NewsChannel 5.com - Nashville, Tennessee - Sources: Cable TV Options To Widen For Tennesseans

Sources: Cable TV Options To Widen For Tennesseans

NASHVILLE, Tenn. - State lawmakers are close to passing a bill to give consumers more choices for cable television providers.

Last year, AT&T tried to enter the Tennessee market. There was a lot of resistance from the cable industry, which didn't want the phone company to just come in and do business wherever they wanted.

Cable providers have spent millions laying the infrastructure and negotiating deals in each of the areas they serve.

It appears that company and lawmakers have worked out a deal.

Last year, state Sen. Bill Ketron tried to pass a bill that would let other cable companies compete in Tennessee.

"I think it would be wonderful," the Republican from Murfreesboro.

Public support existed, but the bill died.

This year, lawmakers revisited the issue. Private negotiations took place in a conference room, sometimes three times a week since January.

"Comcast, Charter, the cable guys on one side, AT&T on the other side, all the attorneys, working out the details," Ketron said.

Sources said a deal has been worked out, one that lawmakers will eventually approve. Cable companies will be allowed to do business in Tennessee. Instead of paying a 3 percent franchise fee to the local municipality or county, the companies will pay 5 percent.

"Hopefully we will see prices go down whether you are with Charter or Comcast," Ketron said.

The cable bill still has to go through several final votes before it is a done deal on Capitol Hill. It could be November or December before Tennesseans are able to choose from different cable providers.

A favorable aspect of the deal, sources said, included the prospect of 2,000 new jobs when AT&T comes in to do business.

The top phone company may not be the only business interested in Tennessee. When similar legislation passed in North Carolina, dozens of businesses applied to offer multi-media services in the state.