WASHINGTON – The U.S. Supreme Court ruled Monday that cable operators in the States do not have to open their networks to competitive third party Internet service providers if they don’t want to.
Known as the “Brand X” case, one wonders how many Canadian cable operators are looking wistfully southward, wishing that was so, here.
In Canada, however, the CRTC ruled in the mid-1990s that the Internet is a telecom service and, like telcos, cable operators must make space on their networks for third party Internet providers. The Commission even set wholesale rates (in the $20 to $24 range) that cable companies are allowed to charge.
The CRTC even made mention of it in its May 12 VOIP ruling, ensuring that third party VOIP providers could not be excluded.
As for the U.S. MSOs, they get to merrily carry on with nobody else on their networks (unlike the American telcos, which must rent space).
“Today’s Supreme Court’s decision is a victory for consumers and maintains the momentum to advance broadband in the U.S.,” said Kyle McSlarrow , National Cable Telecommunications Association president and CEO. “Classifying cable modem service as an interstate information service, as the FCC did, keeps this innovative service on the right deregulatory path.”
“ACA members are taking the financial risk and bearing the cost to build and create high-speed networks in their markets,” added Matt Polka, president and CEO of American Cable Association. “However, the capital markets and the desire to build these networks would dry up if heavy regulations were imposed. As a result, imposing a telecommunications regulatory regime on cable modem service would have impeded the rollout of high-speed services in smaller markets and rural areas.”
Hmm, that argument has a bit of a familiar ring, doesn’t it?
– Greg O’Brien
