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story category Brand X Battle
Cable definition combat
(old news - 01:51PM Monday Dec 08 2003)
tags: cable · Politics
The semantic battle over what to call cable broadband looms large on the industry horizon. Information Service? Telecommunications service? The final decision will be monumental.

Santa Monica based Brand X Internet decided to fight the FCC's 2002 classification of cable broadband as an "information service", which frees the industry from allowing open-access to competitors; among other regulatory hurdles long faced by the bells. Brand X was joined in their battle against the classification by the State of California and the Consumer Federation of America. Waiting in the wings are the bells, who wouldn't be horrified to see cable face regulation and equipment sharing obligations.

After one of our reports on the ruling triggered the now standard debate between cable industry incumbents and competitors, Jim Pickrell, president of Brand X Internet, arrived in our forums to share his thoughts on the ruling:

"The FCC itself is anti-competition. They tried to exempt the telephone companies and the cable companies from the competitive obligations of the Telecommunications act by declaring that broadband is not a telecommunications service. We disagree. We don't think the FCC should be able to change laws by redefining a word like telecommunications. If a law is going to be changed, that's a job for our elected officials, not bureaucrats. We appealed, and the courts agreed."

While Brand X stands alone on the cover-page of the appeal document itself, their victory brings them no shortage of friends among cable competitors looking to gain access to cable networks; and probably no shortage of enemies. The Ninth Circuit Court has no shortage of conservative critics either, and the Court's rulings are frequently overturned by the Supreme Court as this FindLaw.com analysis recently explored.

With so many opponents working diligently to squash the recent reversal, some believe optimism in regards to the decision is highly premature. Analysts charge the decision will be a mire of uncertainty at best, or squashed at worst; either outcome being primarily of benefit to the incumbents.

Pickrell says he has spent $50,000 on the lawsuit already, and likely faces considerably tougher costs as the ruling is appealed by the FCC. However he's optimistic that the ruling won't be overturned by the Supreme Court, and says he has little choice in whether to participate in the battle.

"It's easy for them because Michael Powell doesn't have to personally write a check for the legal bill - but I do. Unfortunately, the choice is to either pay it or close. If we allow him to shut off our access to cable and phone lines, then consumers lose choice, and we're out of business."

The chess pieces are certainly being moved. This week finds the cable industry requesting a rehearing en banc in the Brand X case (pdf link to petition from Jim Baller). Likewise the FCC made their move last week, filing their own petition requesting a new hearing on The Ninth Circuit Court's decision. The next six months could find the issue taken to the Supreme Court.

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  5. Scott Cleland: Google Using 21x The Bandwidth They Pay For
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  8. Tuesday Evening Links
Forums » Brand X Battle
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calvoiper

join:2003-03-31
Belvedere Tiburon, CA

Cable's own fault....

Once again, ATT cable started this with the lawsuit against the City of Portland, which forced the 9th Circuit's hand in this case.

Nothing as much fun as watching monopolists hung on their own petard!

Calvoiper
--
VoIP--the death knell of remaining voice monopolies!
hoyleysox

join:2003-11-07
Long Beach, CA

Re: Cable's own fault....

Cable isn't a monopoly. You can get your TV from analog broadcasts and satellite.

calvoiper

join:2003-03-31
Belvedere Tiburon, CA

Re: Cable's own fault....

Regardless of what cable is or isn't, it's largely run by monopolists, i.e., people who believe in and work to either achieve or maintain a monopoly.

My statement stands.

Calvoiper
--
VoIP--the death knell of remaining voice monopolies!
hottboiinnnc

join:2003-08-27
Fremont, OH

Cable is a monopoly. you have to watch their channels or use broadcast or satellite. Anything else you cant get shit. Satellite is cheap per month but the equipment and install costs are HIGH. And not everyone has line of sight to the southern sky and not everyone can have it where they live.

gmind16

Infotelecommuication service

inteller

@nuvox.n

dont want regulation, DO want cooperation

I think if the FCC used regulation as a threat to push more openness that would be the best scenario. I don't want to get taxed on a regulated cable system, but I would like to see cable companies partner up or offer ISP choices cause their existing services SUCK! If I could divert $10 of my cable bill to go towards MSN or Earthlink for ISP services instead of Cox I would LEAP at the opportunity.

calvoiper

join:2003-03-31
Belvedere Tiburon, CA

Re: dont want regulation, DO want cooperation

said by inteller:
I think if the FCC used regulation as a threat to push more openness that would be the best scenario.
...and I'm all for Motherhood, apple pie, and good sidewalks too. The problem is, the FCC hasn't really pushed openness in ANY network since Reed Hundt was forced out as Chairman (by President Clinton, who replaced him with Kennard--a near ultimate "don't rock any boats" guy.)

The FCC seems to use regulation now only to squelch competition against the established monopolies. Since they have embraced the "two competitors is good enough" approach (telco and cable) it's doubtful that this FCC would ever have expanded cellular competition beyond two players.

Remember how the cellular duopolies of the '80's and '90's kept prices high before PCS blew the cartel open? Yep, that sort of duopoly is the likely result of this FCC's approach to competition.

Calvoiper
--
VoIP--the death knell of remaining voice monopolies!
hoyleysox

join:2003-11-07
Long Beach, CA

Re: dont want regulation, DO want cooperation

Do you think DirecTV should have to share their network?

calvoiper

join:2003-03-31
Belvedere Tiburon, CA

Re: dont want regulation, DO want cooperation

I think the underlying spectrum should be shared.

If Direct TV had built its network by having a government subsidized monopoly for 90 years, had largely depreciated its network to where it's capital cost for ongoing operations was about zero, was in a position to strong-arm its vendors into supporting its legislative and regulatory agendas, AND HAD AGREED TO SHARE ITS NETWORK IN RETURN FOR BEING ALLOWED INTO LONG DISTANCE AS PART OF TA'96, then, yes, I would support having them share their network.

Since they built a network without a guaranteed rate-of-return (and actually fought monopolies, rather than being one) I think they are in a different position.

Calvoiper
--
VoIP--the death knell of remaining voice monopolies!

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

said by inteller See Profile:
I think if the FCC used regulation as a threat to push more openness that would be the best scenario. I don't want to get taxed on a regulated cable system, but I would like to see cable companies partner up or offer ISP choices cause their existing services SUCK! If I could divert $10 of my cable bill to go towards MSN or Earthlink for ISP services instead of Cox I would LEAP at the opportunity.

Cable internet service is already bad enough. do people really want to add that layer of fingerpointing that DSL currently has? (Anyone thats had an issue with their MSN isp over their Qwest line would know how frustrating the 'DSL/ISP pinball machine' can be)
--
You can never be too rich, too thin or have too much Bandwidth
hottboiinnnc

join:2003-08-27
Fremont, OH

Re: dont want regulation, DO want cooperation

Time Warner Cable- A Time Warner Company was forced nation wide by the FCC and the FTC to open up their high speed data networks. Then when they did Earthlink.net and AOL and other providers.

So the open ISP thing is a bad thing cause if you have problems you are bounced around between Time Warner and your provider. Then if you have earthlink.net like me they wanna send you to the National Call Center for RoadRunner in CANADA! not to your cable office's call center!

And it gets to be a pain! I hate the pinball machine thing TWC has set up for their high speed customers that chose someone else besides RoadRunner.

ronpin
Imagine Reality

join:2002-12-06
Nirvana
·AT&T Southwest


2 edits

Shortsighted

If Pickrell would take all the money he's spending to avoid building his own fiber infrastructure -- and just lay some fiber -- he could obviate both the Cable and Telco copper plants in his service area. I don't believe in short-sighted ways to save money. In the long run we'll all be better-off if providers are forced to build their own infrastructure. What's more, why will anyone improve their current infrastrure if they have to give away business to competitors. There are better ways to enhance competition than the socialistic way of forced sharing of infrastructure ('wonder if Pickrell would mind sharing his new fiber with the Cable company?)

calvoiper

join:2003-03-31
Belvedere Tiburon, CA

Re: Shortsighted

Well, his $50,000 wouldn't even buy a block of buried conduit and fiber. I don't know who might get service within a block of whatever collo hotel he uses now, but it wouldn't be me or you, I'm sure.

Calvoiper
--
VoIP--the death knell of remaining voice monopolies!

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast

said by ronpin See Profile:
There are better ways to enhance competition than the socialistic way of forced sharing of infrastructure
Amen to that. My cable bill is high enough. I don't want to see it raised to pay for someone else's unworkable business model.
--
The tobacco industry is more respectable than the telemarketing industry.

woody7
Premium
join:2000-10-13
Torrance, CA
·EarthLink
·DSL EXTREME

Hmmmmmmmmmmmmm...................

If the law says you have to share................why not share..........this isn't about sharing per say.....its about not being classified as a telecom service........its about greed....noncompetiveness.............unregulation........and um..........whining greed..........
--
Bloome
joebear29

join:2003-07-20
Alabaster, AL

Re: Hmmmmmmmmmmmmm...................

What are you trying to say?

woody7
Premium
join:2000-10-13
Torrance, CA
·EarthLink
·DSL EXTREME


1 edit

Re: Hmmmmmmmmmmmmm...................

If they are classified as an "information service" they keep their lines to themselves, less or no regulation, competitive edge over the Telcos..oh never mind....and besides, depending on what city you live in you don't have a choice over cable providers, even if a competing cable company decided/wanted to start up in a city already with cable, it would never be allowed to happen...............
--
Bloome

calvoiper

join:2003-03-31
Belvedere Tiburon, CA

Re: Hmmmmmmmmmmmmm...................

...too much 420?

Calvoiper
dyehard

join:2002-05-12
Phoenixville, PA

I want to be able to choose

I want to be able to choose what cable co to use
lesopp

join:2001-06-27
Land O Lakes, FL

Re: I want to be able to choose

Me too, but that just isn't likely. Until the local loop providers are forced to be infrastructure only providers, there will never be a real choice.
hoyleysox

join:2003-11-07
Long Beach, CA
What cable company would you choose?

Maybe everyone should decide which cable company is best and have that company run the entire network.
tonekilla
Pipe Dreams
Premium
join:2003-07-26
Gunnison, MS
clubs:

1 edit

Re: I want to be able to choose

very bad idea. I can see the constant stream of bullshit coming from that overgrown monopoly now. whew. How could you wish for anything like that?
nctimaster

join:2002-11-28
Charleston, WV

Re: I want to be able to choose

In the same you cant choose your local phone service only your long distance in essence your local cable is the same. land line or cell phone? cable or direct tv?????? and yes anyone can build their own cable in any town if they want the same with telephone its just to expensive to do that only harrase, the already existing company that has more money invested. than the cheap bastards that are wasting their money fighting wanting a piece of the pie for NOTHING!
Forums » Brand X Battle


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