Black Friday 2005

Today the FCC unanimously agreed to treat the high-speed Internet service, known as digital subscriber line (DSL), as an “information service,” which insulates it from many traditional telephone rules, such as requirements to lease network access to independent ISPs, such as Earthlink, AOL, etc. The move supposedly eliminates any 'unfair competition' with cable broadband since they were designated as "information services" in 2002. As part of this new decision, 9 months from now, DSL providers will no longer have to contribute 10 percent of their revenue into the Universal Service fund, a program to subsidize phone service in rural areas and the e-rate program.

OK, so now all broadband services will be classified as information services rather than telecommunication services. How does that affect the Ensign-McCain Free Market Telecommunications Framework Act of 2005? According to McCain's aide, his intent in sponsoring this bill is to make broadband service more universally available and that he doesn't support the provision within this bill that outlaws municipal networks. Certainly the amendment to the Telecommunications Act of 1996 is a ringing endorsement of municipal networks/universal access. And now this..

Consumers Union (CU) and the Consumer Federation of America (CFA) warned that today’s Federal Communications Commission (FCC) order restricting access of competitors to digital subscriber lines (DSL) will force existing independent broadband providers out of the market and drive up the price of high-speed Internet for consumers. ...

The FCC’s action today underscores the need for a competitive broadband alternative that does not depend on cable or phone lines—wireless Internet," said Kimmelman. "As the FCC shuts off competitor access to DSL and cable lines, it should free up airwaves to foster affordable wireless Internet offered by independent companies." HearUsNow.org

No more dialup? The only positive aspect of this decision is that it might help Chapel Hill and Carrboro move forward on developing municipal networks, sooner rather than later.