FCC says broadband cable is not telecom

Submitted by acohill on Tue, 08/31/2004 - 08:09

FCC Chairman Michael Powell is on the side of businesses and consumers when he declared:

“This is about ensuring that high-speed Internet connections aren’t treated like what they’re not: telephones. A successful appeal of this case would ultimately mean lower prices and better service for American consumers. Applying taxes, regulations and concepts from a century ago to today’s cutting-edge services will only stifle innovation and competition.”

Powell and the FCC have appealed a 9th Circuit Court's ruling to the Supreme Court. The Circuit Court previously ruled that cable modem service is a telecom service, which would subject new, cost-saving services like Voice over IP to century old regulation and taxes--an anti-business and anti-consumer stance that benefits only the incumbent telephone service providers.