AT&T begins offering its new television service called “U-Verse” today in parts of Middle Tennessee. Years in the making, the telecom giant had state law changed to streamline the franchising process. To remain competitive, Charter Communications has secured a statewide franchise of its own to offer cable TV service. Comcast, however, has no plans to follow suit.
The new law gives companies a shortcut to adding subscribers.
Before the General Assembly passed what came to be known as “the AT&T bill,” cable companies had to negotiate with individual cities and counties. They’d decide how much of a fee to charge each customer which went to local governments. Cable companies opposed the new statewide franchise that consolidates the process on the grounds it has taken them decades to build up their own footprints.
Comcast government affairs director Terri Weldon says the law that passed wouldn’t benefit her company.
“We feel like the legislation that was passed was fair, and that’s why we do have a choice now. We can stay local and right now, that’s what we’ve decided to do while we continue to evaluate all of our options.”
Economics may be behind the decision. Even though the new law opens the door to the entire state, it also sets a standard local fee at 5%. That’s higher than what cable companies pay some local governments now.