Fcc Acts to Speed Broadband Access ; but Critics Contend That Rule Change Hurts Smaller Companies
Posted on: Saturday, 16 October 2004, 06:00 CDT
Federal regulators approved new rules yesterday aimed at making high-speed Internet available to more Americans. Critics contended the action will hinder competition in broadband services and keep prices high.
The proposal lets the major regional phone companies build fiber- optic networks to within 500 feet of a customer's home without requiring the companies to share their networks with competitors.
Separately, the Federal Communications Commission voted to set ground rules for a different type of high-speed Internet access: broadband over power lines, known as BPL.
Currently, the former Baby Bell companies do not have to lease their networks for fiber installed directly to the home. The new rule extends that regulation to within 500 feet of a residence.
BellSouth requested the change so it could build networks to just outside a customer's home and reach more homes at once, rather than having to lay down fiber to each household. In a statement, the company said the decision would bring broadband service to more consumers, more quickly.
Three members of the FCC approved the plan in whole, while a fourth agreed to some parts and objected to others. Commissioner Michael Copps, a Democrat, voted against the rules.
Copps said loosening the rules for the major phone companies keeps smaller players from getting into the market.
In the other case, broadband over power lines, the technology is still in its infancy, with a handful of companies offering the service to fewer than 5,000 customers nationwide. The transmissions, however, can interfere with ham-radio operators.
The agency said its rules would limit interference by BPL providers by using devices that would skip frequencies the amateur radio operators use.
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