Commentary

Just An Online Minute... Congress Should Ensure Broadband Competition

A coalition of advocacy groups this week embarked on a campaign to convince Congress that it should pass legislation requiring cable companies and telecoms to lease their broadband lines to competitors.

Such a law can't come soon enough.

Already, the United States is far behind other parts of the world in terms of broadband access. While there are a number of reasons, one that consistently stands out is the price. Many consumers view broadband as an overpriced luxury. Indeed, in major cities such as New York, high-speed connections are more expensive than some telephone plans -- and, for many consumers, not nearly as necessary.

Yet, two governmental rulings in recent months might well result in higher, not lower, prices for broadband. While the decisions came quietly, without the build-up of, say, the Grokster case, they're apt to have at least as large an impact on the future of technological innovation.

The U.S. Supreme Court in June backed the Federal Communications Commission's decision that cable companies need not share their broadband lines with competitors. Then, last week, the FCC issued a ruling stating that telephone companies also need not share DSL lines.

Together, these holdings could easily result in customers having exactly two choices for broadband access - a local cable carrier or a telecom. And it doesn't take a degree in economics to foresee that fewer consumer choices will translate into higher prices.

JupiterResearch Analyst Joseph Laszlo toldOnlineMediaDaily as much. "At least one of the things putting pressure on phone companies to keep DSL costs low is going to go away," he said.

Writing on his own blog, Laszlo was even less circumspect. "If anything, I'd be inclined to revise JupiterResearch's broadband forecast down after today," he posted after the FCC's decision. Previously, JupiterResearch forecasted that 78 percent of U.S. online homes would have broadband by 2010 -- though that prediction was contingent on companies continuing to lower the price.

Before consumers fully embrace broadband service, the price will have to drop. While Congress can't dictate the price of high-speed Internet access, it can, and should, ensure at least the possibility of competition.

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