Tougher Conditions Sought for AT&T-BellSouth Merger

It’s Our Net, a coalition of net neutrality proponents, said AT&T’s pledge to meet the FCC’s 4 net neutrality principles won’t ease their concerns unless a 5th principle - - promising nondiscriminatory treatment of applications, content and services -- is added. “End users are entitled to broadband services from AT&T that don’t discriminate,” said Rick Whitt, pres. of NetsEdge Consulting and a coalition member. “AT&T has the ability and stated intention to discriminate,” he said during an It’s Our Net call-in news conference.

The Internet’s “open architecture was enabled by a longstanding regulatory framework of nondiscrimination requirements,” It’s Our Net said. However, regulation has been cut back, leaving a “threat of broadband providers discriminating against unaffiliated Internet content, applications and services,” the filing said. Fueling the problem is “concentration in the consumer broadband market [which] will be exacerbated by the proposed merger,” the group said.

Conditions should last until competition can be proven, which probably would be “a very long time,” said Public Knowledge Pres. Gigi Sohn, another coalition member. Media Access Project Pres. Andrew Schwartzman said: “Some of us bridle at the way AT&T portrays the net neutrality debate as a battle of giant companies.” Many small, innovative companies also are calling for protection, he said.

AT&T Senior Exec. Vp Jim Cicconi said the group’s comments “smack of public relations-driven opportunism as opposed to a thoughtful approach to policymaking.” The place for debating net neutrality is in Congress or an industrywide proceeding at the FCC, he said. “It is not appropriate or justified to set policy in this area based on applying merger conditions on only one company,” Cicconi said.

A group of competitors, led by CompTel, was preparing at our deadline comments that appeared restrained. The group said it wanted not new conditions but strengthening of the conditions already proposed by AT&T. CompTel said the FCC should, among other conditions: (1) Lengthen the duration of conditions. (2) Make sure AT&T’s $10 a month consumer broadband offer doesn’t result in a “price squeeze.” AT&T’s wholesale charges to CLECs are higher than $10, CompTel said.

AT&T’s proposals “are nothing more than short-term candy for a few instead of longer-term lower prices and better choices for all consumers,” said Consumers Union Senior Vp Gene Kimmelman in a news release. Consumers Union, joined by Consumer Federation of America, Free Press and U.S. Public Interest Research Group told the FCC the merger will result in higher prices and “lackluster” service for consumers. “The FCC needs to step up and impose meaningful conditions that will salvage what little competition is left,” said Kimmelman.

Merger Proponents Weigh In

Among the dozens of comments were many in support of the merger. The South La. Economic Council said the merger “will address on of the most critical needs required of any community seeking to grow its economy and new jobs -- ubiquitous broadband Internet access.” Rainbow Push Coalition’s Jesse Jackson said “lower broadband prices and more investment in broadband networks would help extend new technologies to low-income communities and propel the next generation… into the digital era.”

Eight Republican senators told the FCC they shared concerns expressed earlier by Senate Commerce Committee Chmn. Stevens (R-Alaska) and House Commerce Committee Chmn. Barton (R-Tex.) about the agency’s delay in acting on the merger. DoJ “approved this proposal unconditionally after conducting a thorough investigation” and the FCC should act by its new Nov. 3 deadline, they said. The letter was signed by Sens. DeMint (S.C.), Hutchison (Tex.), Lott (Miss.), Smith (Ore.), Sununu (N.H.), Vitter (La.), Shelby (Ala.) and Burr (N.C.). - - Edie Herman