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AT&T Targets Michigan Operators

By Steve Donohue -- Multichannel News, 11/30/2006 12:37:00 PM

AT&T plans to turn up the heat on Comcast and other cable operators in Michigan, saying Thursday that it will invest up to $620 million in the next three years to build a new fiber network for its pay TV and high-speed-Internet services.

The move follows passage of a bill (6456) in the Michigan House of Representatives that could eventually see statewide franchises awarded to AT&T and other providers.

AT&T also said it plans to hire 2,000 employees across Michigan in the next three years to upgrade its fiber network and install its U-verse TV service and other advanced services in customer homes. About 1,200 of the new jobs will be filled by the end of 2007, the telco added.

The Michigan bill, which passed the House Nov. 14, still must be approved by the Michigan Senate. The bill would allow for statewide franchises that would place a 5% tax on providers’ gross revenues in a jurisdiction, in addition to a 1% tariff for community-access facilities.

“We stand ready to make a historic investment in network and human capital in Michigan. Video-reform legislation holds great promise for our state, and we look forward to delivering new video options to Michigan consumers,” AT&T Michigan president Gail Torreano said in a prepared statement.

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