In what looks like the makings of busy week, the Supreme Court is preparing to hear statements from cable modem-based Internet service providers about the sharing of cable modem capable networks with competitors.
The point of contention rises from an FCC ruling, which classifies cable modem Internet service as an unregulated information service. Reversal of the FCC’s decision would allow customers to have more choices when it comes to cable modem Internet service, while driving down service prices.
Supporters of the President Bush-supported FCC decision say if the ruling were overturned, economic growth would be damaged. An article in PCWorld.com expands on these thoughts by saying
Supporters of the FCC action say broadband adoption in the U.S., hailed by President George Bush and other politicians as an engine of economic growth, would slow if cable providers were forced to share their networks with competing ISPs. Cable providers would have less incentive to improve connection speeds and otherwise upgrade their networks if they have to sell their networks at wholesale prices to competitors, says Dan Brenner, senior vice president for law and regulatory policy at the National Cable and Telecommunications Association (NCTA).
A government effort to determine wholesale prices would put the cable industry in regulatory limbo, Brenner adds. “Practically, how do you get from what we have today to [wholesale pricing] without a heavy-handed government intervention?” he says.
The impending decision is similar the one concerning telecommunications companies and DSL Internet service providers, in which the telecoms were forced to share their DSL networks with competitor ISPs.
The Supreme Court will hear arguments on Tuesday, the same day the Grokster/MGM case is scheduled to begin.
PCWorld’s article also indicates
Consumer groups, including Consumers Union and the Consumer Federation of America, have weighed in on the Brand X case, saying that additional ISP choices will be good for consumers and will encourage more U.S. residents to adopt broadband.
Chris Richardson is a search engine writer and editor for murdok. Visit murdok for the latest search news.
