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U.S. Supreme Court Rules in Favor of Cable Companies

shawncruiksh   on 27 June 2005 - 22:20 · 38 comments & 7248 views

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In their second major ruling on Monday, the U.S. Supreme Court reversed a federal court verdict that would have required cable companies to open up their networks to third party Internet service providers. The decision will severely limit broadband operations for competing ISPs such as Brand X and EarthLink.

“The Bush administration has made it clear that they are hostile toward small, independent service providers like us. And we think that is a big disaster for consumers, and a huge win for the monopolistic phone and cable companies, which spend millions of dollars on lobbying efforts,” said Jim Tickrell, president of Brand X Internet.

Under The Communications Act of 1934, cable companies are defined as "information services", allowing them to restrict access to cable lines. This is in contrast to telephone companies, which – under the bill – are required to share their lines with competitors. Companies like Comcast and Time Warner argued that opening up the market to further competition would damage their business and lead to a decline in the amount of money they invested in their networks.

Along with the ruling, the court also reinforced the FCC’s ability to make critical decisions when it comes to interpreting the nuances of the Communications Act. Because the case was so technically involved, the court said it was reasonable to defer to the expertise of the FCC.

News source: ZDNet


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(1 reply) #1 finalcoolman on 27 Jun 2005 - 22:35
Good. I don't understand this. What right does another company have to use your infrastructure? That's like a small company should be able to use a big company's factory which the big company paid to build and maintain.
#1.1 parithon on 27 Jun 2005 - 22:58
How would you get multiple infrastructures, for say cable, to an individuals home, business, etc. without having multiple lines without sharing somewhere? Another option would be for the cable company to open its lines on a lease bases, but everybody knows this would be an unfair advantage.
(9 replies) #2 Gowcra on 27 Jun 2005 - 22:39
Bush: I hate you. I'm sorry, but this is bush putting money into the big companies. "corporate america" is a VERY correct phrase
#2.1 JK1150 on 27 Jun 2005 - 22:55
[sarcasm]Yes, Bush should pave the way for "Brand X Internet" to get to the top.[/sarcasm]
This guys people a choice, and the market competition. This is good news.
#2.2 parithon on 27 Jun 2005 - 23:03
I'm assumeing you meant to say "This gives people a choice, and market competition"... I don't know about you, but I only have one choice for a cable company... Comcast.
#2.3 betasp on 27 Jun 2005 - 23:22
... and this is Comcasts fault. No, it is the fault of other cable operators. If your area could support 2 carriers, you would have it.
#2.4 parithon on 27 Jun 2005 - 23:32
I didn't say its Comcast's fault, I was simply replying to the fact that the above ruling doesn't secure the possibility of competition.
#2.5 Vlad on 28 Jun 2005 - 04:08
God. Do people even read the Constitution anymore? Since you lack even a basic understanding as to the function of the branches of the government, let me review:

Bush has absolutely nothing to do with this. The President, be he republican or democrat, cannot simply create and pass laws or make judicial decisions.

Excutive != Legislature != Judicial

If you have a problem with this, instead of blaming Bush, speak to *YOUR CONGRESSMEN*. It's THEIR job to pass laws. More on track with the article, if you owned a business in direct competition with mine and I demanded you give me one of your buildings so that I might better compete, wouldn't you laugh in my face? Whatever happened to common sense?
#2.6 sphbecker on 28 Jun 2005 - 14:09
QUOTE
The Bush administration has made it clear that they are hostile toward small, independent service providers like us.


What is the beef with Bush??? This was the supreme court's ruling, not a product of the Bush administration. And as we all know, Bush as basically no influence over the supreme court seeing as how he has not successfully nominated a single justice.

If you like Bush or not is a moot point in this case.

Last edited by 74534 on 28 Jun 2005 - 14:25
#2.7 YaddaMe on 28 Jun 2005 - 15:43
QUOTE
Bush has absolutely nothing to do with this. The President, be he republican or democrat, cannot simply create and pass laws or make judicial decisions.

While I do not understand why Jim Tickrell pointed the finger solely at Bush in his statement above, to imply that the Supreme Court is non-partisan & is not influenced by their ploicital party, is absurd.
True, the President cannot make judicial decsions, but when the opportunity presents itself, the President can, and usually does, appoint someone who is expected to rule in favor of the views that align with the President's party.

All to often Supreme Court rulings are influencend by policital party views. Please don't get me wrong, this isn't an attack on conservatives... a Supreme Court bench led by Democrats woulds be guilty of eactly the same thing. Shouldn't the Supreme Court be as non-partisan as possible? Interchange the word "Bush" with "conservative" and the statement makes perfect sense (ie. this ruling was 100% in line with political party views).

QUOTE
Excutive != Legislature != Judicial

On paper, yes... but in reality, when one group holds the power in each branch, the lines becomes increasingly blurred.

Last edited by 10547 on 28 Jun 2005 - 16:13
#2.8 sphbecker on 28 Jun 2005 - 20:12
YaddaMe, I'm not sure what point you are getting at. Bush has not successfully appointed ANYONE to the Supreme Court, so saying that the Supreme Court is conservative when Clinton was the last person to make a change to its membership is a little silly.

I do agree that those who sit of the Supreme Court put their own views into their rulings far too much. The Supreme Court's only job is to interpret existing laws and the constitution. It is not their job to effect policy based on the political climate or what they think is best for the country.

A Supreme Court Justice is really nothing but a referee.
#2.9 YaddaMe on 29 Jun 2005 - 08:45
QUOTE
YaddaMe, I'm not sure what point you are getting at. Bush has not successfully appointed ANYONE to the Supreme Court, so saying that the Supreme Court is conservative when Clinton was the last person to make a change to its membership is a little silly.

Why is that silly? Yes, Clinton appointed the last two justices, and they were both Democrats. However, the other 7 members of the Supreme Court are Republican... I'd say that qualifies the word "conservative" as a valid description.

Anywho, that wasn't my point. The first point was what you agree with, that the Supreme Count isn't as unbiased as it should be. The second being that Jim Tickrell's comments towards Bush are not to be taken litterally, but they are more aimed at entire conservative-controled govt.
#3 vetMr magoo on 27 Jun 2005 - 22:40
In the UK at least (I think it is a similar situation in the US), the main telecoms infrastructure was run by one big company (BT). I think you had similar 'baby bell' companies in the states in a similar, monopolistic competition. It became clear in recent years that new companies were prevented from entering the market and competing because of the high costs of entry, and the fact that existing operators that owned big, cross country networks could just refuse them access. The comparison of saying, hey, why can't i use the big guys factory, is flawed. It's on a much bigger scale, with economic power allowing companies to decide the competition on their terms.

As such, if the old monopolies were forced to open up their networks, competition would be stimulated allowing for more investment, and a better deal for the consumer. That's the idea at least - in the UK, it has worked very well. We've got lots of competition in the ADSL market, BT has cleaned up its act, good job. We've got cheaper internet access, faster internet access - companies are forced to compete and do one better to keep on getting new customers - in doing so, however, we all get a good deal. It would seem like a bit of a raw deal for people in the states today, on this issue, and the Grokster.

Whilst the Grokster issue has nothing to do with monopolies, this is a good example of why they aren't really a very good idea.

Last edited by 1409 on 27 Jun 2005 - 22:46
#4 GUNNER on 27 Jun 2005 - 23:19
This is why I will be going to Satellite, and if the Internet through power lines takes off I will go that route. In two years my cable has gone up over $20.00 a month (50 for the standard and 50 for Road Runner), and the good channels have moved to "Digital". If I want a "Box" to get those channels I will go with Satellite. There used to be 3 cable providers In this area about 13 yrs ago now there is one cable and one over the air cable (antenna based) the antenna based is so limited in area service that no one wants it.
#5 toadeater on 27 Jun 2005 - 23:50
Monopolistic corporate crooks on a rampage.
(4 replies) #6 jb23fan on 28 Jun 2005 - 00:22
Are you people stupid, this is no different than a 5 yr old being pissed off that he cant play with big brothers toy. They had the money to build and develop the networks, they have the right to decide who uses it. END OF STORY!!!
#6.1 finalcoolman on 28 Jun 2005 - 00:31
Exactly. If you build your own house (ie. pay for it), how nice would it be for the governement to FORCE you to share your house with a stranger?
#6.2 shawncruiksh on 28 Jun 2005 - 00:37
Yeah - if you built a house large enough to cover the whole United States. Currently, cable companies own their lines - allowing them to charge outrageous prices for the use of their cable...Don't you think that's a little unfair? Because they are the first...they are now the ONLY one.
#6.3 jb23fan on 28 Jun 2005 - 00:55
If I had the right to build a house that covered the US, then thats my privelage, and if I own the land, its what I CHOOSE to do with it. Same concept. Blowing it up in size doesnt change the situation.
#6.4 fpd on 29 Jun 2005 - 11:12
You should check out your antitrust laws and think about that again.
#7 sodapop on 28 Jun 2005 - 00:33
Our small town could support 3 cable/internet companies but nooooo, these wise asses over here have the place locked down so tight that they charge two arms just for a slow ass dsl line. There is no other choice.

One good thing is that customer service is awesome. and I hardly ever experience any outages. I guess the high prices don't bother me too much since it's all good.
#8 Divide Overflow on 28 Jun 2005 - 01:12
Perhaps my cableco is some strange entity, but Bright House Networks is comprised of a network of former TWC service areas (originally owned by Advance Newhouse, sold to TWC, and bought back by Advance Newhouse to form BHN), and the cable internet is seperate from the actual ISP. We get cable service, then choose from AOL, Earthlink, RoadRunner, or a small ISP called Internet Junction. RR is not actually a part of the cable service, they only provide mail servers, newsgroup access, etc. There is no way NOT to get an ISP, but cable and an ISP like Earthlink, RR, or IJ is all 49.95. AOL is more expensive, but thats the same no matter where you go, because they offer all of the additional crap that they do.

For those of you out there damning the "Man" because he makes you use a cable box to get all the good channels, what do you need for Satellite? Oh yeah! A Box, and an oversized frizbee on the side of your house, and a contract! Oh yeah, and the box I get for 9 bucks a month? If it dies it's replaced, and I don't have to buy it. Your box? If it becomes obsolete or bites the dust, oh well, you've got to buy a new box.

Did we forget the FCC mandate that all OTA programming needs to be digital? What do you think people will complain about when they can get clear digital signals OTA, not to mention you have the SatelliteCos claiming all of their programming is digital, though the content is simply digitally encoded analog programming? People will ask, "Why get cable when Satellite and OTA programming looks better?" CableCos are simply trying to compete. Welcome to capitalism.
(5 replies) #9 Troll on 28 Jun 2005 - 01:14
Blaming the Bush Administration for this? LOL

The SUPREME COURT ruled on this decision. Last time I checked, President Bush didn't appoint any of the judges there.

I agree completely with this decision. If a company purchases the lines, they don't *have* to let someone else come in and make money off it. In fact, I feel this will *increase* competition in the city I live in. We don't even have Comcast! Only Bright House's Road Runner. If another company wants to come in, they can put up their own lines by taking the initial investment to do so, then grab subscribers away. In the past, other companies tried to come in and were refused - A smart business decision by Bright House (at the time Time Warner) as my city is around 100,000+ in size.

Some of the people who oppose this might want to look into the issue a bit deeper than just taking the quotes from the "losers" in this case at face value.
#9.1 DELTA75329 on 28 Jun 2005 - 02:28
Couldn't have stated this better myself. Amen.
#9.2 sphbecker on 28 Jun 2005 - 14:15
Yeah, some people don't seem to understand the constitution at all. I guess they figure that because Bush is the most powerful politician in the US that he is directly responsible for everything any level of government does.
#9.3 YaddaMe on 28 Jun 2005 - 16:00
QUOTE
Blaming the Bush Administration for this? LOL

The SUPREME COURT ruled on this decision. Last time I checked, President Bush didn't appoint any of the judges there.
-------------
I guess they figure that because Bush is the most powerful politician in the US that he is directly responsible for everything any level of government does.


IMHO, saying "Bush", "The Bush Administration", "Conservative", or "Republican", can be interchanged in comments like the above... it's just slightly more powerful of a statement if directed at the leader.

This ruling is no doubt aligned with the conservative views. To blame Bush as the sole entitiy responsible for this ruling is silly, but then the ruling is aligned with his & his party's views.

Had Democrats held the majority of the bench, there is a solid chance that the ruling would have been just the oposite, and then the cable co's would be bitching about Clinton/Democrats/liberals.

We need a non-partisan court, or as close to one as possible... of which we are not even remotely close to having.

Last edited by 10547 on 28 Jun 2005 - 16:15
#9.4 sphbecker on 28 Jun 2005 - 20:13
Do you understand how the Supreme Court appointments work??? Bush has not appointed anyone to it (yet). The members of the supreme court are all the same ones from when Clinton was in office.
#9.5 Troll on 29 Jun 2005 - 01:15
Straight from Wikipedia: http://en.wikipedia.org/wiki/Supreme_Court...e_United_States

Justices Rehnquist, Scalia, and Thomas are generally considered to be the conservative wing of the court. Justices Souter, Breyer, Ginsburg, and Stevens are generally considered to the liberal wing. Justices Kennedy and O'Connor are typically seen as moderates, and hence are the swing votes who often determine the outcome of close cases.

3 conservatives, 4 liberals, 2 moderates...

Seems pretty even to me. Whats funny is that John Paul Stevens is the most liberal and was appointed by Gerald Ford
#10 megamanXplosion on 28 Jun 2005 - 02:48
I agree with the ruling completely. Think about it, if the small competitors didn't have to build their own infrastructure then they would be able to drastically decrease the price of the service. Sounds good, right? Wrong. If the small competitors were to do this then the larger competitors would need to slow the expansion of the infrastructure to lower their prices and stay in business. Eventually, the larger companies could die and this would also mean the end of expansion. Thus, the smaller competitors would need to raise their prices to begin expanded again and they become the larger company. Then we'll have other small competitors arguing about fair usage of the infrastructures, then expansion dies, etc. Rinse and repeat.

What BrandX is proposing is idiotic. Continuing growth of Internet access would slow to a crawl, the whole business of internetworking would be in jeopardy (goodbye cisco?), many people would lose their jobs, etc. for no benefit other than put money in BrandX's pocket so they can become a large competitor on unfair terms. This would be as devastating on the American economy as the "dot com bubble" popping.

To recap, I agree completely with the ruling.
#11 TheSarge on 28 Jun 2005 - 05:03
So, cable companies have a free hand, and file traders get shut down.
Chalk up another win for Big Buisness.
(3 replies) #12 pongo on 28 Jun 2005 - 05:12
Sadly its the other way around for me here. The small company is the backwards one and I was hoping that forcing the only broadband company in town to open its lines would allow Comcast, which is offering service 15 min north of here, to open service in my state.

I am right near a state line and the company here is charging $40 a month for 1.5mbps/128k and Comcast is up to 4or5mbps/??up for about the same. How is this fair? There isn’t any competition here and I'm suffering from a non evolving network.

In the end I agree with the ruling but in my case where the small company is the monopoly and is charging for service people had 4-5 years ago ... never upgrading ... is getting annoying.
#12.1 metro on 28 Jun 2005 - 05:26
It is like this in my hometown. There is a grassroots cable company and they are the only player in the area. A few hours to the north and also to the west Comcast reigns supreme and are the only cable provider. If you go south a few hours from my hometown, Charter is present. I am a little biased because I work for Comcast, but I wanted nothing more badly than for Comcast to buy out the small company in my hometown or at least expand there to offer competition because of the rediculous pricing for the tiers of internet. The funny thing is that this small cable company was the first in the state of Oregon to offer residential cable internet, and totally jack people around on speed and pricing because there is no one else there to offer them a wakeup call.

For those who claim satellite is the way to go, we'll see just how reliable your internet or television service is when the weather turns crappy. I loved Comcast before I even worked for them. They have always treated me right, and still continue to do so as an employee.
#12.2 ZeroBS on 28 Jun 2005 - 09:29
If Comcast is so nice why don't they make a deal with that company to share each others lines? There is no law saying they can't share.

But Comcast is no better then any other cable company... money grubbing monopolies
#12.3 metro on 29 Jun 2005 - 01:13
Would you be willing to share an infastructure with a company that you had paid millions of dollars to build and continue to pay for to maintain? I sure wouldn't, and would do what I could to build my own share in the city and introduce competition to gain more subscribers.

Business is not meant to be nice and share like kids are told to do in kindergarten. Businesses are out to make money, and unless a profit can be made, don't expect anyone to share what they don't have to.

I would bet that if you were a wealthy shareholder or even a top exec for one of those companies you would be just as greedy. People can state that money will never change or corrupt them, but it isn't true. It will change you regardless, but may corrupt you if you let it.
#13 yizuman on 28 Jun 2005 - 06:40
QUOTE
In their second major ruling on Monday, the U.S. Supreme Court reversed a federal court verdict that would have required cable companies to open up their networks to third party Internet service providers. The decision will severely limit broadband operations for competing ISPs such as Brand X and EarthLink.


Companies like Earthlink and AOL (I have no idea what the hell Brand X is, never heard of'em) are third party ISPs, always has been, always will be.

In fact, companies like AOL is not a ISP, but rather a Commercial Online Service.

The reason I say that is because back then in the early 90s before the internet became extremely popular, there was AOL. At the time AOL had no internet service, at least it wasn't hooked to the internet, just yet.

But AOL wasn't the only big game back then, there was Prodigy, Compuserve and other services like them. There was also alot of BBS systems where people can dial into another computer , download files (like Doom WADs, alot of BBS services had alot of Doom fans sharing their maps and mods), go to chat rooms, etc. Many BBS operators also had subscription plans that allows them access to, *ahem* porn.

Anyway, AOL used alot of (and still uses alot of) crappy softwares, horrible front ends and they censor alot of their paying customers, they even changed the names of Usenet groups because some groups were very anti-AOL, (alt.aol.sucks) they changed it to something that sounded more politically correct. (By the way, Steve Case is a liberal democrat. Surprise Surprise!)

AOL wasn't even near in quality in terms as a internet service. When they did hook up to the backbone of the Internet, they used softwares attached to it that made the service, even for dialup, horribily slow. It still slow even when they started their crappy company.

QUOTE
"The Bush administration has made it clear that they are hostile toward small, independent service providers like us. And we think that is a big disaster for consumers, and a huge win for the monopolistic phone and cable companies, which spend millions of dollars on lobbying efforts,” said Jim Tickrell, president of Brand X Internet.


I am afraid he may be correct. This also gives big shots out there more power to raise prices on their services which would leave only the middle class and rich class being able to afford it and the poor people will get disconnected because there's no cheap broadband options for them to choose from.

QUOTE
Under The Communications Act of 1934, cable companies are defined as "information services", allowing them to restrict access to cable lines. This is in contrast to telephone companies, which – under the bill – are required to share their lines with competitors. Companies like Comcast and Time Warner argued that opening up the market to further competition would damage their business and lead to a decline in the amount of money they invested in their networks.


That was 1934, it's an old and outdated law. It needs to be changed. Technology changes every year and laws needs to be updated to reflect that change.

QUOTE
Along with the ruling, the court also reinforced the FCC’s ability to make critical decisions when it comes to interpreting the nuances of the Communications Act. Because the case was so technically involved, the court said it was reasonable to defer to the expertise of the FCC.


To interprete that, there's alot of old farts sitting in benches that have no clue how to turn on a computer, much less operate it. These so called Judges are so outdated that they need to be replaced with younger generation of people who are technically savvy. Just replace Judges that handles electronic laws with younger judges (with a HIGH IQ please, mind you. Preferably with an IQ of 140 and up) and the problem is just almost solved.

(1 reply) #14 Sub on 28 Jun 2005 - 12:03
Wow its glad to know that if my company spends billions of dollars running fiber optic, that anyone cant just sue and use it..

Makes perfect sense... If you cant afford to run wire to homes, then you shouldnt be able to use your competitors..
#14.1 parithon on 28 Jun 2005 - 15:45
which is why some cry foul when the telephone companys must share?
#15 smeggers on 29 Jun 2005 - 04:56
QUOTE
For those who claim satellite is the way to go, we'll see just how reliable your internet or television service is when the weather turns crappy. I loved Comcast before I even worked for them. They have always treated me right, and still continue to do so as an employee


What a joke! We rarely loose reception, and the only reason we ever do is that the deer rub thier antlers on the 4x4 we have the dish mounted on and move it significantly. Storms so rarely bother it that it isn't worth mentioning. All it does is flicker if its REALLY bad. You dont know what your talking about.

Competition is always a good thing! Cable doesn't find my area lucrative enough for them to run more miles of cable. The only option other than incredibly bad reception from a tri-pod antenna is a sattelite dish. Sadly in my area of the country there is only one provider for sattelite internet, with an up front fee of $600.00 and 63.00 a month. You know, if we didn't have to eat, and do all those other living expense things we might be able to swing it. If this (Direct TV)company had any competition, everyone would have a chance. Thier greed is stupid and a bad business move.................sell to the masses, not the privelidged few. Throughout history, those were the most sucsessful businessmen. Sam Walton, Woolworth, McDonalds, Disney.

Last edited by 49488 on 30 Jun 2005 - 07:05

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