State allows AT&T to offer TV service
The Illinois Commerce Commission gave the final nod Wednesday so AT&T can begin its statewide rollout of its U-verse video service -- a bone of contention with some suburban officials and a competitive pain-in-the-cable for Comcast.
AT&T will start working to build its network and offer area consumers a chance to have Internet protocol video services during a revolutionary time in the telecommunications industry. Service could start early next year in some areas, AT&T spokesman Andrew Ross said.
"This is a huge victory for both Illinois consumers, who will now have a real choice when it comes to selecting their video provider, and the Illinois economy," Ross said.
In June, the Cable and Video Competition Act became law and allowed AT&T to submit its application to the ICC to provide its video service. The state agency regulates utilities, including AT&T. Because new technology has often blurred the lines between telephone companies and multi-media services, the new law offered AT&T the chance to compete head-to-head against Comcast.
"Delivering next-generation broadband, voice and video TV services to Illinois families will require a significant amount of capital investment in the Illinois economy and requires new AT&T employees to build the network, install and sell our new U-verse video service to Illinois consumers," said Ross. "From our experience in others states, we know that it will be hundreds of millions of dollars and significant job creation."
The entrance of AT&T continues the competitive battle with Comcast, which also offers video, data and phone services.
"Comcast has already done what AT&T claims it's going to do in the future: Comcast brought Illinois consumers a real choice for local phone service, and today we add 1,000 new Comcast phone customers every day we do installations, most of whom have left AT&T," Comcast spokeswoman Angelynne S. Amores said.
"We have already made a $3 billion investment on broadband networks in the state. We have already actually added about 1,000 local new jobs this year to serve Illinois residents. AT&T is now trying to play catch-up because we've already built a network, already added jobs, and already delivered a real triple-play bundle to Illinois consumers," Amores said.
AT&T's U-verse service starts at what the company calls video super hubs, which acquire programming from providers. A central office will then distribute the programming to homes, which are connected by fiber optics or copper wires.
Package prices range from $44 to $129 per month, depending on downloading power and number of channels.
U-verse, part of AT&T's Project Lightspeed, has been controversial in many area suburbs.
Wheaton, Wood Dale, Roselle, Geneva, North Aurora, Itasca and Carpentersville were being sued by AT&T for preventing it from upgrading its network.
The towns said AT&T was required to follow the same franchising process as Comcast, pay the same fees for public rights of way, allow for services to all residents regardless of ability to pay and provide local access channels. AT&T argued it's not a cable company and shouldn't be treated like one.
In light of the ICC approvals Wednesday, those lawsuits now are in settlement talks, according to Ross.
The city of Geneva welcomed competition but it's been a bumpy road, Mayor Kevin Burns said.
"We believe the road ahead will be a lot smoother," said Burns. "We're now working with them on their final plans."