FCC deregulates DSL
August 16th, 2005On 08/05/05, the FCC adopted new rules eliminating the “mandated sharing requirement on incumbents’ wireline broadband Internet access services”. This means that Incumbent Local Exchange Carriers (ILECs) will not have to open their wires for competitors any more. The FCC believes that this step will foster competition between cable and DSL broadband providers, encourage ILECs to invest in infrastructure and thus improve broadband availability and service. (Read the FCC’s press release (Word document))
Consumer and Public Interest groups like the Media Access Project have a different take on the situation. They say that only open access brings true competition - the new ruling in contrast will give people less choices and higher prices.
In fact, the U.S. keep falling behind in world broadband penetration rankings. Whether or not a citizen has access to broadband Internet depends strongly on his socio-economic status and his location in a rural or urban area. This ‘digital divide’ will not be removed by the new FCC regulation, says Jeannine Kenney, senior policy analyst for Consumers Union. “If the FCC is content to let cable and phone companies control the broadband market, then consumers need a third option — wireless broadband that is less expensive and which doesn’t depend on DSL or cable modems. It offers the best and perhaps now the only way to close the digital divide.” Read the Free Press Broadband Report for more.