COMPETITION
Antitrust Study Sides With News Corp. In Battle With EchoStar Over
DirecTV (WSJ)
Texas firm says AOL snubs small ISPs (CNET)
BROADBAND
High-Speed Internet Connections Grew 63% During The 2nd Half (WSJ)
FCC Issues Inquiry On Advanced Telecommunications Capability (FCC)
COMPETITION
ANTITRUST STUDY SIDES WITH NEWS CORP. IN BATTLE WITH ECHOSTAR OVER DIRECTV
Issue: Antitrust
A new study finds that a merger of DirecTV with EchoStar Communications
satellite television service would hurt some consumers. The analysis by
Albert Foer, president of the American Antitrust Institute, based in
Washington, D.C., concludes that the proposed combination of
satellite-broadcasters DirecTV with EchoStar's DISH network would place
"between 3.4% and 19% of the population under monopoly conditions." DirecTV
and EchoStar are the nation's top two satellite-to-home providers,
controlling roughly 90% of that market. The analysis concludes that in those
largely rural areas, there would be only one "provider of TV multichannel
programming." The findings of this report challenge that of an earlier study
by Donald Russell, a former Clinton Administration antitrust official, which
suggested that a successful bid by EchoStar for Hughes would help consumers
and increase competition because a single satellite-broadcasting company
would be a more effective competition against cable-television systems
already in place.
[SOURCE: Wall Street Journal, AUTHOR: Andy Pasztor]
(http://interactive.wsj.com/articles/SB997387318963052050.htm)
(requires subscription)
BABY BELL BREAKUP MOVEMENT GAINS GROUND
Issue: Competition
The Baby Bell local phone companies are increasingly criticized for alleged
abuse of the local phone markets. The idea of a Bell breakup has become a
rallying point for rivals and critics of the giants, who allege that Verizon
Communications, SBC Communications, BellSouth and Qwest Communications
International have abused their control of the local telephone networks. A
bill introduced by Reps. Reps. Billy Tauzin, (R-La.) and John Dingell
(D-Mich.) in Congress last week added fuel to the fire. While few expect the
bill to actually pass, its introduction is shining a light on the ongoing
criticism of some of the most powerful players in the communications
business. "The reality is that (the big local phone companies) still have a
monopoly on the wire into the home," said Gene Kimmelman, chief
telecommunications analyst for the Consumers Union. Consumer groups have
lobbied for more competition at the local level. But the breakup movement is
not a grassroots phenomenon: in the states where the issue has come up in
the past two years, AT&T has helped spearhead and fund the drive. The major
difference now is that the movement is gaining more political momentum and
credibility. Much of the political movement now is, in effect, based on
recognition that the Telecommunications Act of 1996 has failed in part.
Maureen Flood, vice president of the Competitive Telecommunications
Association, a lobbying group that represents AT&T and alternative local
phone companies said "We're taking this very seriously. There are a number
of architects of the Telecommunications Act who are really frustrated" with
the progress of local phone network competition.
[SOURCE: CNET News.com, AUTHOR: John Borland]
(http://news.cnet.com/news/0-1004-200-6818658.html?tag=tp_pr)
TEXAS FIRM SAYS AOL SNUBS SMALL ISPs
Issue: Antitrust
Texas.net, an Austin-based Internet service provider on Thursday charged AOL
Time Warner with locking out independent providers from its high-speed
network, an act that would violate an agreement with the U.S. government. As
a condition of the merger approval for America Online and Time Warner was
their agreeing to allow rival Internet service providers access to their
cable lines. In the complaint filed with FCC Texas.net said AOL had refused
to negotiate terms of access to its high-speed cable-modem network, while at
the same time forging agreements with large, national providers.
[SOURCE: CNET News.com, AUTHOR: Reuters Wire]
(http://news.cnet.com/news/0-1004-200-6831175.html?tag=mn_hd)
BROADBAND
HIGH-SPEED INTERNET CONNECTIONS GREW 63% DURING THE 2ND HALF
Issue: Broadband
The number of high-speed connections to the Internet grew by 63% in the
second half of last year, according to a report from the Federal
Communications Commission released Thursday. The total number of DSL phone
lines is now at two million, compared with the 3.6 million cable-modem
connections. DSL uses traditional phone lines, while cable modems use
cable-television lines. The study found in that high-speed service was
available in 56% of the most impoverished zip codes, compared with 42% a
year ago, while 96% of the richest zip codes have access.
[SOURCE: Wall Street Journal, AUTHOR: Mark Wigfield]
(http://interactive.wsj.com/articles/SB997376504159986693.htm)
(requires subscription)
See Also:
FCC RELEASES DATA ON HIGH-SPEED SERVICES FOR INTERNET ACCESS
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2001/nrcc0133.html)
FCC ISSUES INQUIRY ON ADVANCED TELECOMMUNICATIONS CAPABILITY
Issue: Broadband
Today, the Federal Communications Commission (FCC) initiated its third
inquiry under section 706 of the Telecommunications Act of 1996 into whether
"advanced telecommunications capability" is being deployed to all Americans
in a reasonable and timely fashion. Advanced telecommunications capability
refers to availability of high-speed, or broadband, connections. The Notice
of Inquiry issued today seeks information about extent to which broadband
infrastructure is being deployed to all Americans.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2001/nrcc0132.html)
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