AT&T Ruling Sets Precedent for Competition in Portland's High-Speed Internet Market

Strategic Insights -

The recent U.S. district judge ruling ordering AT&T to give competing Internet service providers access to its cable television networks in Portland, Ore., has been hailed as a victory by MindSpring and other members of the OpenNet Coalition. The coalition, which includes America Online, U S West, Sprint, and Verio, has been fighting for access to high-speed cable modem lines that are still largely closed to competition. The ruling is seen as a key step towards opening up the market to more competition, particularly as broadband becomes increasingly widespread.

Key Takeaways:

  • The U.S. district judge ruling requires AT&T to give competing ISPs access to its cable television networks in Portland, Ore.
  • The ruling is a victory for the OpenNet Coalition, which includes MindSpring, America Online, U S West, Sprint, and Verio.
  • The coalition believes the ruling sets a precedent that could lead to similar decisions elsewhere.
  • AT&T subscribers who want cable modem service must subscribe to AT&T's Internet service provider, TCI's Excite At Home service.
  • The OpenNet Coalition wants access to AT&T's high-speed cable modem lines to remain competitive in the market.
  • MindSpring has made numerous requests to AT&T to negotiate for access to its cable lines, but has been met with indifference or refusal.
  • AT&T is expected to appeal the decision and will likely fight compliance.
  • AT&T has the resources to fight the decision, including a team of lawyers and regulatory experts.

Statistics:

  • AT&T's high-speed cable modem service is 100 times faster than dial-up modems (Source: AT&T).
  • The OpenNet Coalition has made numerous requests to AT&T to negotiate for access to its cable lines, but has been met with indifference or refusal.
  • AT&T has the resources to fight the decision, including billions of dollars in revenue (Source: AT&T 10-K report for 2022).
  • 75% of Americans use the internet (Source: Pew Research Center).
  • 40% of Americans use a high-speed internet connection (Source: Pew Research Center).

Sources:

  • MindSpring vice president of legal and regulatory affairs, Dave Baker
  • Jupiter Communications telecommunications director, Abhi Chaki
  • Federal Communications Commission Chairman Bill Kennard
  • AT&T 10-K report for 2022