Saturday, June 18, 2005

FCC, Brand X near Supreme decision

Marguerite Reardon writes in C|Net News:

The future of competition in the broadband market hangs in the balance as the U.S. Supreme court prepares to hand down its decision in a closely watched case that pits the Federal Communications Commission against a small Internet service provider.

The case, FCC v. Brand X, revolves around semantics and a highly technical legal definition of cable Internet.

The FCC has defined cable broadband as an "information service"--a definition that, under FCC guidelines, frees cable companies of regulations that would require operators to share their networks with competitors, including Internet service providers such as California-based Brand X. Brand X argues that cable networks should be regulated like phone lines, which, because they handle telecommunications service, must allow competing services to ride over their network.

The outcome of the Brand X case could set the ground rules for competition in the broadband market for years to come. Though the details of the case are seemingly arcane, the issue could influence how quickly high-speed Internet services come online across the country, what features they will have and how much they will cost--particularly in regions where cable is the only broadband choice for consumers.


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