It looks like internet access prices will remain steady, and could even rise, in the near future. The Federal Communications Commission ruled in favor of corporate America today, saying that phone companies no longer need to share high speed data lines with independent internet service providers at discounted rates.
The decision was immediately hailed by lobbyists and corporate telecommunications companies, such as Verizon, and SBC Communications. It’s not surprising they’re ecstatic – the decision was a huge score for them and their team of lobbyists.
In a nutshell, phone companies who own the large telecommunication networks in the United States don’t have to offer discounts to anybody for access. Simply put, they can “kick out anybody they want from the networks by dramatically raising their prices.
Why would they do this? Because phone companies have their own internet access services. ‘Why allow competition, when you can monopolize the market yourself?’ It’s an interesting thought, that’s for sure.
Our friends at the FCC are not completely to blame. In June, the almighty Supreme Court of the United States ruled that Cable Companies do not have to ‘open up’ to independent internet providers, setting a precedent for the FCC decision.
Nothing dramatic will happen for at least a year, as the FCC ruling requires phone companies to provide one year notice before hiking network access rates.
It should be fun to see what happens with this one. I highly doubt phone companies will be ‘earthy’ and continue to offer network access at discounted rates. After all, why would they? There’s no incentive that comes with supplying competitors.
“Don’t let the door hit you in the ass, internet wholesalers are being told.