AT&T sues Florida County over Internet access rule
July 26, 1999 07:21 PM
WASHINGTON, July 26 (Reuters) - AT&T Corp. on Monday filed a federal lawsuit against Broward County, Florida, in a bid to overturn the county's decision requiring the company to open its high-speed Internet service to competitors.
AT&T T , which will rank as the largest cable operator in the country if regulators approve its $58 billion purchase of MediaOne Group Inc. UMG , said the county lacked authority to impose the open-access condition on its cable network.
A federal district court in Portland, Ore., ruled against AT&T in a similar case in June, but that ruling is not binding in Florida and has been appealed.
"New cable services like Internet access and local telephone service give consumers more choice, not less," AT&T Vice President Mark Rosenblum said in a statement.
The controversy has arisen because, unlike Internet surfers connecting over ordinary phone lines, customers of AT&T's cable Internet service must pay one price for both Internet access and services like e-mail and Web page hosting.
Customers pay for services from a cable-owned Internet service provider like AT&T's ExciteAtHome Corp. ATHM even if they would prefer another firm like America Online AOL
Broward County two weeks ago passed a rule requiring cable companies to offer consumers a choice of Internet service providers.
AT&T and other cable companies fear more municipalities could follow the lead of Broward by enacting mandatory open-access laws.
The Federal Communications Commission has decided not to require open access on cable Internet services, but the agency plans to monitor the market closely.
((Aaron Pressman, Washington newsroom, 202-898-8312)) REUTERS
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