You are here FCC extortion of AT&T on Net neutrality was minimal, but horrible in other areas
Submitted by Scott Cleland on Fri, 2006-12-29 20:18
The FCC conditions imposed on the AT&T-Bell-South merger are among the most regulatory government micro-management that I have observed in my fifteen years covering the industry. The FCC minority leveraged a procedural and political anomolous circumstance to extort merger concessions that never would have survived an open democratic process. This was the functional equivalent of a back alley shake-down, where the companies had to give into unconscionable extortion in order to secure their commercial freedom.
That being said, it is clear that AT&T had to give up a lot of regulatory concessions in the areas of special access and divestiture of 2.5 MHz spectrum in order to fend off the worst of the net neutrality extortion.
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AT&T agreed to continue to abide by the FCC's net neutrality principles for another couple of years which simply extends the agreement they had already made on the SBC-AT&T merger last year for roughly a year longer.
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They also agreed to not degrade or prioritize traffic, like they had already publicly agreed not to do, with exceptions for their IPTV business, enterprise business and their wireless business.
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Bottom-line on net neutrality -- No big change here from what AT&T was already doing and pledging to do. AT&T appropriately resisted the worst of the net neutrality concessions.
I fully expect that net neutrality will remain the biggest regulatory issue going forward. The online giants will continue to manipulate the political process for competitive advantage, seeking to prevent non-neutral behavior from their biggest potential competitors when they are not neutral themselves and when they have more gatekeeper influence over the Internet than any broadband company.
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