NCTA CEO talks tough to FCC
Cable trade organization says open access will go too far
By David B. Wilkerson & Barbara C. Costanza, CBS.MarketWatch.com
Last Update: 6:28 PM ET Nov 30, 2000 NewsWatch
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LOS ANGELES (CBS.MW) - Anyone who thinks last week's Internet access agreement between Time Warner and EarthLink is going to quiet the debate on open access should think again.
Updated:
12/1/2000 9:20:54 AM ET
Robert Sachs certainly doesn't think the agreement resolved anything. In a blistering speech to delegates at the Western Cable Show here on Thursday, the president and chief executive of the National Cable Television Association said federally mandated open access for the combined AOL-Time Warner will ultimately hurt the entire cable industry.
The Federal Trade Commission is currently reviewing AOL's (AOL: news, chart) proposed $130 billion acquisition of Time Warner (TWX: news, chart). The primary stumbling block to approval of the deal is believed to be the commission's concern that AOL and Time Warner will be able to dominate the Internet service business as they combine the nation's No. 1 ISP and No. 2 cable operator.
But last week, EarthLink (ELNK: news, chart), a leading ISP, signed a pact that will make its service available on Time Warner's cable systems. Many observers said the deal should help allay the FTC's concerns.
Sachs scoffed. "Agreements dictated by FTC lawyers should not be confused with business deals based solely upon economic considerations," he said.
If the FTC forces AOL and Time Warner to open up their cable pipes to all comers, Sachs fears that the need for such a requirement will be misinterpreted.
Cable's competitors in the high-speed ISP business "will seize upon the FTC consent decree and urge the Federal Communications Commission to impose broadband access conditions on the entire cable industry - despite the fact that no other (cable operator) provides more than 2 percent of Internet access in the U.S.," Sachs said.
The FCC is currently asking for public comment as it tries to decide what access requirements it will impose in the area of broadband communications. On Friday, Sachs said, the NCTA will file a brief saying it will "vigorously oppose" any federal mandates on prices, terms or conditions on cable operators' ISP access policies. |
