The reason they are scared is it may have much broader ramifications.
2241 DJ 2-Jun-99 at 16:41:00 15:23
DJ Internet Provider Asks FCC To Grant It Access To Cable
Symbol: ATHM T I/IVN
Industry: CSV HOU IAS LDS MED PUB TEL TLS
Government: FCC
Subject: DJN DJWI NET UTI WEI
Market Sector: CYC NCY UTI
Geographic Region: NME NY US USE
Product/Service: DCP DIT DME DTE
By Mark Wigfield
WASHINGTON (Dow Jones)--In a potentially precedent-setting case, an Internet
service provider is seeking help from federal regulators in getting access to
a cable network.
Arguing that it is a provider of video services, Internet Ventures Inc.
(X.IVN) and its subsidiary, Internet On-Ramp, wants to lease access to cable
in Spokane, Wash. The company, TCI of Washington, a unit of AT&T Corp. (T),
has refused the request.
Under a 1984 cable law, cable systems must lease 15% of their capacity to
other providers of video services. But according to Internet Ventures'
attorney, William Freedman, this is the first time an Internet service
provider has filed a petition asking the Federal Communications Commission to
intervene in getting access to a cable system.
In a brief statement, the National Cable Television Association said the law
"is very clear: Cable's leased access channel obligations apply only to video
programming. The current leased access rules were in no way meant to apply to
Internet-related services."
But Internet Ventures says it offers broadcast stations and "streaming
video" over its high-speed system. "Though the means of delivery is different,
the programming is indistinguishable," Freedman said.
America Online Inc. (AOL) and other major Internet service providers have
argued that cable systems should be open to all ISPs on an equal footing.
Currently, TCI customers must buy the At Home Internet service, partially
owned by AT&T, and then pay extra for AOL, something few customers are willing
to do, AOL says.
ISPs see cable, capable of providing high-speed Internet service, as an
important alternative "pipe" into the home. However, the FCC declined AOL's
request that equal access be a condition to TCI's merger with AT&T, saying
such a requirement would be premature.
Freedman said the FCC is not under any statutory deadlines to make a
decision on Internet Ventures' petition. However, he expects the agency will
ask for public comment on the request.
-Mark Wigfield; 202-828-3397; mark.wigfield@dowjones.com
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