FCC Backs Away from Forcing Cable Companies to Open Networks to Internet Providers

The Federal Communications Commission has decided against forcing US cable television companies to open their networks to internet service providers, a move that could limit the delivery of high-speed internet services to American homes. This decision comes as part of the pending merger between AT&T and TCI, two giants of the US telecommunications and cable industry. The FCC has stated that it will keep a close eye on the development of high-speed internet services, leaving open the possibility that it could change its position later.

Key Takeaways:

• The FCC has decided against forcing US cable television companies to open their networks to internet service providers, citing the early stage of high-speed internet development.
• The decision is expected to limit the ways companies such as America Online (AOL) deliver high-speed internet services to American homes.
• The pending merger between AT&T and TCI is expected to be less affected by the decision, with AT&T executives warning that forced open access could dent the value of the acquisition.
• The FCC will continue to assess the issue of regulatory agency intervention in the cable industry.
• Cable companies want to charge a fee to internet companies that rely on their networks, while internet companies argue that cable systems should be as open as public telephone networks.
• The FCC chairman, William Kennard, hopes that wireless and satellite technologies will provide additional competition in the market.

Statistics:

• The FCC has stated that it will monitor the development of high-speed internet services "very closely" in the future.
• The pending merger between AT&T and TCI is a significant development in the US telecommunications and cable industry.
• AT&T and TCI hold a combined market share of over 50% of the US cable industry.

Sources:

• "FCC Backs Away from Forcing US Cable TV Companies to Open Networks to Internet Providers". Bloomberg.