FCC Clears DSL Deregulation
By BRIAN BLACKSTONE
DOW JONES NEWSWIRES
August 5, 2005 1:03 p.m.
http://online.wsj.com/article/0,,SB112325567561206164,00.html?mod=home_whats_news_us
WASHINGTON -- The Federal Communications Commission on Friday voted
unanimously to deregulate phone companies' high-speed Internet services by
reclassifying DSL as an information service instead of a more tightly
regulated telecommunications service.
The decision, a victory for phone companies that sought the relief,
eventually will lift requirements for incumbent carriers to provide
guaranteed access to their broadband networks at set rates.
The ruling "is an explicit recognition" that the communications marketplace
"is vastly different than the one governed by regulators over the last 30
years," said FCC Chairman Kevin Martin.
Information services are generally exempt from many access fees and
universal service payments that telecom providers must pay. The FCC,
however, mandated that DSL providers continue to contribute to universal
service for 270 days in order to give the agency time to develop broad
reform of the system, which provides subsidies for rural phone service. It
also requires DSL providers to grant network access to Internet service
providers for one year.
The DSL vote comes in the wake of a June ruling by the Supreme Court in the
"Brand X" case that upheld the agency's 2002 decision to designate
cable-modem as an information service.
Mr. Martin had said in the wake of the Brand X ruling that he wanted to put
both services on equal regulatory footing.
"At last, regulations are catching up to where consumers and technology
have been for some time," said Susanne Guyer, senior vice president at
Verizon Communications Inc.
"We're taking clearly the next logical step," said Republican FCC
Commissioner Kathleen Abernathy. "I expect our decision today will spur
further investment" in broadband.
Democratic Commissioner Michael Copps, who "objected strenuously" to the
2002 vote to reclassify cable-modem service, said the Brand X ruling "has
fundamentally changed the legal landscape."
"The handwriting is on the wall. DSL will be reclassified whether I agree
or don't agree," Mr. Copps said. He praised the decision to maintain
universal service requirements, saying it "assures the stability" of the
program.
Fellow Democratic Commissioner Jonathan Adelstein called the item "a
meaningful compromise" since it maintained rural subsidy requirements and
protections for consumers and the handicapped.
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923 Fax: 713-743-3927
antunes at uh dot edu
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