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  1. #1
    Join Date
    Feb 2005
    Location
    Rochester, MN
    Posts
    916

    Thumbs down FCC is going to ruin small companies.

    FCC to seek parity after net ruling
    >From Wall Street Journal, June 29, 2005

    Federal Communications Commission Chairman Kevin Martin plans to act as
    quickly as possible to change the agency’s rules so phone companies won’t be
    required to share their Internet lines with rivals.

    “We’ll need to move quickly to establish regulatory parity between telephone
    companies and cable companies that are providing a broadband service,” Mr.
    Martin said in an interview yesterday, a day after the Supreme Court upheld
    the FCC’s decision to allow cable companies exclusive access to their
    broadband Internet lines. Telephone companies are currently required to
    share their digital-subscriber lines, or DSL, for the Internet with rivals
    but want similar exclusivity.

    Hours after the decision, Mr. Martin directed FCC lawyers to examine how the
    agency can best move forward to change rules for phone companies, too. The
    agency has a few options available, although it is unclear when Mr. Martin
    might have the political consensus needed to change those rules.

    The five-member FCC has been down a commissioner since former Chairman
    Michael Powell left in March and Mr. Martin assumed the top slot. The only
    other Republican commissioner at present, Kathleen Abernathy, is expected to
    leave as soon as the White House can find a successor, and several of her
    top aides already have left the FCC. Filling the two Republicans’ seats has
    proven difficult for the White House, however, as two top nominees dropped
    out for personal reasons during the vetting process.

    The FCC’s two Democrats, Michael Copps and Jonathan Adelstein, have good
    relations with Mr. Martin, but it is unclear if they would be willing to
    sign on to the Bush administration’s high-speed Internet strategy, which
    essentially provides for a cable and phone duopoly in local markets. Mr.
    Martin, a Republican, hasn’t yet tested his ability to sway his Democratic
    colleagues to his side on any controversial matters since taking over as
    chairman.

    The two Democrats previously have echoed concerns raised by consumer groups
    that allowing cable and phone companies exclusive access over their
    broadband Internet networks will limit competition.

    Cable and phone companies argue they have little incentive to spend billions
    of dollars to upgrade local networks if they will have to provide rivals
    access to use those lines at regulated rates. The Bush administration is
    sympathetic to those arguments and has become increasingly concerned that
    the U.S. is falling behind other nations in broadband deployment. Mr. Martin
    says encouraging the spread of broadband Internet is his top priority.

    “I think that it is important that consumers have access to all different
    kinds of information that’s available on the Internet, but I think that
    companies that are investing in providing high-speed lines to consumers want
    to make sure they can provide those services…and forcing them to sell those
    lines at a discount would discourage them from investing in the upgrades
    necessary to provide those services,” Mr. Martin said. “I think the benefits
    outweigh some of the concerns raised.”
    Area51.mn VPS, Dedicated & Colocated Servers.
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  2. #2
    Join Date
    Feb 2005
    Location
    Rochester, MN
    Posts
    916
    This means that your local phone company will control local loop prices and currently for example our local phone company charges little over $2000 for a ds3 local loop. this is regulated if the FCC passes this they could double or triple it and they have no competition to stop them because of how the phone system is setup you can only have one local phone company (the one who owns the copper, all the rest just resell that copper and buy it at the regulated prices).

    This means higher bandwidth prices for hosting, and only large corperate entities will be able to afford to make deals with qwest, at&t and others that own all of the rights to local copper and fiber.

    write your congress man/woman.
    Area51.mn VPS, Dedicated & Colocated Servers.
    Area51 Computers Custom Servers & Gaming Systems. (Since 1998)
    NetAffect Email & Web Hosting Services. (Since 1996)
    Quality Systems & Service Since 1996

  3. #3
    Join Date
    Jul 2002
    Posts
    3,352
    Originally posted by Kiamori
    This means that your local phone company will control local loop prices and currently for example our local phone company charges little over $2000 for a ds3 local loop. this is regulated if the FCC passes this they could double or triple it and they have no competition to stop them because of how the phone system is setup you can only have one local phone company (the one who owns the copper, all the rest just resell that copper and buy it at the regulated prices).

    This means higher bandwidth prices for hosting, and only large corperate entities will be able to afford to make deals with qwest, at&t and others that own all of the rights to local copper and fiber.

    write your congress man/woman.
    what if your congress man/woman are in the deep pocket of baby bells?

  4. #4
    Join Date
    Dec 2002
    Location
    Texas
    Posts
    424
    everyone is always in someones pocket, even if the worst happened there would be a backlash....it will work out in the end.

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