Leaders in the Tennessee General Assembly say cable television companies and AT&T are working toward agreement on a bill to enhance competition – and subsequently bring more broadband computer access to rural Tennessee.
House Speaker Jimmy Naifeh and the Republican sponsors of a bill to enact a statewide franchise for cable providers say the two business entities have been meeting privately and making progress.
“I’m very optimistic that we’re gonna get a bill that is going to have the input from these people that are around me right now, that hopefully neither AT&T nor the cable people will like. And therefore we’ll have a good bill. And it’s something that will be good for the State of Tennessee.”
Naifeh says when the two businesses involved in the secret talks reach agreement, the Tennessee Municipal League and local governments will be brought into the talks. Naifeh calls the process “transparent and open” even though the meetings are not open to the public.
Last week, Governor Phil Bredesen told the Chattanooga Times Free-Press he didn’t think the route being taken by Naifeh would work. Bredesen said it looked to be a situation “of what AT&T wants versus what the cable TV companies want.” He added that leaders should consider “want Tennesseans want.”
Naifeh says he respectfully disagrees with Bredesen’s assessment.
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Naifeh said the two sides began with a blank piece of paper, rather than a bill drafted by the AT&T, and said the political sponsors had agreed they would not tolerate either business interest drawing “a line in the sand.”
“We’re to the point that we’ve got a lot of the issues worked out. It’s moved along extremely well; I know we’re talking about five or six weeks, but this is a very complicated piece of legislation. You know, We’ve got to work out the build-out and the red-lining, and that is going to be difficult, but we’re going to work our way through it.”
Reporters pressed Naifeh on the transparency issue. He responded this way:
“It’s two companies, two corporations, that are trying to work out some differences right now. It’s been transparent with the two of them, and with us.
Do you want to go in there and sit through those meetings?
[Reporter Andy Sher:] Sure I’ll …..
[Naifeh:] NO you don’t!”
The two giant industries are looking at broadening their base of customers. State Comptroller John Morgan, who has been sitting in on the private meetings between the two industries, drew the connection between the businesses seeking more consumer business and the state’s interest in rural economic development through better computer service.
“Clearly AT and T wants access to consumers for video services which they currently don’t have. I think traditional cable TV companies also see an advantage at some point in being able to go beyond their confined and current geographical confined boundaries and offer services in other areas as well. And really what our interest is, if by offering their video service as a private client. If that leads AT and T and Sprint and United Telephone and Comcast and Charter to enhance their technology, in order to carry a better and newer and more varied array of products, if they do that, then It brings with it more general benefits of having bigger and faster pipelines out there to carry more and more information to more and more places across the state.”
AT&T has reported spending more than $3 million on the issue. The cablecasters have spent more than $5 million.
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