Gregg Morton, president of AT&T in Tennessee, told the Chattanooga Rotary Club on Thursday that there is a need for video franchise reform in Tennessee. “It’s time for competition, choice, and better pricing for Tennesseans,” he said.

The old rules no longer make sense because they provide a legacy and an environment of monopoly while inhibiting competition, he said.

Twenty states have already approved statewide franchise licensing legislation including all states that touch Tennessee, with the exception of Kentucky. “Why not Tennessee?” Mr. Morton said. AT&T is asking Tennessee legislators to pass a statewide franchise bill this year.

“Cable rates go up 5% to 7% every year,” the speaker said. “Since 2002, cable rates in Tennessee have gone up 29% while income has gone up only 6%.”

He said that discussions with the cable industry and the Tennessee Municipal League have been very positive and all have discovered that they are not that far apart in their thinking. He is optimistic, he said, that a bill will soon move forward and probably pass.

“We probably aren’t going to like it completely, and cable won’t like it completely, and the cities and counties won’t like it completely; but it will be a balanced piece of legislation that will bring this goal of competition and choice to Tennesseans,” Mr. Morton said.

“It’s not just about AT&T,” he said. “We are not trying to keep anybody out (of Tennessee). We are trying to allow everybody in.” It’s expected, he said, that other cable companies will compete with existing franchised cable companies; and, other entities, like Chattanooga’s EPB, will enter the competition.

AT&T is planning to spend $350 million to upgrade its existing network in Tennessee, Mr. Morton said. Overall, AT&T has a $1.15 billion investment in Tennessee, when counting salaries, taxes and facilities.

A three-screen approach (TV, PC and wireless phone) for customers is the plan AT&T hopes to launch in Tennessee, Mr. Morton said. Wireles phones and Internet service are already products of AT&T. The TV is the final piece of the puzzle to be added.

AT&T U-verse is the name of the product AT&T hopes to launch when the legislation is approved, Mr. Morton said. Some of the highlights of the service include more than 25 HD channels, a four-stream DVR with web remote access, picture-in-a-picture, parental controls, and free wireless home networking.

With the newest technology, Mr. Morton said, there are other potential services including more video-on-demand hours, multiple camera angle selection, and whole home DVR.

“Our goal,” he said, “is to connect people with their world, everywhere they live and work, and do it better than anybody else.”

Dana Wilbourn
dbwilbourn@yahoo.com