Courts Overturn FCC - Return of the Monopoly?
An anonymous reader writes "The DC Circuit Court of Appeals today threw out FCC restrictions which previously forced large regional phone companies to allow companies such as AT&T and MCI the ability to offer local phone service. The court also upheld FCC rules that no longer require large phone companies to share their advanced broadband networks of the future with competitors. The USTA response:
'This is a decisive victory for consumers, for innovation and for free markets.' The AT&T response: 'At a time when consumers and small business owners are just beginning to realize the benefits of competition, the D.C. Circuit today held up a stop sign and halted eight years of progress.' Enough about the Baby Bells already -- how is this going to effect my VoIP phone from VoicePulse (similar to Vonage)? Did I switch to VoIP so I can pay $15/month for my phone bill, but will have to pay $80/month for FTTH or some other form of broadband?"
Actually, no.
AT&T and MCI are national companies. The large companies are large local (ie state-wide) companies which were forced by the federal government to allow other companies to use their lines to "enhance" competition. The other companies which were allowed in had very little presence in the local market (hence were "small" companies), even while they were giants in the national long distance markets.
"'This is a decisive victory for consumers, for innovation and for free markets.' "
How? How? Damn it. How?
Anyone want to take a shot at it, because I don't see it?
The thing that gets to me is that the RBOCs agreed to open up their networks to local competition and, in return, would be able to go into the long distance business.
Now that this comprimise has been made, they want to not be required to open up their networks. But do they have to get out of the long distance business? Of course not.
Cake and eat it, anyone?
The real solution would be to have the phone companies divest the part of them that manages the wiring between your house and the CO.
Gentoo Sucks
Why is it when I hear 'This is a decisive victory for consumers, for innovation and for free markets.' come out of the mouths of large firms like AT&T, I begin to cringe?
I have never let my schooling interfere with my education.