Rich Fiscus
15 Oct 2007 23:02
AT&T's quest to provide an alternative to cable television in Connecticut has hit a snag after that state's Department of Public Utillity Control (DPUC) rejected an application to provide IPTV services across the entire state.
AT&T has come under fire from some municipalities in recent months because they claim their U-Verse IPTV service isn't covered by the same regulations that govern cable television services. After a ruling in a Federal court earlier this year, which indicated that they are in fact considered a cable television provider under federal law, AT&T decided to apply for a statewide monopoly. This would have allowed them to operate within any part of the state, regardless of how local officials felt about it. With this ruling, they'll be required to get a contract with each municipality before offering service.
"In making this ruling, the DPUC ignored both the spirit and the letter of a brand-new consumer-friendly law and is protecting the cable monopoly," Ramona Carlow, an AT&T official overseeing regulatory affairs, said in a statement.
"Consumers should be outraged that just as more than 150,000 local households in more than 40 Connecticut cities and towns gained the ability to choose a video provider other than their local cable monopoly, the DPUC and attorney general have acted to protect cable monopolies by eliminating competition," Carlow said, referring to the 40 cities where U-verse is already available.
As a result of the ruling, AT&T also announced they'll be eliminating more than 300 jobs in Connecticut, and disconnecting over 7,000 current U-Verse subscribers.
Source: Reuters