FCC Staff Favor Cable Network Protection

A Federal Communications Commission staff
report released Monday recommends that national rules to protect cable
franchises might be needed if more municipalities force cable companies to
open their networks.

The working paper from the FCC’s Office of
Plans and Policy
was written by Jason Oxman, counsel for advanced
communications policy.

Oxman said the working paper is not intended to represent individual views
of the FCC or any commissioner.

“The paper represents the views of individual staff members and are not
official statements made by the commission or its commissioners,” Oxman
said. “The purpose of this piece is as a defense of the FCC’s long
standing policy of not regulating the Internet since 1970.”

The commission still must be wary of anti-competitive behavior in the
market, including last-mile delivery bottlenecks within cable systems. But
the paper urges that any regulatory responses should be kept to a bare
minimum and advises against the FCC simply impose regulations developed for
old technologies on new Internet-based technologies.

In contrast to the working paper, recent federal court and county
commissions have mandated that AT&T open its
cable network to other Internet service providers.

In Portland, Ore., a federal district court ruled that the city government
has the authority to force its cable TV company to open access to all
Internet services providers. AT&T-owned Tele-Communications Inc., is appealing the
decision.

Michael Armstrong, AT&T chairman and chief executive officer, told a Senate
panel Friday that the telecommunications giant will also challenge
Florida’s Broward County decision to open its cable network to Internet
competitors like America Online, Inc.

Over the next few months AT&T will likely face similar court battles as
they seek approval from local franchise authorities to complete the
assimilation of MediaOne.

John Raposa, GTE associate general
council, confirmed that GTE has offered to pay Broward Counties legal bills
incurred by the AT&T suit.

Raposa said, “they have a small county attorney office. We wanted to offer
them the financial support they need to effectively respond to the vast
array of high priced lawyers AT&T will throw at this.”

GTE does not provide local telephone services to Broward County. However,
GTE does offer retail Internet access and backbone services to the area.

Raposa added that federal regulators have turned a blind eye to consumers.

“What we need is an effective national policy on open access to cable
networks,” Raposa said. “When the FCC says they have a hands-off policy,
that’s code that translates to a do nothing policy that can only hurt
consumers.”

Greg Simon, co-director of the OpenNet Coalition, said that
the cable access issue is best left to local municipalities.

Simon said, “we think that the cities will recognize the importance of this
issue because it’s at the local point where regulators are in touch with
their constituents.”

Apparently, proponents of milking cable facilities can complain about
AT&T/TCI monopolies until the cows come home. The FCC believes that history
finds in favor of free market forces when in comes to inspiring innovation,
maximizing public welfare, and creating competition within the herd.

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