Monday, June 27, 2005

Cable Companies Don't Need to Share Lines

My Way News reported The Supreme Court ruled on Monday that cable companies may keep rival Internet providers from using their lines, a decision that will limit competition and consumers' choices.

Gee, I can't start my own SmallCableCo and make BigCableCo let me use their cable. But based on the Kelo decision, if I can bribe the city council into helping me, maybe I can get them to take BigCableCo's cable away from them and give it to me.
The 6-3 decision is a victory for the Bush administration, which sought exclusive control to promote broadband investment from deep-pocketed cable companies. Judges should defer to the expertise of the Federal Communications Commission, which concluded that limited access is best for the industry, the high court said in an opinion by Justice Clarence Thomas. More than 19 million homes have cable broadband service. At issue is whether cable Internet access is a "telecommunications service" under federal law that makes it subject to strict FCC rules requiring companies to provide access to independent providers. The FCC said no, voting in March 2002 to exempt cable companies from the strict rules to stir more investment. The agency reasoned that high-speed Internet over cable was just an "information service," making it different from phone companies.

To see the decisions, read:Michelle Malkin blogged The Supremes uphold the property rights of cable companies. An ISP named Brand X had argued that it should be allowed to use infrastructure that the cable companies had built. In a bit of editorializing, AP reports that the decision "will limit competition and consumers' choices." In fact, the decision will encourage cable companies to invest in new networks, bringing cable internet services to areas that don't presently have them. As AP notes, there are plenty of alternatives for high-speed access, including DSL, wireless, satellite, and dial-up.

Jeff Quinton blogged The Supreme Court ruled on Monday that cable companies may keep rival Internet providers from using their lines, a decision that will limit competition and consumers' choices. The 6-3 decision is a victory for the Bush administration, which sought exclusive control to promote broadband investment from deep-pocketed cable companies. Judges should defer to the expertise of the Federal Communications Commission, which concluded that limited access is best for the industry, the high court said in an opinion by Justice Clarence Thomas.

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