U.S. Court of Appeals Rules on Cable Internet Services

The United States Court of Appeals for the Ninth Circuit issued a ruling on cable Internet services in a case concerning open access for independent ISPs. In March 2002, the FCC issued a Declaratory Ruling in which it concluded that "cable modem service, as it is currently offered, is properly classified as an interstate information service, not as a cable service, and that there is no separate offering of telecommunication service." The FCC ruling meant that cable operators would not be regulated as common carriers, but would instead be classified as providers of an information service under less stringent rules. Seven different petitions have since been filed to clarify the ruling. None of them challenged the conclusion that cable modem service is an information service, but each of them contends that the FCC should not have stopped there and should have extended its ruling into other areas.


The new ruling from United States Court of Appeals affirms in part, vacates in part and remands in part the FCC's Declaratory Ruling. The 39-page court ruling is online (Brand-X Internet Services vs. FCC).


FCC Chairman Michael Powell said the ruling "will throw a monkey wrench into the FCC's efforts to develop a vitally important national broadband policy." He has ordered the FCC's General Counsel to appeal the decision.
http://www.ce9.uscourts.gov