AT&T Stiffs Chicago Suburb Posted Tue Aug 29, 2006, 9:49 AM ET

If you live in Naperville, Illinois and want telco TV as an alternative to cable and satellite providers, you're out of luck. AT&T has dropped the Chicago suburb like a bag of dirt. Naperville was willing to sign a franchise agreement that would have brought AT&T's Project Lightspeed—a combination of television, broadband, and telephone service—as long as all residents were eligible to subscribe to the service. AT&T walked away, an executive pouting: "Nowhere in this country has AT&T agreed to a build-out requirement." Then again: "We have an economic incentive to make the service as widely available as possible." But: "What we're not willing to do is make a commitment in 'x' number of months." However, AT&T actually did sign an agreement with nearby North Chicago to provide video service within 18 months. Confused? Here's the catch: that agreement doesn't specify next-generation Internet-based video. The folks in Naperville charged AT&T with making a scene in an attempt to strong-arm Congress into passing pending legislation providing telcos with a national franchise agreement that would end-run municipal governments. A Naperville council member commented: "We have some intellectual dishonesty taking place." See coverage in ArsTechnica and the Chicago Tribune. More tomorrow.

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