Speaking today at Citigroup’s Global Entertainment, Media and Telecommunications Conference, AT&T CFO Rick Lindner downplayed the criticism of the company’s idea of charging unaffiliated service and content providers for access to the broadband network. (Webcast can be found here.) “It’s no different today from what you see in other parts of the industry. Content providers are entering into agreements with wireless providers every day to provide content,” Lindner said.
He stressed that AT&T’s proposal to charge for upgraded or interconnected broadband throughput, or what some are now calling the two-tiered Internet, won’t hinder customers’ ability to access anything on the web. “We’re not going to block our customers from accessing…any content from their broadband or DSL connection,” he said. “However…the reality is that business models are changing and I think there are opportunities..to enter into commercial arrangements that are beneficial to both companies and beneficial to customers as well.”
“There always will be some tension between companies that own and develop content and companies that have customer bases, networks and distribution of content,” Lindner said.
On the franchising front, Lindner stuck to AT&T’s position that its Project Lightspeed video service, which uses the DSL platform for content delivery, is not subject to cable franchising. “I’d reiterate that when you talk about our Lightspeed platform, our Lightspeed platform is an IP-based interactive platform that is not subject to the franchise requirements,” he said.
Moreover, cities that want to kick up dust for AT&T in this context might be sorry, he seemed to imply. “We’re working with a number of municipalities that welcome the jobs and the prospects this will bring,” he said. “We will guide investment dollars to those areas where we have a clear line of sight to the development of those services.”
Cynthia Brumfield at 2:37 PM|Comments(0)
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