The FCC Orders Comcast To Stop Blocking Customers From Sharing Online
Friday, August 01, 2008PAUL KANGAS: The Federal Communications Commission ordered Comcast to stop blocking its customers from sharing videos and other large files online. In a split decision, the commission voted to reprimand the cable giant for slowing customer downloads and misleading them about the practice. As Stephanie Dhue reports, that decision sets the stage for a new level of Internet regulation.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: FCC Chairman Kevin Martin likened Comcast's practice of slowing Internet traffic to the post office opening your mail.
KEVIN MARTIN, CHAIRMAN, FEDERAL COMMUNICATIONS COMMISSION: Would anyone here actually be OK if the post office was opening your mail and deciding that they didn't want to bother delivering it and hiding that fact by sending it back to you, stamped "address unknown, return to sender"?
DHUE: The commission ordered Comcast to end its practice of blocking peer-to-peer applications. The cable giant must file a compliance plan by the end of the year and explain the changes to customers. Comcast denies blocking access to web sites or online applications, saying it only delays some files during periods of peak congestion. Commissioner Robert McDowell disagrees with today's decision. He says it may lead to slower Internet speeds, since bureaucrats instead of engineers will be calling the shots.
ROBERT MCDOWELL, COMMISSIONER, FEDERAL COMMUNICATIONS COMMISSION: A new regime is tantamount to a congested downtown area without stoplights. Gridlock is likely to result.
DHUE: Free Press, the consumer group that filed the complaint against Comcast, is considering a similar action against Cox Communications. Free Press General Counsel Marvin Ammori called it a major victory for consumers.
MARVIN AMMORI, GENERAL COUNSEL, FREE PRESS: Now that we've established this precedent, I think it'll be a signal to all phone and cable companies not to interfere with online content or technologies.
DHUE: Stanford Group analyst Paul Glenchur says today's decision could have broad long-term implications for cable, telecom and equipment companies.
PAUL GLENCHUR, ANALYST, STANFORD GROUP: It certainly raises questions about how the network operators will manage these networks, either in the network or will they go more and more to metered pricing? Will they try to control congestion now by basically charging consumers more based on how much bandwidth they use?
DHUE: Comcast says it's considering its legal options. Analysts say if today's decision is overturned, it could spur Congress to step in. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.
