The AT&T Corporation has requested from the Public Service Commission the right to have video potential capabilities in the communities of Cedartown and Rockmart.

In preparation for that move, Cedartown City Commissioners, at the January meeting, put in place a franchise ordinance that will allow the city to charge a five percent fee of the company’s billing within the Cedartown jurisdiction.

“Because video differs from their [AT&T] franchise presently, which is for communication service, and telephone and data link, we do not have a franchise ordinance that will allow us to collect the five percent fee if, in fact, they do come into the community,” explained City Attorney Mike McRae.

If AT&T does establish a package service including cablevision, it would offer competition to the one and only provider, Charter, in the area.

“The franchise ordinance at least gives us the right to charge the five percent fee and I hope it would encourage AT&T to come in and potentially offer a package service that would offer cablevision in addition to their other services,” McRae added.

Five percent is the maximum under federal law that can be charged, according to McRae.

The commission, without discussion, passed the motion unanimously. Commissioner Dale Tuck pointed out that this would be a win-win situation for the community.

Healthy competition between cable providers will be advantageous for consumers, city leaders agreed.

Additional revenue may not necessarily increase, however, if consumers swap companies, according to City Manager James Stephens. But, he said that residents should certainly benefit from the competition.

Cities can levy franchise fees on electric, gas, telephone and cable television companies and on other public utilities within the municipality that use the public rights of way for their infrastructure.