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The New Rules Project - Designing Rules As If Community Matters

Open Access

The Internet as we know it developed within a framework of "open access." That is, people could choose their own internet service provider (ISP), view any web site, and transmit any information they desired.

Open access did not happen by chance, but rather by regulation. Many years ago, the Federal Communications Commission (FCC) required that, for a reasonable fee, local phone companies allow their wires to be used by competing ISPs.

In the late 1990s, several cities mandated that their cable providers open their lines to competing ISPs. But federal courts ruled that cities do not have the authority to impose open access rules on cable companies. (See Portland, Oregon, federal court ruling.)

Then, in March 2002, the FCC issued a ruling declaring Internet service through a cable modem is an "information service," not a "telecommunications service," and therefore is not subject to open access requirements. The ruling allows cable companies to lock out rival ISPs and maintain local monopolies over broadband cable internet service. On June 27, 2005, the U.S. Supreme Court upheld the FCC's ruling in FCC v. Brand X.

On August 5, 2005, the FCC eliminated open access rules for DSL lines as well. A 2004 FCC decision had already exempted telephone from common carrier requirements for their next-generation networks (fiber-to-the-home/-curb/-neighborhood, as well as advanced ADSL technologies).

Lack of competition will likely mean higher prices. An even greater concern is that, without rules requiring non-discriminatory open access, broadband providers may inhibit or block access to certain web sites, or prohibit certain web applications. (See "How Broadband Systems will Narrow the Net" and "What the Market Will Bear" from the Center for Digital Democracy.)

RULES:

Utopia - Utah Telecommunications Open Infrastructure Agency (Utopia) is an inter-governmental agency, representing about one-third of Utah's population. Utopia plans to build a fiber-to-the-home network that will deliver speeds of at least 100 Mbps to every home and business in each of the 18 member cities.

More:

  • FCC Ruling on Broadband as an Information Service
  • Portland, OR Federal Court Ruling
    In June 1998, long-distance telephone company AT&T announced its intent to buy TCI, one of the country's largest cable companies. The City of Portland and Multnomah County, Oregon agreed to transfer of control of local TCI franchises to AT&T only if AT&T allowed unaffiliated Internet service providers (ISPs) to lease capacity on the cable network.
  • FCC Ruling on Sharing Telephone Lines
    A link to the FCC ruling that requires equal access to telephone lines as a way to encourage competition.


What's New - by date

Who Will Own Minnesota's Information Highways?
- June 2005
Competitive broadband service and pricing is within reach of most Minnesotans if anti-competitive polices and practices are removed and municipal governments build broadband infrastructure. -
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