Market forces are driving cable companies to implement cable open...
Market forces are driving cable companies to implement cable open access without govt. involvement, and same forces will drive spread of cable-based telephony, NCTA Pres. Robert Sachs said at NARUC summer meetings in Seattle. Sachs said in speech: “Consumer…
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choice of multiple ISPs over cable is being resolved by the market through voluntary, arm’s-length business agreements, without government involvement.” He said local open access initiatives had been defeated in the courts and no proposed state open access law had made it through any state legislature. Sachs commended NARUC for “wisely choosing not to endorse mandated access to cable facilities.” He said at least top cable companies had 4 different trials under way of multiple ISP access over their cable modem platforms. He said cable companies 18 months ago began moving away from exclusive ISP agreements and some began voluntarily to carry multiple ISPs because they realized “offering a choice of ISPs is in everyone’s best interest.” He said cable companies were beginning to offer competitive local phone services providing substantial savings. As result, Sachs said, cable companies now were providing business phone service in more than 100 markets serving 1.3 million residential phone companies using traditional circuit-switched technology. He said cablephone hadn’t spread faster because many companies were awaiting development of commercial-quality voice-over-Internet technology. He cited field trials under way in Colo., Mo. and Wis. of Internet-based phone technology as 2nd-line service. In next 5 years, Sachs said cable would become leading facilities-based competitor to incumbent telcos, largely displacing resale and unbundled network element (UNE)-based services. In response to question, Sachs said no cable company had been approved to receive federal universal service subsidies, but Cox Cable in Cal. had been authorized to receive subsidies from state’s universal service fund. On another question, he said it was true that cable video services had refused to carry ads from their telecom competitors: “The practice varies by company, but this is fairly common among media companies. Our competitors have many other advertising media they can use.”