CCIA: FCC Sets Fairer Standards for High-Speed Internet Competitors

File Under: 2005, Telecommunications

Aug 5, 2005

WASHINGTON — The Federal Communications Commission’s decision to abolish regulations requiring phone companies to share their high-speed Internet connections with competitors is a fair and logical interpretation of recent court rulings, but may require monitoring to insure adequate competition, the Computer & Communications Industry Association said today.

In a 4-0 ruling this morning, the Commission found that telephone companies’ high-speed digital subscriber line offerings are properly classified as “information services with a telecommunications component,” rather than “telecommunications systems” under FCC regulations. As such, telephone companies will no longer be required to give broadband competitors access to their lines. The FCC made the ruling in light of increased competition from non-phone competitors such as cable, satellite, wireless and powerline broadband providers, as well as a Supreme Court decision that gave similar protection to Cable companies.

“Today’s ruling should spur increased broadband penetration throughout the United States,” CCIA President and CEO Ed Black said. “We are hopeful the FCC has set the stage for robust competition. In any case, we will watch how this ruling evolves.”

In addition to its access ruling, the FCC this morning released a policy statement underlining its commitment to protecting consumers’ interests on the Internet. The statement reaffirms that consumers:

• Have the right to access information of their choice
  
• May run services and applications that they wish
• May connect to legal devices that do not harm the network
• Have a choice of competitors in network providers, applications and service providers and content providers

“This policy statement supports principles of network neutrality crucial to a vibrant Internet, and should be the foundation upon which broadband policy is made,” Black said. “CCIA will monitor the evolution of the market and the outcome of the decisions made today. We hope that all will go as planned. If it does not, the FCC will need to reexamine its ruling.”

The FCC also ruled this morning that Internet services including voice over Internet protocol will be subject to the terms of the Computer Assistance to Law Enforcement Act, which assures easy wiretap access for law enforcement.

“We have yet to see the full text of the order, but CCIA is deeply concerned over what details have been released concerning the CALEA decision,” Black said. “Initial indications suggest that the FCC has overstepped in granting too much authority to law enforcement.”