To: Steve Hausser who wrote (5099 ) 6/19/1999 8:28:00 AM From: Craig Jacobs Respond to of 13157
Friday June 18, 6:28 pm Eastern Time Company Press Release SOURCE: AT&T Los Angeles Recommends 'Hands-Off' Approach To Government Regulation Of Internet Access LOS ANGELES, June 18 /PRNewswire/ -- The City of Los Angeles today issued an extensive report reaffirming the consumer benefits of rapid deployment of Internet services by cable operators. The report rejected a proposal that would regulate Internet access by requiring cable operators to share their networks with unaffiliated Internet Service Providers (ISPs) in offering high- speed Internet access to consumers. The report was authored by the City's Information Technology Agency (ITA). The report is a culmination of a six-month extensive fact-finding process on whether the city would require cable operators to provide space on their networks to unaffiliated ISPs. The study was based on in-depth interviews by the ITA staff with policy makers at the Federal Communications Commission, the Department of Justice and the National Telecommunications and Information Administration. The process also included extensive written filings and public hearings. In addition to the cable industry, parties participating in the process included AOL, GTE and SBC/Pacific Bell. The City's report concludes, ''Given the increase in the number of competing parties and competing technologies, each of which provides a viable high-speed on-ramp to the Internet, it does not appear at this time that regulatory intervention on the magnitude of open access is either prudent or advisable.'' Earlier this week Federal Communications Commission Chairman William Kennard cautioned against local regulation of cable Internet access services. The FCC itself issued a report in February of this year concluding that regulation of these services is unwarranted and may be counterproductive at this time because a competitive environment is developing. The City's report concurred saying, ''The Agency agrees with the findings of the FCC regarding the likelihood of competition in the marketplace for residential broadband Internet access services.'' ''The Los Angeles Information Technology Agency has clearly determined that government regulation of Internet access is unwarranted, and could reduce competitive choices for consumers,'' said Jim Cicconi, AT&T general counsel. ''No other city in the United States has so thoroughly reviewed this issue, and we believe Los Angeles, like the FCC, has reached the right conclusion.'' The study will be reviewed Monday by the City's Board of Information Technology Commissioners before being forwarded to the Los Angeles City Council. The City of Los Angeles is served by seven cable operators, including AT&T, Time Warner Cable, Century Communications, MediaOne, Cox Communications, Falcon Communications, and Buenavision Telecommunications that operate in 14 franchise areas. The Los Angeles universe of cable homes passed in Los Angeles is 1.35 million households, and there are 602,200 customers. SOURCE: AT&T