Calif. Court Rules Against AT&T

By Linda Haugsted
MultiChannel News

4/14/2006 1:58:00 PM

http://www.multichannel.com/article/CA6324981.html


Cities are within their rights to demand a franchise of AT&T Inc. for its 
video service, according to a ruling from a judge in U.S. District Court 
for the Northern District of California.

The judge, however, did not rule specifically on whether 
Internet-protocol-delivered video is a cable service. But cities can pursue 
franchises because the action is not specifically precluded in the federal 
Cable Act, Judge Maxine Chesney wrote in a decision issued Friday.

The ruling is a blow to AT&T, which argued that its service -- which will 
deliver programming in data packets at the demand of consumers -- does not 
meet the definition of a cable service.

The company has challenged any attempts at franchising, filing this suit 
against Walnut Creek in California, as well as another city there, to go 
along with three suits in Illinois. AT&T argued that it has a right to 
deliver video under the authority given to it as a local-exchange carrier.

The dispute in this case arose when AT&T sought permits to place hardware 
in city-controlled rights of way. Walnut Creek issued the permits, but with 
the caveat that by accepting them, AT&T would be agreeing to enter later 
into a franchise agreement in advance of delivering video.

AT&T's suit alleged pre-emption of the city action by federal law, 
violations of the First Amendment and contracts policy, as well as state 
law violations. Chesney deferred the state arguments to state court. She 
dismissed the federal counts, but AT&T has 20 days to refile on those counts.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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