S.F. Panel Rejects AT&T; Cable Monopoly

San Francisco’s Public Utilities Commission rejected a proposal to grant a cable TV monopoly to No. 2 U.S. cable company AT&T; Corp. over concerns about lack of competition for high-speed Internet access.

The monopoly could still be granted when the city Board of Supervisors considers the proposal July 6. AT&T; has been buying cable companies and wants to sell local phone service, high-speed Internet access and other services across the cable system.

The San Francisco panel’s objection to giving AT&T; the cable monopoly comes as other cities such as Portland, Ore., are trying to block the company unless it agrees to open access on the cable lines to competing Internet services. AT&T; wants to let rivals such as America Online Inc. offer their services for a premium on top of AT&T;’s own service, while the rivals argue that would be unfair competition.

A federal judge earlier this month ruled that AT&T; must allow competitors to use its cable TV networks in Portland and Multnomah County, Ore., after the company sued the city for granting the cable monopoly on the condition AT&T; open its network. AT&T; said it would appeal.

AT&T; in March purchased cable company Tele-Communications Inc. for $59.4 billion. The company also agreed to buy MediaOne Group Inc. for $62.5 billion.

On the New York Stock Exchange, shares of AT&T; fell $1.13 to close at $56.13 and America Online rose $2.25 to $111.75.