AT&T, a long-distance giant in the
telephone industry, has been unsuccessfully trying to break into the local-calling market
for quite some time. Their failure stems from the fact that many local phone lines are
owned by Pac Bell, GTE, SouthWestern Bell, NYNEX, and the like. These companies have not
granted access to their lines to AT&T. Well, AT&T has a new strategy. They've just
purchased Tele-communications Incorporated (TCI) in a highly-controversial $48 billion
merger. AT&T also owns Media One and many other major cable providers in the United
States. These acquisitions have rocketed AT&T into the forefront of the broadband,
digital cable, and ISP industries.
With this bold move, AT&T has upset quite a few companies, including AOL, GTE, and
MindSpring Enterprises, just to name a few. AT&T plans to provide complete local and
long distance telephone service, Internet service, and digital cable service to its
customers in an all-in-one package. High-tech cable systems will be created to provide
these services to millions of customers. AT&T doesn't feel that other companies should
be able to utilize their cables once they've been completed. The cable systems will have
cost the company billions of dollars to create, and they believe that they should enjoy
the fruits of their labor.
The companies opposed to AT&T's plans feel that AT&T is creating a monopolistic
situation that will siphon off other companies' existing client base and will eventually
lead to their financial ruin. They believe that AT&T should provide 'open access' to
their lines so that other telephone and Internet service providers can utilize the system.
You see, AT&T is offering to replace cities' old telephone and communication lines
with high-speed, bi-directional lines. AT&T will provide all of the necessary funds
for the project as long as the city agrees to contract solely with them. If city
governments decide to contract with AT&T, many companies will be 'left out of the
loop.' Local telephone companies and Internet service providers would be blocked from
using the AT&T lines.
Many consumer groups are also opposed to the AT&T plan. They believe the public should
be able to choose their own local and long-distance telephone companies. They are
especially concerned with AT&T's plan to block customers from choosing another
Internet service provider. They believe that this monopolistic situation would lead to
drastic rate hikes and the collapse of local Internet Servce Providers.
Not even local governments can agree with each other on the issue. The city of Portland
told AT&T that it must open its lines to outside Internet service providers. AT&T
protested the decision and sued, but a federal judge ruled in favor of Portland's
decision. The city of San Francisco blocked a proposal that would have forced AT&T to
open up its local lines to outside Internet service providers.
Federal Communications Commission Chairman William Kennard believes that
local governments should keep their hands out of communications policy making. He claims
that regulation of the communications industry is solely the responsibility of the FCC.
The FCC doesn't feel that the industry needs government intervention at this time;
AT&T supports the decision. Local government officials have criticized the FCC move,
claiming that it's an attempt to undermine the authority of local government. For now, it
appears that the FCC will have the final say in the matter.
With so many companies and government agencies disputing the issue, a quick, easy solution
is not in sight. The decisions made in the near future will determine who provides your
cable, telephone, and Internet services. Should AT&T be able to solely utilize the
network that they're building? Should outside telephone companies and Internet
service providers be able to tap into the lines? Below is an objective list of links
where you can get more information and decide for yourself.
http://www.nogatekeepers.org
http://www.home.net/source
http://www.fcc.gov
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