The Tennessee Senate approved a plan this morning that some believe will lead to cable competition in the state. By a unanimous vote, the proposal to create statewide TV cable franchising now goes to Governor Phil Bredesen's desk for approval.
The measure pushed by AT&T Inc. is the result of two years of negotiations with the cable industry and local governments. Locals, like Chattanooga, worried about losing control over setting cable rules and the fees generated from those permits. Those fees amount to backdoor taxes since the cable companies add them to your bill for you to pay.
Cable companies had argued it was unfair that AT&T circumvent the existing rules to be able to offer their services statewide. Those existing rules require companies to negotiate with hundreds of municipal areas, large or small, for the right to offer service. AT&T plans to provide a video product through a fiber-optic network that doesn't recognize city and county boundaries.
AT&T also plans to bundle Internet and Phone service with their video services offering.
Gov. Phil Bredesen, who has mostly stayed out of the debate over the proposal, has not said whether he plans to sign the bill into law.
Want to know what AT&T might offer in Chattanooga? Click Here. [1]
(AP contributed to this post)
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