National Cable & Telecommunications Association v. Brand X Internet Services
Encyclopedia
National Cable & Telecommunications Association et al. v. Brand X Internet Services et al., 545 U.S. 967
(2005), is a case in which the United States Supreme Court
declared 6-3 that a cable Internet
provider is an "information service," and not a "telecommunications service" and as such competing internet service providers, like Brand X, were denied access to the cable and phone wires to provide home users with competing internet service.
, which regulated telecommunications services. Providers of telecommunication services were subject to taxes and forced to sell access to their networks to the public.
The Telecommunications Act also defined information services as "the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications, and includes electronic publishing." These information services are not subject to the same taxes and regulations as telecommunications services.
Small Internet service providers in the era of dial-up service had equal access to home users because the first services were provided over Plain old telephone service
s (POTS) which were regulated as common carriers. Cable television operators then started to use the coaxial cables to provide high speed access. Small ISPs like Brand X wanted to use the coaxial cables, owned by private cable companies but using public rights of way, in a manner like common carriers. The Federal Communications Commission
(FCC) refused, and Brand X subsequently sued. The FCC won in the three judge panel in the Ninth Circuit but then lost en banc
.
This case was important in the battle over network neutrality in the United States
.
(NCTA) argued that, because they offered more than just telecommunication services, but other information services as well, they should be classified as an information service, and therefore not fall under the regulations imposed upon telecommunication services.
Ultimately, the FCC decided that cable companies were information services and did not have to allow their competitors access to their faster connections.
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...
(2005), is a case in which the United States Supreme Court
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
declared 6-3 that a cable Internet
Cable internet
In telecommunications, cable Internet access, often shortened to cable Internet or simply cable, is a form of broadband Internet access that uses the cable television infrastructure. Like digital subscriber line and fiber to the premises services, cable Internet access provides network edge...
provider is an "information service," and not a "telecommunications service" and as such competing internet service providers, like Brand X, were denied access to the cable and phone wires to provide home users with competing internet service.
Background
In 1996, Congress passed the Telecommunications Act of 1996Telecommunications Act of 1996
The Telecommunications Act of 1996 was the first major overhaul of United States telecommunications law in nearly 62 years, amending the Communications Act of 1934. This Act, signed by President Bill Clinton, was a major stepping stone towards the future of telecommunications, since this was the...
, which regulated telecommunications services. Providers of telecommunication services were subject to taxes and forced to sell access to their networks to the public.
The Telecommunications Act also defined information services as "the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications, and includes electronic publishing." These information services are not subject to the same taxes and regulations as telecommunications services.
Small Internet service providers in the era of dial-up service had equal access to home users because the first services were provided over Plain old telephone service
Plain old telephone service
Plain old telephone service is the voice-grade telephone service that remains the basic form of residential and small business service connection to the telephone network in many parts of the world....
s (POTS) which were regulated as common carriers. Cable television operators then started to use the coaxial cables to provide high speed access. Small ISPs like Brand X wanted to use the coaxial cables, owned by private cable companies but using public rights of way, in a manner like common carriers. The Federal Communications Commission
Federal Communications Commission
The Federal Communications Commission is an independent agency of the United States government, created, Congressional statute , and with the majority of its commissioners appointed by the current President. The FCC works towards six goals in the areas of broadband, competition, the spectrum, the...
(FCC) refused, and Brand X subsequently sued. The FCC won in the three judge panel in the Ninth Circuit but then lost en banc
En banc
En banc, in banc, in banco or in bank is a French term used to refer to the hearing of a legal case where all judges of a court will hear the case , rather than a panel of them. It is often used for unusually complex cases or cases considered to be of greater importance...
.
This case was important in the battle over network neutrality in the United States
Network neutrality in the United States
Network neutrality in the United States is a hotly debated issue subject to regulatory and judicial contention among network users and access providers...
.
Brand X
The Brand X Internet Service Provider argued that cable companies should be classified as a telecommunications service because they are conduit for simple data communication, and should therefore be required to allow their rivals to use the telecommunication component of their service. This would allow rivals like AOL and Earthlink to offer faster internet connections to their subscribers.National Cable and Telecommunications Association
The National Cable & Telecommunications AssociationNational Cable & Telecommunications Association
The National Cable & Telecommunications Association is the principal trade association for the U.S. cable TV industry, representing cable operators serving more than 90 percent of the nation’s cable households and more than 200 cable program networks, as well as equipment suppliers and providers...
(NCTA) argued that, because they offered more than just telecommunication services, but other information services as well, they should be classified as an information service, and therefore not fall under the regulations imposed upon telecommunication services.
Opinion of the Court
The court ruled 6-to-3 that the law regarding the distinction between telecommunication services and information services was vague, and that the FCC has the authority to make the decision. The decision of the Court of Appeals was reversed.Ultimately, the FCC decided that cable companies were information services and did not have to allow their competitors access to their faster connections.