US Internet Industry Association

For Immediate Release

Contact: David P. McClure USIIA
(703) 312-1111

USIIA Petitions FCC For Open Access
Leading Internet Trade Association Asks FCC to Open Cable Internet to Immediate Competition
(Arlington, VA, USA - July 7, 2000) - The US Internet Industry Association (USIIA) today filed a petition with the Federal Communications Commission (FCC) asking that cable Internet services be required to fulfill their obligations to open their networks to competition.
"The 9th US Circuit Court has declared cable Internet to be a telecommunications service," says USIIA chairman Dennis C. Hayes. "This ruling automatically subjects cable Internet services to laws that mandate open competition on their networks. The FCC's failure to act, and continuing efforts to postpone consideration of these issues, will result in substantial and irreparable harm to the Internet industry and to consumers. We are asking the FCC to do the job Congress gave it to do - open these services to competition, and do it now."
"The Telecommunications Act of 1996 didn't tell the FCC to sit around and watch the industry in the hopes that someday competition might appear," says Hayes. "It specifically required the FCC to create and maintain a competitive environment for telecommunications services. The Commission has failed to do this in the cable Internet industry, which has limited the growth opportunities for more than 8,000 Internet Service providers nationwide. We believe that the time has come for the FCC to stop protecting the narrow interests of cable operators and open their networks to the competition that consumers deserve."
At issue are efforts by operators of cable services to avoid competition on their networks. Cable operators first claimed that it was technically impossible for ISPs to interconnect with cable services, but this was shown to be untrue when GTE and others demonstrated a functional open cable system with room for hundreds of interconnected ISPs. More recently, the cable companies have claimed that they are exempt from requirements to open their networks to competition. But last month, a federal court ruled that cable Internet services are telecommunications services that must conform to the laws requiring competition.
"At the heart, this is an issue of consumer choice," says Hayes. "We are in the midst of a revolutionary transition from dial-up connections to the Internet to a new generation of broadband services, and we must make this transition as seamless as possible to the individuals and businesses moving to broadband. Cable Internet systems that are closed to competition would require subscribers to change their personal web sites, email addresses and other services in order to obtain faster Internet connections."
"In addition, closing the cable systems will lead to a restriction on what subscribers may see and do on the Internet. Dial-up connections to the Internet have always allowed consumers to choose what ISP they wish to use, and how much Internet they want to see. No one should be forced to accept limited content and disruption of services, and consumers should not have to sacrifice their freedom of choice, in order to move to broadband."
In its petition, the USIIA notes that FCC Chairman William Kennard has promised to look into the competitive issues of cable Internet - but has not set a date for any proceedings nor indicated when they might begin. The Association calls for immediate action on the Commission's part, and submits its views that:

The Federal Communications Commission has the authority to regulate cable Internet as a telecommunications service distinct from other cable services;
As a telecommunications service, cable Internet falls within the requirements of 47 U.S.C. S 251(a)(1), the law that mandates competition and interconnectivity for telecommunications services;
Telecommunications services must be treated equally under the law, regardless of the facilities used;
The Commission does not have the right to forbear on this issue.
Undue delays and other efforts to forbear and forestall action on these issues will result in substantially lessened competition in the market for residential broadband services.

USIIA has been a champion of cable Internet open access for the past two years, involving itself on behalf of its members and other ISPs. The association is a member of the OpenNet Coalition and iAdvance, the ad hoc organizations formed to fight for open access. USIIA has presented testimony on open access for municipal cable franchise hearings across the nation, as well as its testimony before Congress and the FCC.
About the USIIA
Formed in 1994, the US Internet Industry Association is a non-profit trade association that exists to foster and promote the growth of Internet businesses through legislative advocacy and professional services. The Association represents nearly 400 Internet companies and organizations engaged in Internet commerce, content and connectivity. Representing a broad cross-section of leading Internet companies in North America, USIIA is also affiliated with Internet associations throughout the world. The association is headquartered in Arlington, VA, and more information may be found at http://www.usiia.org.