AT&T Corp. and Tele-Communications Inc. told Portland, Ore.,
officials this week they don’t plan to abide by a city ordinance requiring
them to open TCI’s cable system to other Internet providers.
AT&T, which is in the process of finalizing its $48 billion purchase of
TCI, said it will comply with all provisions of an ordinance approving the
transfer of TCI’s cable system in Portland to AT&T with the exception of a
requirement that other Internet providers be able to access TCI’s cable
network.
An AT&T spokesman said the company is balking against the provision
because it believes the requirement is unlawful. AT&T and TCI maintain city
governments have no authority to set rules using the open-access provision.
The companies say that authority lies solely with the Federal Communications Commission or Congress.
AT&T is in the midst of getting local approvals for TCI franchise transfers
in more than 900 cities across the country.
AT&T and TCI maintain requiring open access nationwide could jeopardize the
TCI deal.
