Tuesday, January 2, 2007

FCC ruling helps AT&T; upsets towns

By Anna Marie Kukec (12.28.06)
http://www.dailyherald.com/search/searchstory.asp?id=264177

The National League of Cities and the Illinois Municipal League are upset with recent FCC rulings and are likely to sue the federal agency for overstepping its boundaries.


The National League of Cities and the Illinois Municipal League said the FCC’s decision blocks local governments from exercising their franchising process, earning revenues, offering services to all residents and protecting public rights of way.

“We believe the FCC has overstepped its authority,” said Ken Alderson, executive director of the Illinois Municipal League.

The FCC last week ruled municipalities cannot unreasonably refuse companies from competing with cable operators. This includes unreasonable requests for “in-kind” payments that attempt to subvert the 5 percent cap on franchise fees, drawn-out local negotiations with no time limits and other situations.

The towns contend AT&T is required, just like Comcast, to follow the same franchising process, pay the same fees for public rights of way, allow for services to all residents regardless of ability to pay and provide local access channels.

AT&T has argued it’s not a cable company and shouldn’t be treated like one.

Peter Collins, information technology manager for Geneva, and Gary White, media manager for Wheaton, said their towns still need to review the FCC order, expected in about a month, before determining what it means to their franchising process and to the AT&T lawsuits.

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