GTE Corp. Sues AT&T Corp. and Excite@Home Over Anti-Competitive Practices

Strategic Insights -

The lawsuit filed by GTE Corp. against AT&T Corp. and Excite@Home has sparked controversy in the broadband Internet access market. GTE claims that AT&T and Excite@Home have set up a business arrangement that denies consumers a choice in who they want as their preferred broadband services provider. This alleged anti-competitive practice is at the center of the lawsuit, with GTE arguing that other Internet service providers should have access to the AT&T-controlled cable pipe. The outcome of this lawsuit could have significant implications for the future of broadband Internet access in the US.

Key Takeaways:

  • GTE Corp. has filed a lawsuit against AT&T Corp. and Excite@Home, alleging anti-competitive practices in the broadband Internet access market.
  • AT&T and Excite@Home have an exclusive agreement that prevents competing ISPs from accessing the AT&T-controlled cable pipe.
  • GTE argues that this arrangement denies consumers a choice in who they want as their preferred broadband services provider.
  • Other ISPs, including America Online, Mindspring, and the baby Bells, have argued that closed networks are anti-competitive and hinder the promotion of advanced telecom services.
  • The case is related to the issue of open access, with competing ISPs claiming that they should be able to offer broadband services through the AT&T-controlled cable pipe.
  • AT&T claims that it is not required to open its network to competitors, citing the Federal Communications Commission's (FCC) jurisdiction over such matters.

Statistics:

  • GTE Corp. claims to have a market share of over 95% (Source: Excite@Home statement).
  • Excite@Home has a market share of less than 2% (Source: Excite@Home statement).
  • The agreement between AT&T and Excite@Home is set to expire in 2002 (Source: AT&T statement).

Sources:

  • Newsbytes. "GTE Corp. Sues AT&T Corp., Excite@Home Over Broadband Access." October 25, 1999.
  • Excite@Home. Press statement. October 25, 1999.
  • AT&T Corp. (no statement ready by deadline).