CITY HALL

Suit: City giving Google, AT&T unfair edge

Phillip M. Bailey
@phillipmbailey

Louisville's largest cable and internet provider is taking the city to federal court months after asking Mayor Greg Fischer to ease regulations that allegedly give other companies an unfair advantage.

Charter Communications said in a suit filed in U.S. District Court last Friday that the city’s franchise agreement violates the company’s constitutional rights. It alleges the city is allowing competitors Google and AT&T to operate under different rules while offering similar services.

Among the differences Charter has cited compared to Google’s franchise agreement, for instance, are being required to provide free internet and cable to dozens of city buildings and “costly government channels, as well as a studio for public access channels.” It further asserts the city "imposes substantial costs and other burdens” that impact its ability to provide cable programming, on-demand television and high-speed internet to customers.

"The current situation is like requiring the University of Louisville to use the NBA 3-point line, while its opponents use the closer college line," said Mike Pedelty, a Charter spokesman. "More burdensome regulation inevitably means a higher cost to do business and ultimately higher prices for customers. We're simply asking the court to ensure the equal treatment state and federal law require.”

Fischer spokesman Chris Poynter declined to comment for this story citing pending litigation.

The suit comes three months after Charter raised concerns about the regulations to the mayor's office. In a July 28 letter, Charter said there was "no justification for different regulatory treatment" and called on Fischer to intervene.

Fischer’s general counsel, Kellie Watson, said in August that Charter had ”raised some interesting issues and ideas.” She said the administration would need to consult with the county attorney's office before taking any action given that the franchise agreement involves federal regulations.

Poynter declined to comment when asked what decisions came from that legal consultation. Charter alleges the city “politely” declined to deal with their concerns.

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The suit says the company does not object to other cable and internet providers coming into Louisville "but fair competition requires that the government, whatever it motives, treat similarly situated speakers the same and not unfairly weight one side of the regulatory scale."

Charter bought Time Warner Cable this year for $65 billion, making it the second-largest TV and internet provider in the country. It obtained the local cable-television rights in December 2015 after it pledged to city leaders that it would greatly improve internet access and download speeds at a lower price.

Louisville is already the subject of an ongoing legal joust between communication giants since the city passed its so-called "One Touch Make Ready" ordinance that allows Google Fiber and other high-speed internet providers to install new equipment on utility poles without notifying the companies that own them.

The measure was heralded by city leaders as a way to attract Google Fiber to Louisville, but there has been little movement since. In August a report in The Wall Street Journal said Google is rethinking its strategy for deploying high-speed internet to U.S. cities.

Both AT&T and Charter Communications have filed a separate federal suit against the city over the "One Touch Make Ready" ordinance in federal court.

Reporter Phillip M. Bailey can be reached at (502) 582-4475 or pbailey@courier-journal.com.

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