By Andy Sher
Nashville Bureau
NASHVILLE -- While contending "momentum" is growing on a statewide video franchising bill, AT&T Tennessee President Marty Dickens said Tuesday that if the legislation does not pass, the company may end up pursuing local franchising agreements in major cities such as Chattanooga.
"If this bill doesn't pass we have to re-evaluate our business plan," Mr. Dickens said. "If you're going to be limited in where you can go to get into business in a reasonable period of time, you're going to go where there's density of market, and there's density in the major" metropolitan areas.
The legislation, which AT&T also is pursuing in other states, would create a statewide franchising process to let AT&T and other companies bypass the existing local cable franchising process.
Chad Jenkins, deputy director of the Tennessee Municipal League, was critical of Mr. Dickens' remarks.
"It's pretty amazing that a multi-billion-dollar company would take a position ... and say if you won't give us the rules that we want, we'll take our toys and go home," he said.
AT&T contends the local franchising process is too cumbersome and would take too long with dozens of local governments to deal with. The company wants to offer dozens of channels to households through the Internet.
The cable industry and local governments are fighting the measure. Government officials have raised issues ranging from concerns about loss of local control to the inability to require service to many households and other issues.
The cable industry has accused AT&T of wanting to "cherry pick" wealthy or densely populated neighborhoods and avoid less profitable ones.
Mr. Jenkins said that all four major cities in Tennessee -- Chattanooga, Nashville, Knoxville and Memphis -- have passed resolutions inviting AT&T to apply for franchises.
Stacey Briggs of the Tennessee Cable Telecommunications Association said of AT&T that "nobody ever expected they would go to any other than the big four cities anyway."
The comments came as Senate Commerce Committee members on Tuesday amended the AT&T-backed bill, attaching two amendments approved by the House Commerce Committee. Proponents of the bill, who say it could result in lower prices for consumers but make no guarantees, hope the changes will blunt attacks by the cable industry and local governments.
The bill has been stuck for months in House and Senate committees.
Mr. Dickens said that if the bill passes, AT&T is prepared to invest several hundred million dollars in new technology and offer service to the four major metropolitan areas as well as some 70 smaller towns and cities. But he said the telephone giant could decide to spend the money in other states where the legislation has passed if there is no action in Tennessee.
"We're not going to do this because we're angry at Tennessee. That is not —not -- the situation," said Mr. Dickens, who did not entirely rule out coming back to the General Assembly next year if the bill does not pass. "What the situation is, you only have so many capital dollars. And you're going to invest them where you have a certainty of being in the business and you can make a return on your investment."
He emphasized he believes lawmakers eventually will pass the bill, citing a recent poll that said 76 percent of 602 Tennessee voters surveyed indicated they want the cable industry to have competition.
The bill's Senate sponsor, Sen. Bill Ketron, R-Murfreesboro, said he feels "good" about having the votes to move the bill out of the Commerce Committee next week.
Smoking bans
In other action Tuesday, House Agriculture Committee members dueled over a Bredesen administration bill that would ban smoking in the workplace, but ultimately they delayed action on it until next week.
Proponents cited health concerns about second-hand smoke, while opponents invoked private property rights.
"The general public wants this done," House Majority Leader Gary Odom, D-Nashville, said.
He alluded to a recent Chattanooga Area Chamber of Commerce survey that showed 86.8 percent of 678 business community respondents said they back a smoking ban in all indoor public places and places of employment.
But committee member Rep. John Litz, D-Morristown, a tobacco farmer, said that "when you boil this down, boil it down to property rights."
Rep. Eric Swafford, R-Pikeville, noted he has talked to some 400 constituents who largely favor a ban.
"At some point, the government has an obligation to say your rights end when you inflict on the pursuit of happiness of others," he said.
Committee members listened to Rep. Richard Floyd, R-Chattanooga, as he presented his bill that would ban smoking in restaurants where children are allowed and in all state and local government buildings.
No action was taken on his bill.
Meanwhile, a bill that would restore local governments' ability to regulate smoking failed in the Senate Commerce Committee. That panel next week is expected to debate the Bredesen administration bill and a competing bill favored by some tobacco interests.
E-mail Andy Sher at asher@timesfreepress.com
