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To: DEJ63 who wrote (5365)	2/12/1999 10:03:00 AM
From: Jay Lowe	Read Replies (3) \| Respond to of 29970

February 10, 1999 CONTACTS: Jane Hague (206) 296-1011 Greg Nickels (206) 296-1008 County Budget Committee denies TCI cable franchise transfer The King County Budget and Fiscal Management Committee today agreed unanimously to deny a request from TCI to transfer control of its cable franchise in unincorporated King County to AT&T. The committee also added a provision aimed at protecting the public from "eroding consumer choice" of expanded basic cable television service. The request to transfer control of the franchise from TCI to AT&T is part of the proposed AT&T/TCI merger, and is subject to county approval under the current franchise agreement with TCI. The proposal must now go before the full council for a final vote. If the full council agrees to deny the transfer, King County would be the largest local government in the country to take such an action. The denial of the franchise transfer would not jeopardize current cable service for unincorporated King County residents. "The issue here is competition. Approving the franchise transfer to AT&T would place high-speed cable access in the hands of a monopoly," said Budget Committee Chair Jane Hague. "This is a moment in time for King County to take action for unincorporated area residents. We are resolved in our position to protect the public interest and ensure that new technologies are open to competition." Councilmember Greg Nickels, vice-chair of the Budget Committee, added, "We are fighting to protect consumer choice in assessing all the information available through the Internet." Today's move by the committee is designed to protect choice in the next major technology leap, high-speed residential Internet access. The new mega-company plans to combine the pricing of its high-speed access lines with its own Internet Service Provider (ISP) called @Home. Consumers wanting to use another ISP, such as AOL, MSN or others, would be forced to pay extra. King County wants the company to provide its high-speed lines without forcing the consumer to pay for the company's ISP. The merger, according to Hague and Nickels, would violate the county's policy of open Internet access. Current King County law (under the King County Cable Act) prohibits anti-competitive and monopolistic behavior. The county also reserved the right, under the original franchise agreement with TCI, to require additional terms and conditions to protect the public interest when approving a transfer. "King County is a high-tech center, and other jurisdictions look to us for guidance," Hague added. "King County has a responsibility to ensure that unincorporated area residents receive the best service, whether its basic cable or new high-speed Internet access." In addition to denying the franchise transfer, the proposal requests that the county executive review consumer concerns regarding the erosion of choice between expanded basic cable television service and the more expensive digital cable offered by TCI. The proposal approved by the committee today is fed by a consumer fear that TCI's underlying goal is to require all cable subscribers to migrate to their more expensive digital cable by eliminating channels from basic cable. The executive must report back to the council no later than May 1, 1999. The County Council already has approved a "Consumer Bill of Rights" under a cable system upgrade agreement with TCI. Cable subscribers in unincorporated King County whose cable service has not been upgraded by next month will begin receiving a $5 per month credit from the company until they are upgraded.