiming it won't create competition. "Without government regulation and a universal service requirement, IPTV providers will cherry-pick the wealthiest and most accessible consumers, leaving the rest of Connecticut with no choice and higher costs," Attorney General Richard Blumenthal wrote in a statement. In part, cable-franchising rules require a provider offer a specified amount of public access programming.
The decision made final a May 5 DPUC draft decision, when the commissioners said the service is just another form of data stream, bearing more resemblance to the Internet than television.
The DPUC's vote wasn't unanimous — unusual for the five commissioners — but spokeswoman Beryl Lyons said, despite the 3-2 vote, "All five agreed that the law was not clear The technology moved faster than the law."
Blumenthal and others have 45 days to appeal the decision, Lyons said. In his release, Blumenthal said he would review the ruling and consider an appeal.
The attorney general's wasn't the only office to react negatively to the decision. Consumer Counsel Mary J. Healey's office sent out a news release titled, "DPUC Takes a Byte Out of Consumer Protection!" claiming the decision only promotes AT&T's interests.
Cablevision Systems said the decision is contrary to state and federal law, calling it a "special deal for a $100 billion phone company that creates an uneven playing field for competitors."
But John Emra, a New Haven-based AT&T spokesman, said the cable industry spent a lot of money "trying to scare people with untrue allegations."
It will be several weeks before AT&T spells out its plans for Connecticut, Emra said. The company has yet to decide on pricing for the service, but knows it will have to spend a lot of money — about $4.6 billion nationally — installing fiber optic wires and other technologies to carry the IPTV. Pricing, he said, will be "competitive" with cable.
The way it will work, Emra said, is a national video office will collect programming from satellites, encode it in a digital format, then send it via the fiber optic lines to local offices. Those offices, he said, will also pull local content, including programming from network affiliates, and store it all on servers.
Neighborhood video nodes will collect and disseminate the content via existing copper lines to individual homes. A remote control will request specific content from the server via a set-top box on the television.
"Cable sends all channels to all consumers at all times," and users change frequencies to watch a particular channel, Emra said in explaining the difference. "We're only sending that specific channel you're asking for at that particular moment," which means IPTV can offer more content than cable.
When asked how the service differs from satellite dishes, Emra said users with IP-ready cell phones could program digital video recorders with those phones, or even choose a camera angle from football games, instead of only seeing what a producer chooses to send.
According to Emra, AT&T has committed to carrying public access shows. And within three years of its start, 30 percent of the households served nationally will be low income.
"Monopolists will do anything they can to protect what they have," Emra said, adding he expects the cable companies to appeal the decision.
http://www.connpost.com/business/ci_3912639