AT&T Set to Argue Appeal to Oregon Open Access Ruling Monday
quote.bloomberg.com
Portland, Oregon, Oct. 29 (Bloomberg) -- AT&T Corp., soon to
be the No. 1 U.S. cable-TV operator, on Monday will argue its
appeal to a federal ruling that would require it to open cable
lines to rival Internet access providers in Portland, Oregon.
AT&T will ask a panel of three judges on the 9th U.S.
Circuit Court of Appeals to overturn an earlier ruling allowing
the city and county governments to require the company to open
its cable lines. AT&T will argue that Congress has already passed
laws that forbid such local regulation, and that the local
requirements violate the First Amendment.
The appeal comes as AT&T has run into roadblocks in its bid
to offer local phone service, high-speed Internet access and
other services across cable lines it has acquired with two major
purchases. Some local governments, including Portland and
surrounding Multnomah County, have agreed to transfer cable
franchises to AT&T on the condition that it open its wires to
competing access providers.
AT&T's appeal comes after it lost a June suit to overturn
Portland's conditions. Many other cities are closely monitoring
the appeal as they deliberate on transferring cable franchises.
``A lot of people are watching what the 9th Circuit does and
what happens with the appeal to see which direction they should
take,' said Jon Englund, director of government affairs with
high-speed Internet access provider Excite At Home Corp., which
is majority owned by AT&T.
A ruling in favor of the city would be bad news for AT&T and
Excite At Home and good news for rivals America Online Inc.,
MindSpring Enterprises Inc., and others. AOL and the others
currently offer access primarily through phone lines, which are
much slower than cable.
Portland attached the conditions to the cable franchise to
give consumers the same kind of choice for Internet access
through cable that they have through phone lines, said David
Olson, Portland's cable communications director.
AT&T and Excite At Home argue that their services benefit
consumers by promoting competition from other types of high-speed
Internet access, such as digital subscriber line, which is
offered by local phone companies.
The Federal Communications Commission has been cautious
about regulating anything related to the nascent Internet
industry.
Lawyers from the company and the city and county will each
have 20 minutes to argue their points, though they can be
interrupted repeatedly by questions from the judges, Olson said.
Many observers will monitor the tone of questions for an insight
into which way the judges are leaning.
A ruling on the appeal will come in January or February.
Both sides agree that no matter who wins the appeal, the case
will be appealed again to the Supreme Court, which could delay a
resolution until 2001.
Some analysts expect a settlement before that. AT&T and
Excite At Home have already held discussions with AOL and others
about opening up the cable lines.
``The answer is they've got to cut deals,' said George Reed-
Dellinger, a policy analyst with Washington Analysis.
--Greg Chang in the San Francisco newsroom (415) 912-2992/pkc |
