The cable companies have been fighting attempts to open up their
networks to rivals, as traditional telcos have been forced to
do.
The case was brought by tiny ISP Brand X Internet Services and
others after the FCC ruled in 2002 that a service offering
broadband access over cable networks is an “information service”
and not a telephone service, which is subject to regulation under
the Communications Act.
Brand X had argued that the FCC had overstretched its authority
when it interpreted the Act in that way. But yesterday, reversing
an appeal court ruling, the Supreme Court upheld the FCC
interpretation by a majority of six to three.
The FCC welcomed the ruling.
“I am pleased that the US Supreme Court has affirmed the FCC’s
ruling,” said Chairman Kevin Martin. “This decision provides
much-needed regulatory clarity and a framework for broadband that
can be applied to all providers. We can now move forward quickly to
finalise regulations that will spur the deployment of broadband
services for all Americans.”
Another happy observer was Kyle McSlarrow, President and CEO of
the National Cable and Telecommunications Association.
“Today's Supreme Court's decision is a victory for consumers and
maintains the momentum to advance broadband in the US,” he
said.Classifying cable modem service as an interstate
information service, as the FCC did, keeps this innovative service
on the right deregulatory path”.
But consumer groups were not so pleased. The American Civil
Liberties Union warned that the ruling could allow monopolistic broadband providers to leverage their ownership
of the wires that people use to get on-line to exert control over
subscribers' web surfing, e-mail, and internet telephone
services.
"The Supreme Court missed an opportunity to correct the FCC's
decision on this issue," said Senior Staff Attorney Chris Hansen.
"The Court's ruling was a fairly straightforward judgment that the
judiciary's tradition of deference to the executive's power to
interpret the law exceeded any misjudgement on the part of the FCC.
That judgment was mistaken in our view and the FCC seems to be
moving in the wrong direction on this issue."
Dave Baker, vice president, law and public policy with ISP
EarthLink, called the ruling a “blow to consumers and
competition.”
“For too long, cable companies and the FCC have denied consumers
a choice of broadband providers over cable,” he said. “Besides
keeping prices high, this lack of choice limits the future
deployment of innovative voice, video and data services beyond just
those offered by the local cable company.”
