Telecommunications giant AT&T is promoting the passage of controversial cable legislation in Michigan by promising that the industry-friendly bill will create jobs. According to the Lansing State Journal, AT&T issued a news release claiming that it would hire 2,000 workers and would invest up to $320 million in Michigan if proposed cable legislation becomes law. AT&T, who favors the passage of HB 6456 because it eliminates the need to negotiate franchises with each community in favor of a statewide franchise–thereby allowing AT&T to provide video service much sooner in Michigan–has stated that if the bill does not pass “as is” that it might not invest in Michigan. This threat of pulling planned investment in the economically troubled state of Michigan follows AT&T’s PAC earning a spot on the top 150 PACs in Michigan (the AT&T Michigan PAC had $187,647 in 2006 [the Comcast Corp PAC had $187,000 as well]) and earlier statements by AT&T that for each day the bill is not passed, cable subscribers lose $1.8 million dollars. AT&T arrives at this amount because current franchise agreements–under which cable companies pay local municipalities a negotiated fee for using a municipality’s “rights of way”–would be eliminated in favor of statewide agreements that would require the cable corporations to pay significantly less money to municipalities. This potential loss of revenue has caused the Michigan Municipal League to oppose the bill as the League has determine that it will result in a loss of $47 to $57 million in revenue for local municipalities and will consequently eliminate or reduce public access television.
Even as AT&T continues lobbying, organizations such as the Michigan Municipal League, cable access centers, and media reform activists continue their efforts to oppose the bill. In addition to holding rallies, delivering testimony in Lansing, and calling legislators, opponents of the bill have proposed passed resolutions supporting local franchising.
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