SNET Secures Favorable Ruling, Positioning Company to Provide Television Programming in Connecticut Service Area

Strategic Insights -

SNET, a leading provider of communication services, has secured a significant victory in its challenge against the Cable Communications Policy Act of 1984. The U.S. district court in Connecticut has ruled in favor of SNET, allowing the company to provide television programming in its own service area. This development comes on the heels of Connecticut legislation passed in 1994, which allows cable companies to provide telephone service in the state. Several cable companies have announced plans to take advantage of this new law.

Key Takeaways:

  • SNET has secured a favorable ruling from the U.S. district court in Connecticut, allowing the company to provide television programming in its own service area.
  • The company challenged the constitutionality of the Cable Communications Policy Act of 1984, which contained a prohibition on providing television programming.
  • SNET is building a $4.5 billion information superhighway called I-SNET in Connecticut, which will carry information, communication, and entertainment services to all 1.5 million customers by 2009.
  • The company plans to offer programming packages and features that are not available from anyone else, with a focus on meeting the needs of its customers across the state.
  • SNET is currently gathering data on customer preferences through a video trial in West Hartford, which will be expanded to 150,000 customers in Hartford and Fairfield counties starting this summer.
  • With the courts lifting the programming prohibition, SNET awaits a go-ahead from the FCC to begin providing programming.
  • Cory Mitchell, SNET's president of multi-media services, expressed excitement about the company's new opportunity to serve its customers with a wide array of interesting TV programs and more choice than they have now.

Statistics:

  • The U.S. district court in Connecticut has ruled in favor of SNET, lifting the prohibition on the company's ability to provide television programming in its own service area.
  • SNET is investing $4.5 billion in the construction of its I-SNET information superhighway in Connecticut.
  • The company aims to deliver information, communication, and entertainment services to its 1.5 million customers by 2009.
  • West Hartford is currently participating in a video trial, with the trial set to expand to 150,000 customers in Hartford and Fairfield counties starting this summer.
  • SNET serves 1.5 million customers in Connecticut.

Sources:

  • "SNET Secures Favorable Decision" (Business Wire, May 4, 1995)
  • Connecticut Legislation (1994)
  • SNET press release