Cable Lines Opened to ISPs
WASHINGTON — Inviting more competition in high-speed Internet access, a federal appeals court this week refused to reconsider an order requiring cable operators to share their networks with rivals.
The 9th Circuit Court of Appeals in San Francisco dismissed arguments from the Federal Communications Commission and the cable industry that cable-based Internet access should be exempt from the rules that require telephone companies to lease their lines to competitors.
Instead, the court late Wednesday upheld, without comment, its October 2003 ruling that cable and phone networks should be treated similarly. Barring a stay, the order takes effect next week.
Experts said the decision ultimately could trigger the same kind of rivalry for customers of cable high-speed Internet access that exists with slower dial-up service.
Competition among Time Warner Inc.'s America Online and more than 2,000 other providers has driven dial-up rates below $10 a month -- less than a quarter of the average price of high-speed service, or broadband.
"This creates a true opportunity for consumers to pick and choose from a broad array of cable Internet services," said Gene Kimmelman, Washington office director for Consumer's Union.
Internet service providers such as EarthLink Inc. are eager to use cable as well as phone lines, but Robert Sachs, president of the National Cable & Telecommunications Assn., said the court's order "would deter new investment and impose unnecessary costs on broadband services."
Cable operators have spent $85 billion modernizing their networks over the last two decades, and more than half of the 25 million customers with high-speed Internet access subscribe through their cable companies.
The decision also marks another setback for FCC Chairman Michael K. Powell, who wants to spur wider broadband deployment with less government oversight of the cable industry.
Other attempts by Powell to loosen regulations on phone service and media ownership have been thwarted by the courts, Congress and his fellow commissioners.
"I am disappointed," Powell said Thursday. "The commission has worked tirelessly to advance economic growth and investment in high-speed Internet networks. By standing on a prior decision, this court
The FCC for decades has granted the cable industry broad leeway to build out its networks without the heavy regulation imposed on telephone carriers. In March 2002, the agency exempted cable companies from laws that force phone companies to open their lines to rivals.
