Scott Marshall reports that San Ramon, California and AT&T were expected to reach an agreement yesterday over AT&T's proposed IPTV service offering.

Unlike other cities where AT&T has failed to reach agreement, San Ramon says it does not require a franchise agreement from AT&T for their proposed IPTV service. The cities of Walnut Creek and Livermore believe differently and contested that AT&T would be required to get a franchise agreement just like cable companies. AT&T says they do not need cable franchise agreements to offer IPTV because they are a regulated telephone company.

Update: San Ramon and AT&T reached an agreement yesterday allowing AT&T to offer their IPTV service. The agreement makes San Ramon the first city in Northern California to sign such a deal.