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AT&T Retreats from Previous Position and Agrees to Accept Mandated Open Access Provision in Franchise Renewal

openNET Coalition Applauds Pittsburgh’s Steps to Preserve Customer Choice

Washington, DC (28 December 1999) -- In a major victory for Internet users, the Pittsburgh City Council today voted 6-1 (with one abstention) to become the first local government in the nation to require -- as part of its agreement to renew the local cable franchise license -- that AT&T Cable Services accept non-discriminatory open access.

"Today’s vote in Pittsburgh was a win for consumers," said Rich Bond, co-director of the openNET Coalition. "AT&T was forced to accept a self-executing, non-discriminatory open access provision that guarantees that if AT&T voluntarily or involuntarily signs an open access agreement with any other governmental entity or becomes subject to an open access requirement anywhere else in the United States, it must offer the same terms to Internet service providers operating in Pittsburgh."

The Pittsburgh open access provision could be triggered as soon as early 2000 when the Ninth Circuit U.S. Court of Appeals is expected to rule on AT&T’s appeal of a lower court decision that the city of Portland, Oregon had the legal authority to mandate open access. Should the court rule in Portland’s favor and thereby allow consumers to choose their ISP instead of being forced to accept AT&T affiliate Excite@Home, Pittsburghers would automatically have the right to choose among multiple ISPs. The Pittsburgh open access provision could also be triggered by votes over the past two weeks by local authorities in Culver City, CA and Henrico County, VA, as well as previous votes in Broward County, FL and several Massachusetts communities.

The Pittsburgh agreement is unique because it represents the first time AT&T has voluntarily agreed to accept a self-executing open access requirement. It also stands as a significant deviation from AT&T’s announcement in early December that it would provide access to unaffiliated ISPs on its cable systems, but only after its exclusive contract with Excite@Home expires in 2002. Numerous prior votes by local governments in favor of open access have occurred in the context of franchise transfers.

Pittsburgh is the first franchise renewal vote in favor of open access. As the Pittsburgh open access requirement may be triggered early in 2000, AT&T’s contract with Excite@Home no longer stands in the way of consumer choice of ISPs.

Source: Open Net Coalition, 28 December 1999

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