Pa. Town Looks to Oust AT&T
By Linda Haugsted -- Multichannel News, 4/17/2001 12:44:00 PM
A Pennsylvania hamlet is embracing the role of David, asking a court to appoint a trustee to operate its local cable company rather than Goliaths AT&T Broadband or Comcast Corp.
In a suit filed in U.S. District Court for the Western District of Pennsylvania, the Borough of Blawnox, a Pittsburgh suburb, wants the court to oust the operators.
Officials said in the suit, filed April 13, that they denied consent for transfer of the system, operating as Comcast Cablevision of the South Inc., to AT&T Corp. Regulators noted, though, that the transfer expired anyway, and borough officials alleged that the operators deceived the community about the true ownership status after the transfer denial.
'It is clear to me, based upon AT&T's arrogant and high-handed attitude toward subscribers, coupled with wholesale programming changes, that AT&T is really calling the shots,' borough council president Sam McNaughton said in a prepared statement.
The actions of the operators have caused the regulators to distrust the cable companies. Since the 1,626-population borough isn't able to staff a municipal cable overseer, it has to be able to trust the company it authorizes to enter residents' homes, explained Fred Polner, an attorney for the community. If the community can't trust the franchisee, the operator fails the 'legal ability' test communities apply when considering a transfer, he said.
Further, the suit asks the court to enjoin either company from operating the system and for an extended refranchise deadline for the one that expired March 30.
AT&T Broadband spokesman Steve Lang noted that municipalities representing 654,000 cable customers approved the Comcast-AT&T transfers. Tiny Blawnox was the only exception. He expressed confidence that Comcast -- the entity at the refranchising bargaining table in Blawnox -- will be able to work out a compromise.
'This sounds like a suit filed in anger,' opined cable attorney Paul Glist.
In the past, communities have withheld transfer approval, but the operator has continued to run the local system. For instance, Los Angeles withheld its approval of Group W cable to Century Communications Corp. for years, but the new owner continued operations.
'Courts have told cities that they can't just pull the plug,' Glist noted.
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