FCC Reclassifies DSL, Drops Common Carrier Rules

Neil Wehneman writes "Via Media Law Prof Blog, it is reported that the FCC has reclassified broadband service as an "information service" instead of "telecommunications". This, among other things, gives the Baby Bells the same gift the cable companies got with Brand X : the right to stop opening their lines to competitors."

Comments

But who paid for the POTS infrastructure?

[Gothmolly]

Yes, its mostly modern fiber and VOIP internally, but there's copper to every house, and poles, and those discrete switching stations in the bushes. Who paid for all that? Since we (the US Taxpayers) did (whether its good or bad is irrelevant to this discussion), it should be open to all.
Those who live by the government teat (Telcos) should have to die by it, too.

Surely this leads to less competition?

[DavidRawling]

I don't understand.

Surely this means that the local "Baby Bell" will be able to prevent other companies from using the infrastructure, either directly or by pricing them out of the market?

If so ... how does this help the consumer? Who lobbied for this? And why was it done? TFA has little detail and the FCC press release seems to be more self-servient than anything else.

Now ... if the price they sell broadband at is $29.95/month, but they will only sell line access to the competing ISP at $39.95/month, the ISP cannot compete.

In Australia Tel$tra did just this (briefly) and got a slap on the wrist from our consumer agency, the ACCC. Is there a similar organisation in the US? Is that what the FCC press release is commenting on in the 2nd last para:

In a Notice of Proposed Rulemaking, the Commission seeks comment on whether it should develop a framework for consumer protection in the broadband age - a framework that ensures that consumer protection needs are met by all providers of broadband Internet access service, regardless of the underlying technology.

Not a good thing

[gomaze]

This is going to only going to create local monopoly providers. I work for a small, state of michigan only internet provider. That has been around for 8 years. We have started servicing DSL and it is exploding.

People are coming to us because they dont have to call flippin India to get tech support and they know we are a locally owned family company. We can provide DSL for $20 a month for a year contract and after you add the taxes and charges of SBC you are at that or over it.

It is times like this why I shake my head and ask why the rebulican party wants to kill local businesses, seeing that is what they say they stand for.
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Gomaze

The real reason this happened

[nurb432]

IS not to protect consumers.

The dropping of common carrier status also removes any protection of content. Now the ISP will be liable for content that passes over their lines.

The 'consumer' no longer will have a right to privacy, since its no longer considered 'telecommunications', which was protected.

So its not about protecting us, its about controlling and monitoring us. Oh, and if it happens to make the big campaign contributors a few bucks along the way, all the better.

Re:Larry Magid

[suitepotato]

The majority of competitive DSL ISP offerings are through CLECs, which are Competitive Local Exchange Carriers. Should the ILECs (Incumbent Local Exchange Carriers) be required to keep their copper open to CLECs, then competitive DSL will still be an option should any CLEC choose to pay for the co-location, backhaul, per line cost, etc.

It makes no financial sense whatsoever to eliminate CLECs from the copper/fiber as they PAY the ILECs for the access/maintenance and always have. The majority of Speakeasy lines are through COVAD (properly capitalized, it is an acronym, COpper Value Added Distributor) if I am not mistaken. However, there really isn't a lot of money to be made at consumer DSL as a CLEC and acting as an ISP over ILEC DSL set-ups is more cost effective. This ruling eliminates the requirement that the ILECs open up their DSLAMs to other ISPs but it does not invalidate the existing contracts. Merely means that the ILECs will have supreme latitude in renegotiation at the contract's expiration. Don't like their terms? Tough.

But all those Speakeasy over COVAD lines aren't going anywhere. Most likely, they will have to do some hard thinking and probably look at partnering with CLECs.

BTW, DSLAM means DSL Access Multiplexor. These are where all the DSL lines terminate and aggregate first and then hand off usually via Fast Ethernet or DS-3 to a switch/router. CLECs may have one or several at a colocation. Some use multiple kinds and some use one kind. See Paradyne, Copper Mountain, Cisco, Lucent, Alcatel for DSLAM models availible.