Comment Similar to DSL Service from US West (Score 4) 191
I understand the concerns about AOL trying to piggy-back on the efforts of Cable companies (i.e. getting access without the costs of rolling out the cable). However, I think it makes sense in light of the way telephone and DSL services are governed. In the Northwest, US West controls the lines and we pay US West for the lines. However, the ISP is open. When it came to DSL, those were the conditions established.
Cable has traditional been viewed as a local monopoly. The barriers for entry into the cable market were too high to promote competition; therefore, local governments negiotated contracts on behalf of their citzens with the cable companies. I believe it is entirely feasible that as a condition of that contract that the cable companies should have the same competitive situation as the phone company. Sell the line as a monopoly--compete on the access.
Of course, I have a larger stake in this argument than most. In Portland, where I live, the local government refused to approved the TCI-AT&T merger and refused to allow TCI to offer cable modems unless TCI offers alternatives for ISP selection. The local government argues that its contract with TCI stipulates that the utility commission approve changes in service and ownership. Hence, unless AT&T/TCI agrees to a DSL-like model where they compete on as service providers, they will not be able to sell cable modems. AT&T/TCI are suing the City of Portland and Multnomah County over this issue. For a brief article look at Oregonlive.com.
As many people have stated, the strength of the Senator's bill is in the details. However, the concept and logic are solid. Of course, even if the bill looks good, it doesn't mean that it won't get buried or that the House will approve a similar measure. Where is AT&T based? What are the chances that the Senator for AT&T state will filibuster and kill the bill?
Cable has traditional been viewed as a local monopoly. The barriers for entry into the cable market were too high to promote competition; therefore, local governments negiotated contracts on behalf of their citzens with the cable companies. I believe it is entirely feasible that as a condition of that contract that the cable companies should have the same competitive situation as the phone company. Sell the line as a monopoly--compete on the access.
Of course, I have a larger stake in this argument than most. In Portland, where I live, the local government refused to approved the TCI-AT&T merger and refused to allow TCI to offer cable modems unless TCI offers alternatives for ISP selection. The local government argues that its contract with TCI stipulates that the utility commission approve changes in service and ownership. Hence, unless AT&T/TCI agrees to a DSL-like model where they compete on as service providers, they will not be able to sell cable modems. AT&T/TCI are suing the City of Portland and Multnomah County over this issue. For a brief article look at Oregonlive.com.
As many people have stated, the strength of the Senator's bill is in the details. However, the concept and logic are solid. Of course, even if the bill looks good, it doesn't mean that it won't get buried or that the House will approve a similar measure. Where is AT&T based? What are the chances that the Senator for AT&T state will filibuster and kill the bill?
