Suburbs seek to keep control over what services are offered to residents
The competition to offer consumers the next generation of broadband Internet service in several western 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.
John Lenahan, general counsel for AT&T Illinois, told an Illinois House subcommitee on broadband infrastructure that his company still hopes that Congress will pass a national video bill.
He noted that AT&T has already taken seven western suburbs to court for blocking network upgrades. An eighth suburb, Naperville, this week enacted an ordinance that AT&T said will stop network upgrades there.
Legislative action could negate municipal moves that prevent consumers from getting faster Internet and video service from their telecom carrier, he said.
“A statewide franchise bill is something that would promote broadband development,” Lenahan told lawmakers. “You want to consider and support it.”
AT&T’s call for state franchising was echoed by Bill Terry, senior regulatory manager for Mattoon-based Consolidated Communications Holdings Inc., who said the firm provides phone service to customers in Texas and Illinois, and finds the statewide video franchise system in Texas works well.
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