Comcast scored a victory Monday when the U.S. Supreme Court ruled that cable companies do not have to share their lines with rival Internet providers.
Denver-based Qwest also applauded the ruling because the Federal Communications Commission is now expected to lift regulations on phone companies that also compete in the $16 billion high-speed Internet industry.
Consumer advocates and small Internet service providers, however, warn the deregulation wave will lead to a broadband duopoly that could limit Internet options.
“If the phone companies are also exempted from sharing their networks, you will end up with an Internet service duopoly – either the phone or the cable company,” predicted Jawaid Bayzar, president of Denver-based foreThought.net, which pays Qwest to sell phone and high-speed Internet over Qwest’s network. “There will be less competition.”
The other side of the argument is that cable and phone companies will invest more in networks if they don’t have to share them with competitors.
“When telecommunications companies can be assured that they will control access to their own networks and are able to set prices accordingly, we can expect to see a significant increase in funds invested in broadband employment,” said Braden Cox of the Washington-based Competitive Enterprise Institute.
FCC Chairman Kevin Martin indicated Monday he would seek to deregulate high-speed Internet for phone companies. “We can now move forward quickly to finalize regulations that will spur the deployment of broadband services for all Americans,” he said.
Steve Davis, Qwest’s senior vice president for public policy, said regulations hamper the Denver-based phone company’s efforts to expand its digital-subscriber-line customer base. Qwest currently has to give 60 days notice to competitors before rolling out high-speed DSL Internet service to a new neighborhood.
Staff writer Ross Wehner can be reached at 303-820-1503 or rwehner@denverpost.com.
