When the FCC deregulated DSL back in 2005, they effectively killed line sharing, though telcos in some markets are still forced to lease lines to competitors at reduced rates. Verizon, AT&T and Qwest have been fighting to shed such requirements in a number of metro markets. The telcos argue those regions are now competitive and recently asked for "forbearance" from FCC rules.

Competitors argue that eliminating these rules will price them out of the market. That argument has never worked on an FCC that continues to be fiercely loyal to the major phone operators. So as you might expect, the FCC yesterday voted along partisan lines to give AT&T most of what they were looking for.

FCC Commissioner Robert McDowell, who recently penned an editorial in the Wall Street Journal saying the U.S. had no broadband problem, issued a prepared statement that said the commission "is striking a thoughtful balance between de-regulation and consumer protection." He goes on to insist that the FCC "has inadequate information to determine whether allegations that competition is scarce" have merit.