SCOTUS To Hear Small ISPs' Case Against AT&T

snydeq writes "The US Supreme Court has agreed to hear an antitrust case that alleges AT&T squeezed out small ISPs by charging too much for wholesale access to its phone network. The case, originally brought to US District Court in 2003, had been appealed to the US Court of Appeals for the Ninth Circuit. But AT&T requested the case be heard by the Supreme Court on the grounds that prior conflicting appeals court decisions in this area should be resolved at that level. As part of the case, the Supreme Court will likely also ascertain whether AT&T could be held to violate antitrust law without setting its retail prices below its own cost."

Comments

Ownership of the network

[Kenz0r]

IANA US Citizen, so I only have a limited understanding of how you handle things over there. But I think things like a telephone network should not be privately owned. Shouldn't the US government have invested in laying telephone and network infrastructure, and then lease it out to telco's? Then there could have nice fair competition, which would be good for the customer, right? What happened down here in Belgium, is that the government used to own the telephone network, but then partly privatized the phone national company, which now owns the entire network and sells access to smaller companies (similar to the situation described in TFS). Down the line, it's us customers who get overcharged and get really crappy DSL lines.

Re:Ownership of the network

[Lumpy]

Yup I can also attest to the Above. In the mid 90's I also owned a medium sized ISP in michigan. When 56K became popular and we had to move from 28.8 (we had working 33.6 lines, but then magically the line speeds dropped fast to 28.8 and they would not explain why.) to 56K the Telco I had to deal with gave me prices on the T1 lines that would support 56K dial up channels at a $3500.00 a month rate AND had a fee of per minute charges on incoming and outgoing. It would have forced me to up my rates to almost $30.00 a month from the $19.95 I was charging. Lots of other local ISP's DID up their rates which allowed me to run an extra year at 28.8 speed at $19.95 a month and then we ran the last year at $15.95 a month while I was negotiating selling my customer base and business to earthlink.

The moment you told them you were an ISP or were looking for ISP dial up services, they started treating you like crap. My POP for my internet connection was down near the indiana border because the local Telco's prices were insane and I was lucky enough to have found a backbone ISP that had a decent rate, I paid $2500.00 a month for my T1 line and T1's worth of bandwidth..