NCTA vs. Brand X
One of the more well known court cases of our industry is the National Cable and Telecommunications Association's court case with Brand X. The main idea behind the case was as follows: Should broadband cable be classified and regulated as an information service like other internet service providers? Or should it be administered in the same manner as a telecommunications service like telephone service is?
Internet service started growing and developing in the early 1990s. The FCC did not have a major effect by acting on the new technology until it attempted to define the service in the Telecommunications Act of 1996.
Telecommunications services would be defined as either a Title II common carrier telecommunications service, or a non Title II information service. According to the court case of NCTA vs. Brand X, a telecommunications service is "the transmission, between or among points specified by the user, of information … of the user's choosing, without change in the form or content of the information as sent and received ("NCTA vs. Brand X", 2005).”
An information service is defined as “’the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications . . .("NCTA vs. Brand X", 2005)’” The overlapping characteristics of these services cause the biggest controversy of the issue.
Brand X Internet Services is an Internet Service Provider (ISP) that sought to interconnect with cable broadband internet providers by purchasing access at low rates regulated by the government. Brand X is a proponent of the keeping broadband cable providers classified as common carriers in order to benefit from the low rates and high quality facilities. Brand X filed suit in 2003 against the FCC’s 2002 ruling to deregulate cable modem service. The case took place in an appellate court and received a favorable decision for petitioner; the FCC’s decision was overturned (Hearn, 2005a).
In April of 2004, the NCTA filed an appeal with the Supreme Court, based on this case, and received backing from the Justice Department and the FCC. The appeal was granted, and on June 27, 2005 the Supreme Court decided in favor of the original ruling by the FCC, declaring cable internet service an information service and not subject to title II regulations("NCTA vs. Brand X", 2005).
One of the main ramifications of this court case is that broadband cable providers are no longer required to share their facilities with their competitors which would have allowed more competition. Another outcome of this ruling is a precedent of deregulation set for other broadband internet service providers. Companies like Verizon and AT&T provide broadband internet service through digital subscriber lines (DSL).
Hearn, T. (2005a). Access Denied. Multichannel News Retrieved February 7, 2006, from http://www.multichannel.com/article/CA623062.html?display=Search+Results&text=brand+X
NCTA vs. Brand X (Supreme Court of the United States 2005).