FCC votes to protect cable Internet firms from line-sharing laws

Thursday, March 14th 2002, 12:00 am

By: News On 6

WASHINGTON (AP) _ Federal regulators decided Thursday to exempt cable Internet companies from laws that force telecommunications providers to open their lines to competition.

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 non-discriminatory 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 firms are only required to share their lines when specifically told to by the government. As a condition of the AOL Time Warner merger, that firm was forced to offer its consumers a choice of Internet service providers on its high-speed lines.

Broadband Internet service that is carried over telephone wires, known as Digital Subscriber Line service, is governed by telephone regulations. The Bell companies have to share their lines if they want to be able to sell their Internet services nationwide.

Thursday's vote makes sure that cable companies won't have to share. That dismays critics concerned about the increasing phenomenon of media consolidation in which fewer companies own television stations, Web sites, as well as the pipes that bring them to American homes.

``Unlike the telephone network, (cable firms) own a major number of content services,'' Chester said. ``They will serve as the gatekeeper and give their own products preferential treatment.''

Representatives of AT&T, the nation's largest cable Internet provider, and the National Cable and Telecommunications Association, the cable trade group, said they had no immediate comment on the decision.

Powell, the commission's chairman, said the commission is following the lead of Congress.

``We cannot be driven to pick the definition we prefer based on what you think the consequences are going to be,'' Powell said. ``The ruling is an interpretation of statute.''

Michael Copps, the commission's lone Democrat, cast the only dissenting vote.