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AT&T drops gauntlet in broadband service fight

The firm takes on Bright House and Verizon.

By MADHUSMITA BORA and JENNIFER LIBERTO, Times Staff Writers
Published September 21, 2007

AT&T Inc. said Thursday it will make a $750-million investment in broadband infrastructure in Florida. But, the company that acquired BellSouth last year remained tight-lipped on details, saying the information was competitive.

This will allow AT&T to bring enhanced broadband and video entertainment services to Floridians, the company said.

AT&T is a dominant player on the East Coast including areas such as Miami, Orlando and Daytona Beach. But it's unlikely Tampa Bay customers would benefit from Thursday's announcement.

"They would be one of the first telecommunications companies in the country," said Bob Elek, Verizon spokesman, "to go out of franchise" - meaning expand beyond the territory served by BellSouth. "Not that it can't be done, but there's so much work to do in the area you serve."

Verizon spars with rival Bright House Networks pitching combinations of phone, Internet access and cable TV services in the Tampa Bay area. Both companies say they welcome the competition.

AT&T's move follows the passage earlier this year of a state law that makes it easier for telecommunications companies to move into TV. Company officials were joined by Gov. Charlie Crist for unveiling the plans.

"This means a new world of communications entertainment for Floridians," said Marshall Criser, president of AT&T Florida, at a Tallahassee press conference.

But what Criser wouldn't say is where the money would be invested or over how many years. State officials welcomed the investment.

"Whether it's your telephone, your Internet or your television, the more choice you have, the better opportunity the consumer has to be a consumer that's getting a fair deal," Crist said.

Kauchal Chari, a professor at the College of Business at University of South Florida, says for a company such as AT&T,$750-million is not a whole lot of money. But he agrees with Crist that it's good for consumers.

Joe Durkin, spokesman for Bright House Networks, said he was surprised the AT&T went all the way to Tallahassee to unveil a $750-million investment.

"That's not a lot of capital in this business," he said. "Bright House has invested much more than that just in Tampa alone."

AT&T said part of its Florida plans include introducingU-verse TV service to some Florida customers, transmitting TV signals over a high-speed, broadband Internet connection.

Information from the Associated Press was used in this story.

Madhusmita Bora can be reached at (813) 225-3112 or mbora@sptimes.com

[Last modified September 20, 2007, 23:06:04]