A federal appeals court opened the door Monday to additional rules on high-speed Internet access over cable television lines, overturning a Federal Communications Commission decision that competitors say has kept them locked out of the cable systems.
In an opinion issued Monday, a three-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco said the FCC made a mistake when it classified cable Internet as just an "information service."
The judges, basing their ruling on a decision in an earlier case, said cable-based broadband also is a "telecommunications service," which under current law would make it subject to the steeper rules of the telephone industry.
The FCC voted in March 2002 to exempt cable companies from laws that force phone companies to open their lines to competition. At the time, officials said the move was necessary to spur more investment in high-speed Internet services.
That move left phone companies, which offer the competing digital subscriber line technology, at a disadvantage, critics said. They're subject to much more regulation, including much-debated rules requiring them to lease their infrastructure to competitors.
"I am disappointed that the court felt that it was bound by its prior decision and did not address the merits of the commission's classification," FCC Chairman Michael Powell said in a statement. He also said he will direct the FCC's lawyers to appeal.
News source: Washington Post - Court Overturns FCC Cable Modem Decision
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