20-Oct-99

Growing Broadband Competition Is Good News For Consumers

The following is a Statement from Jonathan Zuck, President of the Association for Competitive Technology Today's announcement by the nation's largest local phone company is welcome news to consumers awaiting the wonders of high-speed Internet access. On behalf of IT businesses that need this technology and consumers everywhere, the Association for Competitive Technology (ACT) applauds SBC Communications, Inc.'s decision to spend $6 billion over the next three years to make high-speed, or ""broadband,"" Internet access available to almost 80 million U.S. homes. The SBC announcement is both bad news and good news for cable companies who are investing billions of dollars to offer broadband Internet service to their customers. SBC's investment will raise the competitive stakes in the broadband marketplace, where cable has been battling local phone companies, satellite and wireless Internet services. On the other hand, greater competition should satisfy critics who say that cable systems don't offer their customers enough choices for broadband Internet access. But growing competition won't satisfy some Internet service providers (ISPs), which want government to force cable systems to route Internet traffic over ISP lines-and take a share of the monthly fees paid by customers. While a coalition of these ISPs has gained ""forced access"" in four well-publicized cases, many more localities have embraced a competitive broadband strategy resulting in increased broadband access. Last week, the Federal Communications Commission (FCC) recommended a hands-off approach, concluding that regulation could slow the deployment of broadband. The FCC rightly recognizes the consumer focus and market dynamics at work in providing high-speed Internet access. First, consumers and Internet content providers are demanding that broadband service be deployed quickly, across the widest possible area. Second, it's essential to preserve the financial incentives for broadband providers to make the tremendous investments needed. And third, all levels of government should resist creating regulatory restrictions that will slow down deployment. As an IT industry group that supports a competitive, market-driven IT economy, ACT stands firmly behind these basic principles. ACT is an industry trade association representing businesses and professionals in computer software and hardware development, and consulting and Internet services businesses. Protecting the freedom to achieve, compete and innovate, ACT is dedicated to preserving the role of technology companies in shaping the future of the industry. Source: Association for Competitive Technology Web site: http://www.actonline.org