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Cable television broadcasting industry

Internet Companies Lobby for Open Access to Network in Denver

Strategic Insights

— 1 min read

As the future of the Internet hangs in the balance, internet companies are lobbying for open access to the network that will be created through AT&T's acquisition of Tele-Communications Inc. The debate has moved to Denver, where a City Council committee is considering the issue today. If the network is not opened to multiple providers, a duopoly will emerge, slowing the growth of the Internet, said Doug Hanson, chief executive of Rocky Mountain Internet. A coalition of internet companies, including America Online, Qwest, MindSpring, EchoStar Communications, and Verio, are pressing Denver and other cities for open access.

Key Takeaways:

  • The merger of AT&T and TCI could create a duopoly in the Internet market, potentially slowing its growth, according to Doug Hanson, chief executive of Rocky Mountain Internet.
  • A coalition of internet companies, including America Online, Qwest, MindSpring, EchoStar Communications, and Verio, are lobbying for open access to the network that will be created through AT&T's acquisition of Tele-Communications Inc.
  • Denver has a chance to take a national leadership stance in pressing for open development of the network, as 19 metro-area governments must approve the transfer of TCI franchises, and 350 of 987 local governments nationally have already done so.
  • The proponents of open access argue that waiting will make it harder to require open networks in the future, as investments will have been made in a closed network.
  • AT&T and TCI argue that requiring open access would be tantamount to handing over their multibillion-dollar private investment to competitors, and could unravel the merger under financial uncertainties.

Statistics:

  • 987 local governments must approve the change of control in the AT&T/TCI merger.
  • 350 of 987 local governments have already approved the deal.
  • 19 metro-area governments must approve the transfer of TCI franchises, with Denver being one of them.
  • The merger plans could unravel under the financial uncertainties of requiring open access to the network.

Sources:

  • "Stock Watch" article, Denver Post, [no date specified]
  • Quote from Doug Hanson, chief executive of Rocky Mountain Internet
  • Quote from Sarah Duisik, AT&T spokesperson
  • Quote from Councilman Hiawatha Davis, chair of the public works committee
  • Quote from Ken Fellman, lawyer for the consortium of local governments that oversee TCI
  • Article by Joe Mahoney, Special to the News

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