March 15, 2002 -- The FCC approved a rule change reclassifying broadband via cable modem as an "information service," freeing the cable industry from regulations that typically are applied to "telecommunications services." The rule change is the first of several championed by FCC Chairman Michael Powell as a fast track to greater broadband deployment. Industry sources respond.

"Today's FCC decision is bad law and bad policy," said Dave Baker, vice president for law and public policy, at EarthLink, Inc. "The FCC fails to make the fundamental distinction between how you treat regulated networks like cable systems and unregulated information services like broadband Internet access that travel over those networks. Both statute and longstanding FCC precedent draw these distinctions, which the FCC chooses to ignore in today's decision."

"We share the FCC's desire to encourage broadband deployment," added Baker. "EarthLink is one of the nation's leading broadband ISPs. But broadband is already deployed to 85 percent of American homes. The challenge is not just providing more broadband connections, but giving consumers meaningful choices in their broadband providers over those connections. Encouraging broadband deployment does not mean sacrificing consumer choice. Unfortunately, today's FCC decision does just that."

"Today's action by the Federal Communications Commission reinforces the urgent need to remove the regulatory disparity that is denying American consumers the benefits of real competition in the broadband marketplace," said Patricia Hill-Ardoin, senior vice president-FCC, SBC Communications Inc. "By now indicating that both cable modem broadband service and DSL Internet access service are "information services" the Commission moves closer to putting all broadband services on the same regulatory footing and helping American consumers to realize the benefits of competition."

"It makes sense that similar services are classified and regulated in the same way," said Hill-Ardoin. "Whether it is DSL, cable modem, satellite or wireless technology, the end product is the same-broadband Internet access service. By adopting rules that apply equally to all broadband providers, the FCC has the opportunity to create a unified, nation-wide regulatory framework for this country's broadband market. Such a market-based approach not only best promotes competition, but ensures that American consumers and businesses directly benefit from that competition through more choices and better prices. We look forward to working with the Commission as it moves expeditiously to complete this and other key broadband proceedings."

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