FCC telecom decisions and 'choice'

Saw a news update in USA Today that the FCC has decided that DSL will be treated in a special category that will effectively make it the same as hi-speed internet on cable. Rather than being a phone service, which would require DSL companies to share their lines and lease them over to competitors, the service will be categorized so that DSL (like cable) doesn't have to share the lines at all.

That effectively kills the policies of the last several years, and in doing so many small ISPs may wind up forced out of business.

I've argued with some friends and co-workers on this one. I think the FCC is dead wrong in their application of their rules to both cable and DSL. I know the old system (forced choice) was flawed, one of the biggest flaws in my mind being that no matter what the original telco or cable provider was getting paid for the service, and no matter what, you were always somewhat dependent upon that provider, even if you weren't their direct customer. In effect, even if you hated "ma bell," you were paying them some portion of your payment to say "competitor x" that advertised better service and lower prices.

I wanted to see the same forced competition for cable, and wanted it to stay on DSL services. Without doing so, the choices of ISPs and hi-speed providers is much more limited and the incentive to compete no where near as high. Now we'll see much less choice available. Instead of 40 providers over 2 - 4 mediums, there's going to be 4 providers (give or take) over the same mediums: hi-speed cable (if your area has coverage), DSL (again, if you have coverage), ISDN (if you have coverage) or perhaps fiber (if covered), and perhaps two-way satellite (if you have exposure to the south western skies). You may be lucky enough to have low-speed options available, but even those choices are drying up fast and customers move to hi-speed and the costs outweigh the potential profit returns for the low-speed providers.

I favor competition, and the more the merrier. I want to see prices for cable internet drop, as I happen to be a customer that has only limited choices at my own residence. I have friends in the same boat. In their case, DSL is their only option as the costs to string cable to their home was very prohibitive (and would have to be paid by them, rather than the cable co., as they are the only residence that would be served).

I hope that fiber to the home, internet over power lines and other choices spring up. I know there are others (wireless services over cellular type services and more), but to me, I want as many choices available as possible. Because of that, I am (as noted above) severely disappointed with the FCC's decisions in the telco choice areas -- apparently made thanks to heavy lobbying by both the cable providers and then later the telcos. Too bad their voices were more readily heard over those of the small providers that were operating during the time of "forced choices."
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Reply #1 Top
Generally I fall toward any anti-regulatory argument, but in this case I can't. Small ISPs can't hang their own phone lines for every house that orders DSL. Phone lines are akin to roads at this point, and there is ZERO difference between forcing them to share for long distance and forcing them to share for Internet access.

I hope that in the next year something will be done to reverse this. I'll lose my Internet access, that's for sure, and I'll have to go buy the crap service that cable broadband offers around here. The quality of Internet service will decrease dramatically with this.

They claim that this will open the doors for innovation, and that the phone companies will magically decide to upgrade their infrastructure now that they don't have to share it. I think that is garbage. They will do only what makes them competitive with cable providers, and not a damn bit more.
Reply #2 Top
Seems you and I think alike again Baker.

I really do prefer to let market forces do the determining, but I see things the same way you do. As long as there were providers out there willing to package and resell a wide variety of products customers were winning. The FCC has slowly but surely kissed up to big business in these areas though, and the telcos and cable co.'s are winning while consumers loose.

A coworker was defending the telcos and cable co.'s and tried to tell me that any competiting companies should have to string their own cables. As if they could get the right-of-ways and easements that would be needed to add say 20 more cables to the already over-burdened poles on the side of the road.

For my money, TimeWarner, Comcast, Verizon, Qwest, SW Bell and others should all have to open their cables to everyone *period* I should be able to get AOL Hi-speed as a bundle from AOL, rather than having to get ripped off by Comcast, then having to pay extra to get AOL. Not that I'm a big supporter of AOL, but I'd like the choice without having to be ripped off by Comcast and/or being forced to buy cable TV services that I don't need just to get the cheapest hi-speed internet prices from them. Why should I have to take the TV/internet bundle at $59 a month (combined) instead of getting say AOL at the same price without getting TV service I never use (I prefer DirecTV, even though I despise their additional receiver charges).