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Court rebuffs cable industry in broadband battle

By Christopher Stern
The Washington Post

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In a huge setback for the cable industry, a federal court yesterday refused to reconsider an earlier decision that effectively requires cable companies to open their high-speed Internet service to rivals.

Currently, the majority of the 15 million homes that subscribe to a high-speed Internet service over cable lines have no choice when it comes to a service provider.

The original case was brought by small Internet service providers that claimed they were unfairly being blocked from reaching the millions of cable subscribers.

Consumer groups declared victory after the 9th U.S. Circuit Court of Appeals in San Francisco said it would not reconsider its October ruling.

"This creates a true opportunity for consumers to pick and choose from a broad array of cable Internet services," said Gene Kimmelman, head of Consumer's Union's office in Washington.

The National Cable and Telecommunications Association, a trade group that represents large cable companies, said yesterday it was disappointed and called on the Federal Communications Commission to seek an appeal to the Supreme Court.

FCC Chairman Michael Powell, who supported a more deregulatory approach to cable, also expressed disappointment in a statement released yesterday.

However, Powell did not say whether he would support an appeal to the Supreme Court.

Another commissioner, however, applauded the appeals court's decision to stand by its earlier ruling.
 
"This is a good day for consumers and Internet entrepreneurs," Commissioner Michael Copps said in a statement. "I look forward to the start of a fresh dialogue on broadband service at the FCC."

Dan Brenner, chief counsel of the National Cable & Telecommunications Association, said the industry trade group would urge the FCC to appeal.

"We believe that if and when the 9th Circuit's decision is given a full substantive review by the Supreme Court, it will be reversed," he said in a statement.

Material from The Associated Press is included in this report.

Copyright © 2004 The Seattle Times Company