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from: Blogging Broadband

Congratulations, AT&T?

It has been a little more than six months since Michigan’s state legislators passed 2006 PA 480, the “Uniform Video Services Local Franchising Act.” The purpose of the new law was to streamline the video franchising process so more competition in cable services could develop. Traditionally, a video provider would have to negotiate with a local government for a franchise which would authorize the company to provide video service to the community’s residents. AT&T and other large phone companies claimed that negotiations with each local government were too time consuming and would hamper the rollout of competitive services. So Michigan’s state legislators gave AT&T what it was after: A process that allows the company to walk into any city hall and get a video franchise within 30 days, without any negotiation.

So now that this new process has been in place for better than six months, has it worked as state legislators intended? Let’s test how the law has worked for you, by asking questions only you can answer. Again, Michigan’s new statute was intended to increase competition for cable companies which, in turn, would mean lower prices and better customer service. So here’s your first question: Has Michigan’s new law meant that you have a new choice in video providers? You can check to see if you can get AT&T’s U-Verse video product by clicking here. When you get to the site, click on “Availability” and fill in your AT&T phone number or address. Unfortunately, one of the best bets on the planet is that your address can’t get U-Verse service. So here’s the second question: Has your cable bill gone down because of the competition created by Michigan’s new law? … I think I hear mutterings about pigs flying, snowballs in hot places, and other things that shouldn’t be repeated. . .

AT&T has recently been reported as saying that it has launched wireline video service in 65 communities in the metropolitan Detroit area, and that it has roughly 1,500 customers. Congratulations for those accomplishments are certainly due. The video business is tough, capital intensive, and time consuming to enter — AT&T deserves commendation for giving it another try. But by any measure, 2006 PA 480 has fallen well short of its intended goal. It’s been six months, and almost 97% of Michigan’s communities are still without a wireline video alternative, whether offered by AT&T or anyone else — even if you are lucky enough to be in one of the select areas where AT&T has launched its U-Verse service, it would be a mistake to automatically believe that the service is available to your home. Anecdotally, it seems that less than 1 in 4 homes can actually get the U-Verse service, even in most communities where it has been launched. And if you can get the service, installation, it is said, can take an entire day.

Competition in video service is good for everyone: good for the companies, good for the communiites, and good for customers. But don’t hold your breath. 2006 PA 480, brought to you by Michigan’s state legislators, probably won’t be bringing you more video competition anytime soon.

Is U-Verse available to you, or do you already have the service? Let me know by providing a comment to this article . . . I’d love to hear about what Michigan’s new law has meant for you.