No broadband action taken
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January 28, 1999: 5:47 p.m. ET
FCC says high-speed Internet access is being deployed in a 'timely fashion'
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NEW YORK (CNNfn) - The Federal Communications Commission Thursday concluded that no new rules are needed to speed the deployment of high-speed Internet access as companies are offering services in a timely fashion.
The decision comes as a blow to some Internet service providers that had hoped the commission would use Thursday's public hearing as a forum to consider requiring cable operators to offer their networks to Internet companies.
The FCC said in a report to Congress that broadband technologies - under which a single wire can carry several channels simultaneously - is "being deployed in a reasonable and timely fashion."
The Commission found that at least 375,000 residential consumers are purchasing broadband services, and that substantially more have access to broadband capability.
Two major alliances struck earlier this month indicated further acceleration of high-speed Internet access into the mainstream.
@Home Corp. (ATHM), which provides Internet services over cable wires, acquired Excite Inc. (XCIT) for $6.7 billion. Also, America Online Inc. (AOL) struck a deal under which it will offer Bell Atlantic Corp. 's (BEL) digital subscriber line access to AOL customers in the Bell Atlantic service area.
Steve Case, AOL chairman and chief executive officer, said the service will be available this summer.
The FCC has been studying the issue of high-speed Internet access since last summer. FCC Chairman William Kennard has previously stated that the government needs to promote competition to bring high-speed communications to homes and businesses, and some commissioners have expressed concerns that broadband services are not being rolled out rapidly enough in rural areas.
But the FCC said it found that "some companies are starting to build and deploy broadband facilities to serve numerous rural and low-income areas."
Some Internet service providers had lobbied the commission to force cable operators to open up their networks to Internet companies. Currently, cable companies do not allow independent Internet providers to offer their services over cable.
Industry executives have pointed to recent mergers that would further stifle competition, most notably AT&T Corp. 's (T) acquisition of cable giant Tele-Communications Inc. (TCOMA). Executive believe such deals would deny others access to the "last mile," which refers to communications traffic between switching stations and homes or offices.
Though the FCC did not take any action on the matter, the commission said it would continue to monitor broadband deployment closely and will issue an annual report on the topic.
The FCC also said "it would not hesitate to reduce barriers to competition and infrastructure investment" if market conditions required such action.
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