FCC Won’t Review Broadband Net Service

Federal Communications Commission Chairman William Kennard, in a letter to state and local officials that advise the agency, again defended the FCC’s hands-off approach to regulating high-speed Internet services, also known as broadband, particularly those offered over cable lines. The 15-member advisory panel had recommended that the FCC open a formal proceeding on access to high-speed Internet service. Consumer groups and some Internet companies have voiced concern that cable companies will develop a monopoly in delivering fast Internet service over their wires, and they want government regulators to force the cable companies to open their networks to competitors. But the commission has declined to launch a formal review of access to high-speed Internet connections, saying it would slow the process of making those services available to consumers. Kennard said such an inquiry “would chill investment in cable modem service,” and the FCC has said that it’s too soon to determine if any player has an advantage in the market. Kennard said FCC policies have helped fuel activity among phone, satellite and wireless companies in the race to build their own high-speed connections. He said competitive pressures have accelerated the roll-out of digital subscriber line, or DSL, services by local phone companies and decreased costs. Kennard added that other companies are looking more seriously into how they might offer such high-speed connections using wireless or satellite technology.