FCC eases high-speed Internet rules -
Thursday, October 14, 2004 7:48:21 PM
afxpress.com
WASHINGTON (AFX) - Federal regulators on Thursday adopted rules meant to accelerate the spread of new technologies that deliver hyperfast Internet connections, including one that enables utilities to offer it over power lines. The decision by the Federal Communications Commission could hasten efforts to renovate power lines to carry video, phone and super-fast Web connections. Regulators hope utilities will eventually rival the big phone and cable companies, driving down prices for consumers
At the same time, the Bell local phone companies were granted relief in the form of a new FCC rule that makes it easier to replace copper wires with fiber. By upgrading to fiber networks, the Bells stand a better chance of fending off competition from cable companies and even future power line providers
Michael Powell, Republican chairman of the FCC, said the rules are aimed at speeding up the construction of high-speed networks
His point was illustrated shortly after the FCC vote, when SBC Communications said it would "dramatically" speed up its plan to construct a fiber-based network that reaches 18 million households
Electric issue The power line decision was meant to address concerns about interference. The FCC set specific rules for power companies on how to avoid interference, especially with amateur radio operators
The agency avoided the imposition of stricter rules regarding emergency 911, disability access and contributions to universal service, a fund that subsidizes phone service in areas where it is expensive to deliver
"By crafting a minimal regulatory framework," Powell said, the FCC is advancing a pro-competition agenda that will make high-speed Internet access a reality for almost every American. He noted that power lines go into nearly every U.S. home
Yet critics such as FCC Commissioner Michael Copps, a Democrat, argued that the agency's failure to address the stickier issues might actually hinder growth of power line technology. He said the threat of future regulation may make investors leery of getting involved
"If we want investment in broadband over power line, we need certainty and predictability," he said
Fiber rules Copps also objected to a new rule that exempts fiber "loops" in all residential neighborhoods from an FCC requirement that guarantees open access to competing Internet service providers
The local loop is the mass of wires that extend from the nearest central switching office of a local phone company to the homes and businesses it serves
The new exemption only applies to high-speed Internet service delivered by fiber connections to homes. It expands on a prior rule that exempted new residential developments hooked up with fiber
Yet network operators still have to let rivals use copper and fiber wires to sell regular phone service to consumers. That rule stems from a major 1996 law whose aim was to foster competition in the local phone market
Still, the vote reflects a victory for the Bells. They have argued that there's little incentive to spend big bucks to replace copper with fiber if rivals can use those fiber connections as well. Fiber offers much greater Internet speeds and the promise of new services such as pay TV over phone lines
The three Republicans on the five-member FCC board proved sympathetic to that argument. They say fiber loops ought to be exempted so investment won't get stifled
Still, the FCC board did require the local carriers to ensure that the fiber loops extend to within 500 feet of residential homes
Industry reaction Copps and fellow Democrat Jonathan Adelstein said the rule is a setback to competition
"The local loop represents the prized last mile of communications," Copps said. "Putting it beyond the reach of competitors can only entrench incumbents who already hold sway." Consumer groups also blasted the decision
"The FCC today took our country one giant step closer toward solidifying a two-company domination -- the local cable and telephone providers -- over the consumer Internet market," said Gene Kimmelman, senior policy director of Consumers Union
The Bells, on the other hand, reacted with jubilation
Shortly after the FCC vote, SBC said it will "dramatically accelerate" plans to build a fiber-based network "in two to three years rather than five years as previously announced." The fiber would replace copper in many parts of the network and offer the promise of "super high-speed data, video and voice services," SBC said |
