How about a new twist in the Cable vs. DSL debate?
Kevin Martin wants a level playing field for broadband internet access. For too long now, Cable providers have enjoyed extending their networks to new markets without having to share those networks with competitors while phone companies that provide DSL are forced to share their networks with any ISP that asks. We have an old saying in LEC telephony: “Welcome to the World of Regulatory.”
Well, that might’ve flown under former chairman Powell, but Martin says times have changed and regulation must change to embrace them, and as of August 5th, that change is official:
The Order that we adopt today is a momentous one. It ends the regulatory inequities that currently exist between cable and telephone companies in their provision of broadband Internet services. As I have said on numerous occasions, leveling the playing field between these providers has been one of my highest priorities. With this Order, wireline broadband Internet access providers, like cable modem service providers, will be considered information service providers and will no longer be compelled by regulation to unbundle and separately tariff the underlying transmission component of their Internet access service.
Most importantly, however, the actions we take in this Order are an explicit recognition that the telecommunications marketplace that exists today is vastly different from the one governed by regulators over 30 years ago. The Computer Inquiry requirements that were adopted several decades ago were based on the assumption that, without the imposition of strict regulation, telephone companies would be able to exert considerable market power over unaffiliated entities in the provision of information services. To the extent that this assumption was true at the time, it is no longer true in today’s broadband market.
Summarized, Martin is recognizing that there was a time when the regulation was in the best interest of competition, but now the same regulation is stifling the ILEC’s ability to compete, so the FCC is deregulating broadband internet access.
I imagine you must be wondering, “How does this effect me and why would I care if the FCC gives some big money phone company a break on dsl?”
It will take some time, of course, but I believe this will free up the bandwidth for new services and higher data speeds that will be passed on to the customer at lower prices. Very soon, everyone will be able to see the TRUE potential of DSL and I predict that the improvement will benefit us all, Cable and DSL customers, alike, in bottom-line value AND affordability.
Interestingly, however, many rural LECs (not RBOCs) will be hesitant to opt in. At the outset, only RBOCs are REQUIRED to comply. Reason being– This is actually a loss of revenue. The government compensates ILECs for sharing bandwidth according to the old rules. While I can’t mention how big this revenue is (it varies according to size and number of ISPs involved), it is enough that most rural LECs would prefer to keep sharing the bandwidth as they have all along. Oh well… Sorry to suck all the air out of the conspiracy theorists and their ridiculous notions that “big brother bell” is out to rule the world with the government’s support… HELLO– Can you say “REGULATORY?”
