Copyright 2002 Daily News, L.P.  
Daily News (New York)
March 18, 2002, Monday SPORTS FINAL EDITION
SECTION: BUSINESS; Pg. 38

LENGTH: 442 words

HEADLINE: CABLE/WEB POLICY FOES SET TO SUE

BYLINE: By NANCY DILLON DAILY NEWS BUSINESS WRITER

BODY:
Consumer groups and independent Internet Service Providers are up in arms over a recent decision that frees cable TV companies from having to share their pipelines with rivals.

The decision by the Federal Communications Commission states that cable TV-delivered Internet service differs from service delivered over telephone lines and isn't subject to the same open-access laws that force phone companies to carry competitive services.

Groups ranging from the Center for Digital Democracy to Media Access Project are suddenly pulling together a suit to block the controversial new policy.

"We will be taking this to court because the outcome of this question will determine the future shape of the Internet," said Andrew Schwartzman, of Media Access Project, a nonprofit public interest law firm.

If regulators don't force cable operators to open their broadband networks, cable companies may begin forming monopolies to control what parts of the Internet users can access and what users are allowed to download, Schwartzman argues.

"This is going to lead to a triple whammy against consumers, with less choice, higher prices and mischief on the part of cable operators," said Jeff Chester, executive director of the Center for Digital Democracy.

A lawsuit will be filed within two months.

Cable providers who stand to gain from the FCC decision include AT&T and Comcast - now seeking a merger - as well as Cox, Cablevision and others.

ISPs distressed by the ruling include NetZero, Juno Online and EarthLink, the largest independent service provider.

In their defense, cable companies said the ruling should help consumers since less regulation typically leads to faster network expansion. And if users aren't happy with the choices afforded by their cable operators, they can turn to alternative conduits, cable officials said.

"Given the vigorous competition between cable modem, digital subscriber line, and satellite-delivered broadband Internet services, a policy of regulatory restraint is particularly appropriate," said Robert Sachs, CEO of the National Cable & Telecommunications Association.

Cable operators also pointed to several recent examples of good-faith carriage agreements with unaffiliated ISPs.

For example, just last month Comcast struck a deal to make NetZero and Juno Online available to Comcast customers in Nashville and Indianapolis.

"While this progress is worth noting, I would also note that such agreements are quite new, are generally limited to the largest cable systems and are generally offered to only one or two unaffiliated ISPs," wrote FCC Commissioner Michael Copps in his dissenting opinion.

LOAD-DATE: March 18, 2002