The aftermath of a June Supreme Court decision may see DSL deregulated to enable phone companies to compete with cable.
The FCC governs cable Internet access, and gives cable companies exclusive access to their broadband lines, according to the Wall Street Journal. Phone companies have been subject to “common carrier” laws, where they must lease lines to third-party competitors.
Phone companies may see their wish to get that provision dropped fulfilled. But the four-member FCC must avoid a split decision on the issue in order to do that. The Bells claim they will be able to expand their networks and compete better with cable.
Qwest Chairman and CEO Richard Notebaert said in the article: “(C)able is very competitive is on high-speed Internet. They got a head start and we have regulation and they don’t. We’re hopeful (FCC) Chairman Martin will be able to rectify that.”
The cable competition Mr. Notebaert observes would be a surprising revelation to many people who live in places where a single cable provider has a monopoly.
While countries like Japan and South Korea offer true broadband with speeds of 100MB and monthly prices around $25 USD per month, US customers have the “privilege” of paying double that amount for single-digit MB download speeds.
True competition won’t arrive until more options for delivering high-speed Internet access become available. Broadband over power lines, WiMax, and maybe even xMax will drive that competition.
It would be great for consumers if deregulation could bring about better pricing and faster networks from the Bells. Right now, $40 a month for 3MB down/384KBps up isn’t even close to what some of the world considers competitively priced, let alone true broadband access.
David Utter is a staff writer for Murdok covering technology and business. Email him here.
