AT&T Scraps Plan to Launch U-verse in Tennessee

6:30 am on May 28, 2007 | Category: Business, Editorials, Regulation, Telecom Services, Television

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America’s largest telephone company, AT&T Inc., is backing off an ambitious plan to roll out its U-verse television service throughout Tennessee and compete with traditional cable companies in over 70 cities across the state.

The telecom giant made its decision late last week after state lawmaker, Steve McDaniel, withdrew a piece of legislation that would have established statewide cable franchising throughout Tennessee, amid heavy opposition from local governments and franchising authorities.

AT&T says that the bill would have increased competition in the pay-TV sector, by presenting viewers with another option aside from cable and satellite providers.

Opponents of the legislation, however, claim that it would have allowed AT&T to cherry-pick high-income neighborhoods for the service, potentially widening the so called “digital divide” between rich and poor.

As more and more U.S. states adopt streamlined cable franchising processes, however, video regulation at a local level is looking like an inefficient obstacle to fair market competition, rather than a measure to protect underprivileged consumers.

Rep. McDaniel will consider reintroducing the statewide cable proposal sometime next year, but for the mean time, it looks like Tennessee customers will have to do without the U-verse service.

John Bright, a Nashville-based telecommunications analyst with the equity research firm, Avondale Partners, says that AT&T will likely focus its pay-TV efforts on the 13 states that have already established a statewide regulatory process, rather than navigating the tricky waters of local franchising in jurisdictions like Tennessee.

It seems to me as if a whole new “digital divide” is forming between states, and Tennessee just ended up on the wrong side…

Editorial by Jeremy Maddock.

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    5 Comments »

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    1. I’d like to have a longer discussion with the person who wrote this article. It was sent to me out of context so when the author says “It seems to me…” I don’t know who “me” is.

      There are several sides to the issue and if I knew who “me” is we could unpack them.

      Elliott

      Comment by Elliott Mitchell — May 28, 2007 #

    2. Sorry if I wasn’t very clear… the post is categorized as an editorial.

      I’d love to hear your take on the issue…

      – Editor.

      Comment by Jeremy — May 28, 2007 #

    3. This is really frustrating. Nearly all places in Tennessee only have one choice in cable-tv service. If it is a rotten company, they have no other cable alternative.

      Also, many apartment complexes charge an additional monthly fee if one wants to use a dish to receive television. This is irritating, and for those on limited budgets makes dish television financially unavailable.

      I was really looking forward to ATT’s UVERSE coming to Tennessee. I already use Bellsouth (now ATT) telephone and internet services.

      As a consumer I would like the option of choosing a company that gives me both quality product as well as quality service. As things are in Tennessee, for me, I don’t have that option.

      Currently I watch a few digital channels on the air-waves… they are free. And until things change, that’s all I’ll be able to watch.

      Comment by tony — June 29, 2007 #

    4. I am currently a subscriber to Charter Communications cable TV. The quality of tranmission is excellent. However, I am finding that I am missing many of the opportunities for viewing that AT&T UVerse wourld provide. I have lived in a city in which the competition for cable service was opened and the quality of the programming was significantly improved by all providers. Tennessee has missed a significant opportunity and I think our state legislators did not have the consumer’s best interests at heart in this matter. I sincerely hope that the measure can be reintroduced next year, passed, and consumers can win again.

      Comment by Mel Beamon — November 19, 2007 #

    5. I was a U-Verse customer for two years when I lived in TX. I absolutely loved it! I recently moved to TN, and was very disappointed that the service wasnt available here. I have Charter Communications now, and it will do, but I am not happy, I guess mainly because its not what I wanted. Hopefully it will be available in the future.

      Comment by Amber — April 25, 2009 #

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock