Sunday, August 29, 2004

FCC to Appeal Brand X Cable Modem Ruling

The FCC filed papers to appeal the "Brand X" cable modem case to the Supreme Court. A Supreme Court ruling is consider critical because the U.S. Ninth Circuit Court of Appeals had overturned the FCC's classification of cable modem service as an "information service."



FCC Chairman Michael K. Powell said: "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."http://www.fcc.gov

  • The U.S. Ninth Circuit Court of Appeals declined to review a lower court's ruling that had overturned the FCC's classification of cable modem service as an "information service." The case originally arose regarding whether local municipalities could require cable operators to open their networks to other ISPs.


  • In October 2003, the U.S. Ninth Circuit Court vacated the FCC declaratory ruling that had classified cable modem service as an "information service without a separate offering of a telecommunications service." The FCC promptly appealed the decision. The Ninth Circuit Court of Appeals has now declined to review the lower court's ruling.


  • The FCC's declaratory ruling, which was issued 15-March-2002, classified cable modem service as an “information service�? rather than a “cable service.�? As an interstate information service, cable modem service would therefore be subject to FCC jurisdiction rather than state or local rules.