ITAA Slams DSL Deregulation Plans

by Glen Shapiro, LawAndTax-News.com, New York

09 August 2005

According to a statement released last Wednesday by the Information Technology Association of America, many broadband ISPs could ultimately be forced out of business if the Federal Communications Commission (FCC) rolls back unbundling regulations for DSL service providers according to a proposal currently under consideration.

Speaking at a recent meeting of the National Association of Regulatory Utility Commissioners (NARUC), FCC Chairman Kevin Martin revealed that the Commission is already considering a proposal to significantly deregulate DSL service, following a Supreme Court decision affirming the Commission's authority to change the regulations.

However, ITAA President Harris N. Miller argued that:

"Until the day we see legitimate competition in the wholesale broadband telecommunications market, we cannot remove these regulations and expect a competitive market for consumers."

He continued:

"By taking this step, the Commission would condemn consumers to higher prices, fewer choices, lower service quality, and reduced innovation."

The Association has argued that if the FCC removes the obligation on the country's four incumbent telecom carriers (or Bells) to share their DSL lines with rival firms, it will "condemn consumers to higher proces, fewer choices, lower service quality, and reduced innovation".

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