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February 20, 2003

The FCC thing I keep rambling about

MarketWatch.com summary of today's FCC decision. Sounds like they have successfully cut the baby in half, leaving everyone unhappy.

UPDATE: Chairman Powell's partial dissent

The first thing he objects to is the decision to get rid of line sharing. This issue hardly got any play in the run-up to the FCC decision, but it's a doozy. I didn't realize Powell was the one pushing to preserve it. Basically, line sharing is the reason we have a modicum of competition for DSL service. The supposedly deregulatory Powell wanted to keep it, and the supposedly pro-states and pro-competition majority killed it.

This matters more than it might appear. Since broadband is the foundation for many new services, including competitive VOIP, having broadband providers who don't control last-mile facilities is essential. The last-mile owners (phone and cable) will use regulatory and business tactics to hamstring what goes on top.

The network neutrality concept that several technology companies have been pushing just become that much more important.

Posted by Kevin Werbach at February 20, 2003 1:02 PM

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