Summary
On March 29th the Supreme Court will hear oral arguments in the consolidated cases of FCC v. Brand X Internet Services and National Cable and Telecommunications Association v. Brand X Internet Services. The FCC and the National Cable and Telecommunications Association are challenging a 2003 U.S. Appellate Court decision that made cable modem services susceptible to common carrier regulations. Ironically, the National Cable and Telecommunications Association insists that its members provide neither cable services nor telecommunications services, but rather information services which are exempt from common carrier regulation. If the decision stands, cable providers will have to allow traditional Internet service providers, such as Brand X and Earthlink, to utilize cable company lines to provide high-speed Internet access to consumers. The FCC and the cable companies assert that such regulation will stifle investment in broadband cable lines. In addition, DSL providers such as Verizon, BellSouth and SBC Communications urge the Court to overturn the decision in hopes that an unregulated cable market will carry over to DSL providers who up until now have been subject to common carrier regulations.
However, consumer organizations such as Consumers Union and the Consumer Federation of America as well as public interest groups like Media Access Project and The Center for Digital Democracy argue that increased competition in high-speed Internet services will greatly benefit consumers, the majority of whom now reside in monopolistic markets. If the Court upholds the decision and opens cable lines to increased competition consumers should benefit from lower prices and more plentiful choices in the high-speed Internet market.
A copy of the Appellate Court decision can be found here.
