More on AT&T and PEG Channels
In a previous post, I indicated how AT&T has been collecting PEG fees from its customers while not providing PEG channels. It turns out my complaint was pointed at the wrong entity.
After filing a complaint with the MPSC (Michigan Public Service Commision) and speaking with folks at the Michigan Attorney General’s office, it became evident that AT&T was acting in accordance with the law.
In 2007, Public Act PA 480 of 2006 (also known as 
The Uniform Video Services Local Franchise Act) was signed into law. The act (among other things) requires video service providers to collect PEG fees on behalf of municipalities and turn 100% of those fees over to them. In many cities, this has added up to tens of thousands of dollars.
So, what we got was a great law… with some unintended negative consequences. It seems that our legislators forgot one important point. While the act requires video providers to transmit PEG signals to it’s customers, it does not require municipalities to pass the PEG signal to the video providers… OOPS!
It’s been 2+ years since the act passed, and AT&T Uverse customer continue to get taxed for services not rendered.
It’s worth noting that the oft-maligned city of Detroit has found a way to get this done for their residents.
Next step… work to get the law amended.
I don’t know what chance there is to get the law amended. After all it’s not like our government isn’t willing to “Service you Tuesday for your Tax receipts today” (Sorry Wimpy)
The council and AT&T supposedly solved this problem almost 6 months ago. Seems like council needs to address this with AT&T customers.
The law needs to be amended. Most municipalities won’t move quick enough on their own without it.
I had the opportunity to speak to one of the original sponsors of the bill today. He told me it was a major fight just to get to the point we’re at today… but that it certainly needs tweaking.
There are about 8 separate amendments to PA 480 floating around the state legislation right now. Unfortunately, none of them seem to address consumer rights. Farmington Hill’s former mayor and now state rep. Vickie Barnett is sponsoring one that would raises cable taxes. She is the primary reason why Farmington Hills has not moved one bit in providing PEG channels to their AT&T customers.
As far as Novi goes… I trust that this issue is currently being addressed.
And I wouldn’t hold your breath on the legislature going out of their way to push municipalities on this issue. While cities and towns may be pocketing extra tax money on this item they are losing considerable money on property and taxes. A mandate from Lansing won’t be first on many legislatures list, especially those that represent small outstate communities.
A raise in cable taxes sounds like a means of generating revenue, not protecting consumers.
If this is a City of Novi, Farmington and SWOC issue, it needs to be solved locally. Taxation and Lansing involvement will raise expenses FIRST and solve the problem much, much later.