Topeka ? A bill touted as a way to increase competition for cable television companies and lower consumers’ costs has started what one key senator said Tuesday was a battle of big corporate gorillas.

The fight concerns the proposed “Video Competition Act,” backed by AT&T Corp., the state’s largest provider of local telephone service. The measure would rewrite laws covering cable franchises, making it easier for AT&T and other firms to offer alternative video services.

Cable companies, including Time Warner Inc. and Cox Communications Inc., believe the bill would give AT&T special treatment.

The Senate Commerce Committee had a hearing but took no action. Chairwoman Karin Brownlee said lawmakers are interested in spurring competition but concerned that the bill would hurt cable companies and cities relying on franchise fees to fund programs.

“Obviously, we haven’t found middle ground,” said Brownlee, R-Olathe. “We are talking about an 800-pound gorilla versus an 800-pound gorilla.”

It’s the second time this year AT&T has asked legislators to lessen the regulation it faces. The Senate Utilities Committee is reviewing a bill deregulating prices for telecommunications services in Kansas City, Topeka and Wichita, and under certain conditions in other areas.

David Kerr, AT&T’s Kansas president, said the company hopes to offer video service, using fiber-optic cable and phone lines, to half its customers nationwide. But he said a big barrier is having to sign franchise agreements with thousands of individual cities, including more than 600 in Kansas.

The bill is patterned after a new Texas law. It would permit new video service providers to obtain a certificate to operate statewide from the secretary of state’s office. Instead of paying franchise fees to cities, a company would pay a 5 percent tax on its gross receipts, with the money going to local governments.

“This is trying to remove the roadblocks that are there,” Kerr said after the hearing.

The law would allow cable companies to go through the same process – after their current agreement with a city expires.

The National Cable and Telecommunications Association argues those companies will operate for five, 10 or even 15 years under stricter rules, requiring them, for example, to set aside channels for public-service programming.

“It’s the epitome of special interest legislation,” said John Federico, lobbyist for the association’s Kansas counterpart. “They’re asking for special rules that apply only to them.”

Cable companies and local officials worry that rival video services firms such as AT&T will offer services in only affluent neighborhoods, and they argue that satellite dish networks already offer plenty of competition.

“I don’t understand the argument that there’s no competition,” said Gary Shorman, president of Eagle Communications, which provides cable services to about 10,000 subscribers in western Kansas, including Hays and Russell. “You can drive through any town and see satellites.”

But David McClure, president of the U.S. Internet Industry Association, said the franchise requirements hamper the spread of new technology. Topeka resident Michael Welch said competition lowered his family’s phone bills.

“Video is different,” he said. “Regulations have limited access, and my Cablevision has steadily risen in price since I originally subscribed to it.”