Waterford Township and AT&T are currently at loggerheads over provisions of a franchise agreement, according to township Supervisor Carl Solden.

"Up until the first of this year, local governments were responsible for issuing cable franchises to every operator that wanted to provide service in the community ... making sure cable operators didn't disrupt the local rights of way and providing a variety of protections for local residents," said John Kreucher, an attorney with Howard and Howard representing Waterford.

That all changed on Jan. 1, when a new franchising law and system was enacted to discourage cable monopolies. The new law, according to Kreucher, states that "pretty much anyone can walk into any community and ask for a cable franchise — and the community was more or less obligated to provide one."

The franchise agreement process was streamlined under the new law. Cable providers no longer have to negotiate franchises with individual communities. Instead, the Michigan Public Service Commission created a standardized franchise agreement, which the interested service provide can send to a local government with jurisdiction over a community in which the company wants to do business.

"There are a couple of blanks in that document," said Kreucher. "One blank, for example, is the franchise fee, which is typically 5 percent of the cable (providers) annual gross revenue in the community, and that is paid (to the community) for use of the public rights of way.

"The second blank in the form relates to a public, education and government access (PEG) programming fee, and under the new state law, communities could require (the new service provider to pay) whatever the incumbent operator — which in this case is Comcast — was charged."

New service providers can't be required to pay higher fees than the incumbent providers, thereby "keeping everything level and fair," according to Kreucher.

The disagreement between AT&T and Waterford began when Waterford officials researched how much Comcast was paying in franchise and PEG fees and asked AT&T to pay 1.96 percent of its annual gross revenue to the township to support PEG — the same rate paid by Comcast. The township also filled in the standard 5 percent franchise fee in AT&T's proposed agreement, and sent the contract back to AT&T.

"Basically, (the township) said 'As long as you agree with these numbers, you can go ahead with your franchise,'" Kreucher.

Shortly after receiving the returned document, AT&T officials expressed opposition to the 1.96 percent PEG fee, alleging Comcast wasn't paying the same amount.

"They didn't necessarily agree they were going to pay it," Kreucher said, "and that, frankly, is the issue the community has been trying to work through ever since."

AT&T is enjoying all the benefits of an approved franchise agreement, such as using in the public rights of way to bring expanded services to the township, but has never formally agreed to pay the township any fees.

According to Kreucher, Comcast paid the township up front with "hundreds of thousands of dollars" worth of grants and equipment, instead of paying an annual PEG fee.

"Since AT&T is just starting up here, the only way to make this fair is to convert that amount into an equivalent percentage, which turned out to be 1.96 percent."

According to Kreucher, AT&T has yet to agree with this figure, and has moved forward with plans to provide cable television service in the community.

"When you have a contract, you have to have both parties agree, so, from our perspective, we really don't have an agreement," Kreucher said.

AT&T Spokesman Joe Steele disagrees.

"I wouldn't say we're disagreeing with it," he said. "AT&T is currently operating under the 1.96 percent (PEG fee), and providing video choice. There has been no complaint filed or anything regarding that."

"I think AT&T has reserved rights to revisit (the PEG fee issue)," he added, "but right now we're operating under that franchise agreement and we are more than happy to be delivering video choice to the township's residents."

Waterford Township officials want "video choice," but, according to Kreucher, that's not the only issue.

"Waterford wants AT&T to offer competitive service," he said. "We think it would be good for everybody. However, the township also wants to make sure that everyone agrees with the terms of their presence there."

Waterford Township Supervisor Carl Solden agrees.

"We'd just like to be on a level playing field with both companies, so they are both even across the board with franchise fees," he said. "Without a doubt, I think competition is good, and I think our residents deserve that. It just comes down to having a level playing field."