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Apr
4
Announcement of cable/AT&T deal set for Monday
By John Rodgers | Filed Under State Legislature
Leading lawmakers in the cable/AT&T negotiations over statewide franchising will roll out their compromise legislation Monday in a press conference, the House Democratic Caucus announced today.
The compromise bill marks the culmination of months of negotiations between the involved parties.
The deal is expected to have AT&T agree to “build out” its television service to a certain percentage of a town or city, as well as offer the services to some low-income residents.
From the March 24 edition of The City Paper:
To make an agreement happen, AT&T has given in on where it’s required to offer its services under a statewide franchise.
Going into the talks, one of the biggest points of contention was where a statewide franchise holder would have to offer video services.
Local franchise holders are often bound to “build out” to cover a certain area of a city or county, and therefore can’t “cherry pick” wealthy residents.
The cable industry has argued that a purely statewide franchise would allow AT&T to only cater to high-income customers.
In the tentative pact, Tennessee would be the only Southeastern state to require AT&T and other statewide television franchise holders to offer its services to a certain percentage of a geographical area within a certain time frame.
Some low-income customers would also have to be covered.
“That’s what the build out is going to look like,” said Rep. Randy Rinks (D-Savannah).
Since late last year, lobbyists and lawyers from the cable industry and AT&T have gathered in House Speaker Jimmy Naifeh’s conference room on Capitol Hill to try to hammer out a deal over statewide video franchising rights.
Currently, television franchises are obtained at the local level, such as Comcast in Davidson County.
AT&T, in its effort to get into the television services business and compete with cable, wants to pass legislation allowing for a statewide — instead of local — franchise. That would allow the telecom giant to offer services anywhere in the state and not have to strike local agreements.
During last year’s legislative session, AT&T spent millions lobbying for the bill, but the cable industry and its local government allies fended it off. The cable industry, defending its business model designed on local franchises, also spent millions lobbying against AT&T’s effort.
Naifeh (D-Covington), determined to not watch the same spectacle again, started gathering AT&T and cable, and then local governments, together to try to work out a deal. Those talks are winding down, and the compromise bill could be produced this week or within the next two, said Rinks, one of the lawmakers involved in the negotiations.
“There’s been a lot of progress that I think has been made,” Rinks said.
Lt. Gov. Ron Ramsey (R-Blountville) also said a compromise bill would likely be released this week and he’s “very optimistic” statewide franchising legislation would be passed this year.
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