AT&T Wants to Add TV Service Unincorporated Areas Targeted for Lightspeed

By Lisa Smith Daily Herald Staff Writer

AT&T wants to install equipment to offer its controversial Project Lightspeed video-over-Internet service to residents of unincorporated Kane County.

Project Lightspeed provides high-definition television programming, video on demand and other services through a fiber- optic network, allowing customers to watch television over phone lines rather than via cable or an antenna.

The company has applied for permits to construct a technological infrastructure upgrade on county rights of way.

The concept is controversial because it has spurred several lawsuits. AT&T is suing North Aurora and several other communities, contending it does not need to enter franchise agreements with them like other TV service providers because AT&T’s service is inherently different from cable television.

A proposed state law backed by AT&T would allow alternative video service providers like AT&T to seek approval from a single state agency rather than negotiate separate agreements with each municipality and county, thereby simplifying the process.

To date, four Chicago-area municipalities have signed contracts with AT&T to provide Project Lightspeed. The latest, Mundelein, signed an agreement last week, joining Wayne, North Chicago and Bellwood.

Kane County earns $420,000 annually through nine cable franchise agreements covering different geographic areas of the county. Eight agreements are with Comcast and the ninth, in the southwest corner of the county, is with Mediacom.

AT&T has proposed a three-year agreement with the county in which it would pay as much as the cable companies. Project Lightspeed constitutes a $4.6 billion investment, AT&T said.

County consultant Tony Hylton, president of Broadband Technology Associates, is negotiating on the county’s behalf with AT&T and the cable companies. Hylton provided an update to members of the county board’s committee of the whole last week. The committee did not voice any concerns or take any action.

lsmith@@dailyherald.com

(c) 2007 Daily Herald; Arlington Heights, Ill.. Provided by ProQuest Information and Learning. All rights Reserved.