BY K. C. NEEL
Soap opera writers could learn a thing or two about complicated storylines by tuning into the drama that continues to unfold between the city of Jacksonville, Fla., and its cable provider AT&T Broadband. Last week the city's mayor, John Delaney, opted to revoke AT&T's franchise, which serves some 200,000 customers in the area, after the two sides failed to come to terms on a settlement that had been in the works since June. City council members will vote on the revocation Nov. 1. AT&T vows to fight any move to push them out of the city, according to spokesman Sarah Eder.
?I am not convinced this can be fixed at this point,? Delaney says, ?and that is a big change for me. I was all for working this thing out in June. But they have misrepresented themselves several times since then. You've got a company with a lot of problems here and a city that has just had it at this point. All they had to do was follow the minimums of the contract and show they care. But they haven't.?
AT&T and Jacksonville officials have been sparring for almost two years over a raft of customer service problems. Things had deteriorated to the point where earlier this year a group of customers filed a class-action lawsuit against the MSO. The suit was then extended to all Florida AT&T Broadband customers. Now the plaintiffs are asking to extend the suit nationwide.
Here's where things started to break down, says Matt Liebowitz, the city's outside counsel. ?AT&T wants any settlement to be used as a defense in the class-action suit and the city is saying ?No way,?? he says.
Infighting between cities and MSOs isn't unique to Jacksonville. Just last week Iowa City, Iowa, officials notified Mediacom Communications that they plan to fine the MSO $75,300 for various alleged contract violations.
AT&T claims Delaney wants to revoke its franchise so he can give it to a group of as yet unidentified former cable operators with whom he is friendly. AT&T is also balking at a new city council plan to keep and add to a $7 rebate AT&T promised each of its customers as part of last summer's original settlement talks. Council president Jerry Holland wants to use the money for new fire trucks and school computers.
THE NEXT QUESTION:
- If the council backs the mayor and votes for revocation, will courts uphold the decision?
- If the city successfully revokes AT&T's franchise, would it buy and run the system or broker a deal with a third party?
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