SBC Continues Collision Course With Local Govts Over Video Rights

SBC Communications isn’t swerving — yet — from its plans to deliver video to homes without the local government approvals known as “franchise agreements.” Cable operators cannot distribute video without franchise agreements; the requirement usually gives local governments negotiating power for a percentage of local revenue, items like public access, customer service guarantees, tech or infrastructure expenditures.
While Verizon is trying to obtain franchises, a slow process under the best circunmstances, SBC insists IPTV is not covered by franchise regulations because it is techologically different. Cable ops want the phone companies treated the same way, in a tightrope walk that’s the flip side of phone companies insisting their new competitors should be treated as they are or the rules should be removed for all. SBC COO Randall Stephenson warned at an analyst meeting Thursday: “If we have to go through and get 2,000 franchise agreements, we won’t build this in three years. We’re going to have to do something to make this quicker or it’s going to hit a brick wall.”
– It’s going to take more than the Fantastic Four to keep SBC from hitting the wall. Expect a lawsuit from at least one local government at launch, if not before then.

Comments have been disabled for this post