Originally published August 15 2005
DSL deregulation effort sparks opposition
by Mike Adams, the Health Ranger, NaturalNews Editor
Federal regulators on Friday eased rules governing high-speed internet services offered by phone companies, saying they hope it will speed internet growth, but critics say it will lead to fewer choices and higher prices for consumers.
FCC Chairman Kevin Martin said the unanimous vote by the agency's four commissioners "ends the regulatory inequities that currently exist between cable and telephone companies" providing broadband Internet services.
Without guaranteed access at government-mandated rates, providers of digital service, or DSL, on lines now leased from the big regional Bells or smaller phone companies will have to negotiate with them over rates and access.
Consumer advocates criticized the deregulation --- which will take effect after a one-year transition period --- contending it will lead to fewer choices and higher prices for consumers by forcing existing independent broadband providers out of the market.
She said consumers may soon be forced into longer-term contracts and arrangements where they have to buy additional services to get high-speed Internet.
Earthlink Inc., which now provides service on leased lines, said it hopes to extend its current network sharing agreements with phone companies and does not expect to get bumped or priced off the lines.
"We drive subscribers to their network, so they have a vested interest in keeping reasonable market prices," said Dave Baker, Earthlink Inc.'s vice president for law and public policy.
The vast majority of the nation's nearly 16 million DSL users buy that service directly from the four Bells: SBC Communications Inc., Verizon, BellSouth Corp., and Qwest Communications International Inc.
The biggest non-Bell providers of DSL service, Covad Communications Group, Inc., had already agreed to commercial leasing contracts with three of the four Bells.
Earthlink, for example, buys much of its network access through Covad.
The FCC order follows a Supreme Court ruling in June that upheld the commission's authority to free cable companies offering broadband from the same regulations that phone companies have faced.
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