AT&T Uses U-Verse as FCC Bargaining Chip

As Federal Communications Commission (FCC) Chairman Julius Genachowski grapples with a decision on whether or not to reclassify broadband service in order to wield influence over it, AT&T is playing hardball by threatening to cut back on its U-Verse spending in light of additional government authority.

U-Verse is an AT&T IPTV service that offers high-speed Internet, phone and television programming and counts 2.3 million current subscribers. It is currently available to 24 million homes, a number expected to reach 30 million by the end of 2011. AT&T Chief Executive Randall Stephenson told the Wall Street Journal however, that FCC reclassifying of broadband from Title 1 to Title 2 would mean, “…we have to re-evaluate whether we put shovels in the ground.”

Ars Technica referenced an AT&T 2009 annual report in which the company stated it had decreased spending in U-Verse in the past year due to “the upgrades to our existing network become more mature.”

A Free Press spokesperson called AT&T out, stating, “AT&T has already slowed down U-verse deployment under the current Title I regime, so to blame the FCC for the company’s own investment decisions is simply disingenuous.”

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  1. 0
    hellfire7885 says:

    Wow, they’re just doing it all wrong. If anything they should be tryign to shwo they don’t need regulation, not making a case for regulation.

  2. 0
    Craig R. says:

    Cut back on spending? With the speeds we get compared to some parts of the world and the artifical caps that many of ’em now put in place, it looks like they’re not spending *any* money on HSI.

  3. 0
    Sora-Chan says:

    AT&T are really screwing up lately, example!

     I personally think AT&T has no right to make threats when they cant even handle their own systems >_>

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