Feds exempt WASHINGTON >> Federal regulators yesterday exempted cable Internet companies from laws that force telecommunications providers to open their lines to competition.
cable ’Net firms
from sharing lines
The FCC's ruling may jeopardize
LavaNet's dealings with OceanicBy Star-Bulletin staff and news services
The Federal Communications Commission, in a 3-1 vote, said the decision was necessary to spark more investment in high-speed Internet services.
The decision would "promote our goal of fostering a minimal regulatory environment that promotes investment and innovation in this competitive market," Commissioner Kathleen Abernathy said.
But critics said the move puts cable companies into a "regulatory black hole."
"Instead of ensuring that the qualities that have made the Internet valuable in the first place, the nondiscriminatory environment, (FCC Chairman Michael Powell) is turning the internet on its head by in essence turning it over to these major monopolists," said Jeffrey Chester of the Center for Digital Democracy.
Unlike telephone companies, cable companies are required only to share their lines when specifically told to by the government. As a condition of the AOL Time Warner merger, that company was forced to offer its consumers a choice of Internet service providers on its high-speed lines.
Oceanic Time Warner Cable is Hawaii's only provider of cable service and in November began offering EarthLink and AOL Internet services in addition to its own Road Runner service, but Oceanic does not carry other local providers, such as LavaNet, Hawaii Online and Pacific Information Exchange.
Oceanic, the state's largest Internet service provider with 80,000 subscribers on its system, never had much incentive to open its cables to other providers to begin with, said Yuka Nagashima, president of LavaNet. "Why would they do it?" she asked. "It was always in their court. I'm sure this ruling didn't help."
Time Warner is negotiating with other Internet providers, but issues such as price remain in dispute with LavaNet, Oceanic President Nate Smith said. "Based on (Nagashima's) remarks, you'd have to say a deal with LavaNet may be (in jeopardy)," Smith said.
Yesterday's vote, classifying cable Internet as an "information service" rather than a telecommunications service that is subject to the open-access provision, makes sure that cable companies won't have to share anytime soon.
While the FCC indicated it would explore the possibility further, the commission used a special authority to overrule a federal court decision that would have opened a cable company in Portland, Ore., to the sharing requirement.