WALL ST JOUR,ÿ 2/21:FCC Rejects Attempt to Force Cable Firms to Lease Net Accessÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ FCC Rejects Attempt to Force
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Cable Firms to Lease Net Access
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ By MARK WIGFIELDÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Dow Jones Newswires
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ WASHINGTON -- The Federal Communications
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Commission has quashed an attempt by an
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Internet-service provider to force cable companies to
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ lease broadband capacity to it under a novel
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ interpretation of a law intended to promote diverse TV
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ programming.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ The decision is part of a broader debate over "open
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ access " to cable networks that may help determine
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ which companies get access to fat pipelines that could
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ provide consumers with superfast access to voice,
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ video, data and other services.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ In a 5-0 vote, the FCC decided that the Internet-access
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ services offered by Internet Ventures Inc. of Washington
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ state and its subsidiary, Internet On-Ramp Inc., aren't
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ video-programming services such as those provided by a
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ television station. Only providers of such video services
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ are entitled to lease access from a cable system.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ The law is intended to give third-party programmers
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ access to cable outlets in order to ensure diversity of
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ programming. But in a petition to the FCC, Internet
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Ventures argued that Internet access should be
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ considered a video service eligible for leased access.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Internet Ventures' petition was seen as a novel twist on
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ the "open access" debate, in which Internet-service
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ providers have argued that they should have the same
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ access to broadband cable systems as they have to the
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ telephone network. While the FCC has encouraged
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ companies such as AT&T Corp. to provide open access,
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ it has said any regulation would be premature.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Currently, most Americans access the Internet at home
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ through clunky analog telephone lines designed to carry
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ voice rather than data. The big bottleneck has been the
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ prohibitive cost of wiring the "last mile" of broadband
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ access to homes. While cable companies such as AT&T
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ and local-phone companies like Bell Atlantic Corp. have
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ begun to offer high-speed access to the home, only a
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ fraction of U.S. Internet users subscribe to these faster
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ services.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ A spokesman for AT&T praised the FCC decision.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ AT&T called Internet Venture's petition "just another
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ baseless argument for government regulation of Internet
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ access," saying "the marketplace is working."ÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ But telecommunications analysts Scott Cleland of the
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Schwab Washington Research Group said that Internet
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Ventures was going to provide more than simple Internet
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ access. Unlike a conventional Internet firm, it planned to
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ offer 100 television broadcast stations via streaming
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ video.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ "This was a decision as to whether an [Internet service
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ provider] could compete against cable and offer an
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ alternative video-programming package," Mr. Cleland
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ said. "The FCC shut that down."ÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ But the FCC said the law doesn't require cable operators
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ to make capacity available for the range of services that
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Internet Ventures planned to offer.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ The FCC determined that it need address only the most
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ basic threshold issue, the agency said in a statement. And
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ that issue was whether Internet access is comparable to
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ programming provided by a television broadcast station.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ The FCC concluded that it is not, the statement said.ÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Don Janke, president of Internet Ventures, expressed
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ disappointment over the decision, saying it will result in
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ higher prices, fewer choices for consumers and
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ restricted growth for the Internet.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Internet Ventures offers dial-up and high-speed Internet
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ access services to markets in the U.S. with populations
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ of less than 500,000. It currently operates 14 local
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Internet service providers in California, Colorado,
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Idaho, Oregon and Washington. |
