In a monumental judgment on Friday, the Federal Communications Commission (FCC) came out with a verdict burying the regulation of phone companies having to share internet access with other providers at concessional rates. According to the FCC, phone lines that carry data are not a telecommunication tool but they are in fact means of supplying knowledge and information and hence they should not be shared.
The FCC panel came out with a 4-0 vote in favour of the above mentioned verdict. As a result, companies like Verizon Communications Inc. and many others are relieved from the burden of giving discounted access to for autonomous Internet service providers like EarthLink Inc.
This ruling was on expected lines as in June, the FCC had declared that the cable companies need not share their internet liens with competitor companies- a verdict endorsed by the U.S. Supreme Court.
FCC Chairman Kevin J. Martin termed the decision as a huge fillip for the phone companies and also felt that now it buries the discrimination that till then was evident between phone and cable service companies after the June verdict.
On the other hand, Verizon and SBC Communications Inc. heaved a huge sigh of relief
commenting that the saying the end of the unfair rule will in all possibility assist phone companies to even better investment in broadband and improved servicing for the consumers.
But the advocacy organisation did not second the idea. According to them, all the judgement could lead to is subsequent price hike, less options for the consumers and even lesser scope for improvements in facilities offered.
As soon as the expected verdict was out, the consumer forums were seen crying hoarse over the judgement. According to Andrew Jay Schwartzman, president of the Media Access Project in Washington., it won’t be very good for independent Internet providers as the broadband marketplace will be ruled by the big cable and phone companies and in the process the growth of internet will be halted to a great extent.”
Gene Kimmelman, the group's director of public policy also objected to the ruling claiming that “it would facilitate the big phone companies to put their noses way ahead and the consumers will be the biggest sufferers in the end”.
But Patrick Mahoney, senior analyst with Yankee Group spoke on different lines. He felt that the consequence of Friday's judgement on Internet providers might not be that grave as they are not well established anyway.
For the record, out of the total of 37.9 million broadband customers in 2004, 56% used cable and 37% used phone companies' lines.
