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Utility department signals AT&T's IPTV service won't be regulated like cable
[May 06, 2006]

Utility department signals AT&T's IPTV service won't be regulated like cable


(New Haven Register (New Haven, CT) (KRT) Via Thomson Dialog NewsEdge) May 6--NEW BRITAIN -- In a move designed to lower the cost of cable TV service, the state Department of Public Utility Control indicated Friday that AT&T Inc.'s planned Internet-based television service will not be subject to the same regulatory requirements as cable companies.



In a draft decision, the DPUC said its action should lead to "real choice for consumers."

A final decision is due June 7 after a period for comment, and DPUC commissioners rarely deviate significantly from their draft decisions.


AT&T plans to roll out its version of Internet protocol television, or IPTV, by the end of the year. It will use AT&T's broadband network to deliver voice, data and television services to customers via an Internet protocol server.

Friday's decision caps months of debate pitting AT&T against the state's cable TV companies, which argued that IPTV should be subject to state regulations that require cable providers to obtain franchise agreements in each town they enter.

AT&T argued that IPTV is not a "cable service" because it uses the Internet rather than a broadcast system.

The DPUC determined that IPTV is a form of data streaming and therefore not subject to cable regulations.

"We believe the technology is the key, just as it is in Voice over Internet Protocol (VoIP), which is Internet telephone service but is unregulated, unlike legacy telephone service," DPUC Vice Chairman Jack R. Goldberg said in a statement.

John Emra, executive director of external and legislative affairs for AT&T, welcomed the decision.

"It's good for us but, more importantly, it's good for consumers," he said.

"It gives them a choice."

AT&T has not yet determined packages and pricing for IPTV, Emra said, but "obviously, we're in the marketplace and we need to be competitive." Paul Cianelli, president of the New England Cable & Telecommunications Association, said the DPUC has created a playing field that is not level.

"While we are still analyzing it, the DPUC's decision appears to strike a major blow against Connecticut's consumers, taxpayers, cities and towns, and low-income areas," he said in a statement. "Consumers only win when the playing field is level. The draft ruling would exempt a single corporation from the consumer protections, financial obligations and civic responsibilities required of all other video and high-speed Internet providers in Connecticut."

Attorney General Richard Blumenthal said he will fight the preliminary ruling, charging that an unregulated IPTV market would allow providers to "cherry pick" the wealthiest and most accessible customers, leaving the rest with no choice.

"IPTV has enormous potential to lower cost and expand choice," he said in a statement. "The state must guarantee that all citizens have access to those opportunities, while assuring continued public service programming."

DPUC commissioners rejected Blumenthal's argument. "The department is committed to public access and the company's commitments were critical to our approvals," Goldberg said, noting that AT&T's high-speed Internet service is available to 90 percent of Connecticut consumers.

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