LAS VEGAS--Net neutrality proponents are modern-day Chicken Littles, AT&T Chairman and CEO Edward Whitacre told a packed house at TelecomNext today.

"Companies are trying to scare people into thinking the Internet is at risk or that the Internet as we know it will disappear," he said. "It's like Mark Twain said, a lie can travel halfway around the world before the truth has its shoes on."

Blocking access to anyone is simply bad business, Whitacre added.

"AT&T is not going to block anyone's access to the Internet and we are not going to degrade anyone's quality of service," he said. "And that is not going to change no matter how much anyone talks about Net neutrality."

Those who claim the government needs to step in to protect the Internet are expecting companies such as AT&T to continue to add lanes to a congested highway without compensation, Whitacre said. "We've spent $11.5 billion in capital spending over the last year and that's $11.5 billion of our shareholder's money, and they have a right to a return on that investment," he said. "It is in the interests of both the network provider and the content provider to resolve this--our interests are intertwined. I believe in finding a commercial resolution to the issue. The market is fully capable of sorting this out."

Whitacre also touched on national video franchise issues, saying AT&T wanted national or statewide approach. "If we got one local franchise a day, it would take us six years to get them all," he said.

Consumers will benefit from competition in video services because cable rates will come down, Whitacre said. He cited figures that showed telephone rates have declined 22% while cable rates have risen 32% in the same period.

Letting telcos move quickly into video services "will almost certainly result in lower prices by cable companies," Whitacre said.