AT&T pledges $750 mln in Florida broadband spending
By Michael Peltier
TALLAHASSEE, Fla. Sept 20 (Reuters) - Responding to a new Florida law, AT&T Inc (T.N) said on Thursday it would spend $750 million to expand a broadband network to compete directly with cable-television providers in Florida.
AT&T Florida President Marshall Criser said the planned spending resulted directly from a law passed earlier this year by Florida legislators that backers have said will increase competition and lower telecommunications costs for consumers.
Criser declined during a news conference to say which markets in the state would be affected first, saying information would be released as the technology was ready to be put on line.
State lawmakers in May passed a controversial measure that allows telecommunications companies to compete directly with cable franchises for video customers across Florida.
The law allows carriers to set up statewide franchise, thus preventing cities and counties from requiring exclusive contracts and collecting franchise fees from providers.
AT&T plans to bundle television, telephone and Internet service to consumers over a fiber optic network similar to DSL. Other telephone companies have already launched televison/telephone bundles in some areas of the state.
The issue has sparked debate over the past several years as communications giants such as AT&T battled it out with cable service providers over access to consumer markets. Following years of intense lobbying, telephone companies prevailed.
The law prevents companies from cherry picking lucrative neighborhoods and denying coverage based on race or income, but does not set a timetable to build a network.
Gov. Charlie Crist, speaking to reporters at the same news conference, hailed the AT&T decision, but said he intends to reintroduce legislation to give the state the authority to sanction companies that do not live up to the law.
