A San Franciso Public Utilities
Committee may take steps to require AT&T
Corp. open access to its Tele-Communications Inc. cable network in
the Bay Area.
San Francisco’s Board of
Supervisors rejected a proposal by city staff that would have granted
AT&T a monopoly in the major metropolitan market.
The committee did not accept AT&T’s promise to upgrade the city’s
cable system upon approval of the TCI deal. Instead, the board
instructed staff members to reopen negotiations with AT&T and consider
making open access a prerequisite to the deal.
The committee moved to continue the discussion of the issue by the full
Board of Supervisors to be held in a closed session early in July.
Tom Ammiano, president of the board of supervisors and head of the
utilities committee, informed staff members that he would vote against
transferring the city’s cable franchise to AT&T. In doing so, Ammiano said
that local opinion and petitions demanded a full review of the AT&T/TCI deal.
“I cannot speak for the full Board,” Ammiano said, “but I know all of them
are concerned. They’ve been hearing from their constituents and consumers.”
A U.S. District Judge in Portland ruled late last month that the
municipality had jurisdiction over their cable franchise and that they
could require AT&T open cable network access as a part of serving the
public interest. AT&T has appealed the ruling to the Ninth Circuit Court
of Appeals.
Greg Simon, openNET
Coalition co-director said he was encouraged by San Francisco’s actions.
“Portland stood up to AT&T and refused to
let them have a monopoly. It looks like San Francisco is showing similar
courage and we appreciate the efforts by city officials to protect their
citizens.”
Simon said consumer choice would be history if cities throughout the nation
fail to take similar action.
“What is happening in San Franciso is happening in all the cities where
AT&T is buying cable franchises and seeking to avoid competition. People
throughout the country should be concerned because if the cable monopoly
controls high-speed Internet access it will dictate what you pay, how you
get online, and the Web sites you see,” Simon said.
Competitive rhetoric aside, the Federal
Communications Commission has yet to formally address mandatory cable
network access in the U.S.
FCC Chairman William E. Kennard has indicated that he fears local
jurisdiction over the issue will convolute policy and delay consumer access
to broadband services.
In his first public statement after the Portland court decision, Chairman
Kennard said, the market would be rocked with uncertainty; investment
would be stymied; consumers would be hurt.
In a speech made before the Federal Communications Bar Association in
Chicago earlier this week, FCC Commissioner Michael K. Powell indicated the
mandatory network access does not merit government intervention on behalf
of Internet service providers.
“Our job is normally not to protect competitors; it’s to
protect consumers.”
