AT&T Casts About

Todd Chanko | June 14, 2006, 08:45 AM

Yesterday's announcement by AT&T that it would gladly carry the newly minted digital programming offered by the nation's newly digital broadcast stations is sure to drive a further wedge between the MSOs and the FCC and help smooth the way for telcos in the franchise debate. It also highlights how IPTV is not limited by the bandwidth constraints confronted by cable and satellite.

However, following the law of unintended effects, AT&T's position could backfire in another corner of media negotiations: net neutrality. While the telco advocates opening its pipes for all manner of traditional multichannel video programming, it may be more difficult for it to argue against net neutrality for its broadband services. Of course, AT&T might retort that it can do what it wants with its infrastructure - and if it wishes to offer multi-casted TV programming on one leg of its triple-play but charge differentiated fees to bandwidth-eating companies operating on the Internet, it should be able to do that, as well.

Yet, AT&T may have painted itself into a corner. Robert Quinn, Senior VP for federal regulatory affairs at AT&T was quoted as saying "We support multicast must-carry." If the company, whose stock is up 13.2% year-to-date, supports federally mandated use of one communication platform, can it realistically oppose another?