By Erik Schelzig
NASHVILLE — AT& T Inc. has announced plans to invest $400 million in Tennessee as part of its effort to offer statewide cable television, Internet and phone services.
The company applied for a statewide cable franchise with the Tennessee Regulatory Authority today — the same day a new state law went into effect to allow companies to bypass the old system of requiring individual cable permits for each city or community.
The new law was the result of a two-year legislative fight among AT&T, the cable industry and local governments that saw millions spent on lobbying and advertising campaigns.
Cable companies had argued that it would be unfair for AT&T to be able to circumvent existing rules to be able to offer their services statewide.
AT&T wants to roll out its U-verse package, which delivers TV content to consumers using the Internet, rather than through traditional cable or broadcast formats. The $400 million would be spent over coming years on upgrading AT&T’s fiber network.
The San Antonio, Texas-based company said it plans to offer the services in its current service area in Tennessee — including 56 cities, and unincorporated areas in 29 counties — within two years of the getting approval.
“It will take time to enhance our network to offer these exceptional services, but we will move as quickly as possible to compete for Tennessee customers,” Gregg Morton, president of AT&T Tennessee, said in a release.
AT&T serves more than 1 million customers in Tennessee, according to the application.
State regulators have 45 days to process the application under the new law.
It's obvious that Comcast has not realized a significant threat, competitively speaking, from satellite television providers, as they have raised cable TV rates nearly 100% in the last 15 years. As a 32 year employee in the telecommunications field, I totally support AT&T's entry in this market, which will only benefit all Tennessee consumers. Let’s work hard, play fair, and win in the marketplace.
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