AT&T Says We Are Not Cable Television

With the third reading of the Project Lightspeed contract coming up fast, Lakewood City Council has much to consider.

The Council continues to listen to representatives from AT&T Corp., Cox Communications and Adelphia regarding AT&T's proposed Project Lightspeed. Through the new plan, AT&T would provide IP-based video, voice and high-speed Internet through fiber optic cables and copper telephone wires.

The contract for City Council to decide on is under dispute for differences in contracts. As cable companies, Cox Communications and Adelphia are required to have a franchise agreement with Lakewood. Because AT&T is a utility company and Project Lightspeed would deliver its services through fiber optic cables and copper telephone wires, AT&T is not seeking a franchise agreement.

Christy Frederick, Cox Communications director of public relations and governmental affairs, said the entrance of AT&T as a competitor to its cable services enacts the "level playing field" provision of its franchise agreement with the city, which means Cox would have to provide no more and no less than any other cable competitors.

"If you look at the contracts side-by-side, you would see material differences," she said. Cox came up with a list of 31 points of differences between Cox's franchise agreement and the proposed AT&T contract. Frederick focused on a few main points, namely the $75,000 application/renewal fee Cox pays and its I-NET, a dark fiber system that runs to city buildings, Lakewood Public Library and the public school district.

While the AT&T contract has similar provisions on some points and has met the "level playing field" provision in some areas, such as the 5 percent franchise fee, she said, it did not include an application/renewal fee or mention of I-NET.

The issues brought up by Cox are no longer issues, said Denis Dunn, AT&T director of external affairs. He said AT&T and the city law department worked them out during the negotiations.

"The issues that they raise - old news," he said. "All questions have been asked and answered. We've been able to come to terms with the city. We have a very good working relationship."
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Volume 2, Issue 14, Posted 3:03 PM, 07.11.06