Supreme Court Takes on Cable Modem Case

In case you missed this, the ultimate decision on this case could have a huge impact on the cost of and how broadband service is distributed, offered. The decision will turn on the how cable modem service is defined under FCC regulations: as as a telecommunications service which is subject to common carrier regulatory requirements (including access to connections from third-parties) or as an information service which is free of such obligations.

Cable and large telcos are on the same side, hoping that the Court rules in favor of the FCC's decision to consider modems as an information service, with large telcos hoping for more of a de-regulatory arena on high-speed broadband which can benefit their own broadband businesses. Entities like Earthlink and NetZero favor the common carrier status because it could facilitate their own businesses if they could have easier and guaranteed access to existing broadband lines.

Cable companies fear a loss of their present competitive advantage and a loss of economic incentive to invest and drive the broadband infrastructure if competitors can connect to their facilities.