The Federal Communications Commission (FCC) failed in its bid to have the U.S. Ninth Circuit Court of Appeals (California) rehear its October 2003 decision declaring that cable networks are telecommunications services rather than information services. The declaration opens the door to local government regulation which may force the networks to share broadband access lines.
Telecommunications service providers such as local telephone service companies are required by federal law to allow others to lease their lines to offer competitive phone and Internet services. In contrast information service providers have been exempt from such sharing following a 2002 FCC vote. The Court of Appeals decision is a serious blow to efforts by the FCC to shield the cable industry to promote growth and investment upgrading networks to offer high-speed cable internet services. Phone companies have argued the FCC ruling left them at a disadvantage as they too have invested heavily to provide high-speed DSL services. The FCC is considering an appeal to the U.S. Supreme Court.
For more information, please click:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245687A1.pdf
http://news.com.com/2100-1034_3-5183423.html
http://www.siliconvalley.com/mld/siliconvalley/news/editorial/8332306.htm