A federal district court in Oregon Friday dealt a blow to AT&T by ruling that local regulators can compel the company to open its high-speed cable network to competing ISPs.
In a statement, AT&T called the ruling "inexplicable."
ISPs have been pushing for access to the broadband networks operated by cable TV companies, arguing that the move would enhance competition and bring high-speed Internet services to the public more quickly. Cable companies, many of which have begun to offer their own high-speed Internet services, have argued that ISPs should have access only to their own networks.
In an 11-page ruling released Friday, the Oregon court said local cable regulators in Portland and surrounding Multnomah County can require AT&T to share its network with competing ISPs as a condition of the company's merger with cable operator Tele-Communications, Inc.
AT&T already had fended off a similar challenge to its networks at the federal level, after America Online asked the Federal Communications Commission to condition the merger on AT&T allowing competing firms into its network.
In a statement, AT&T strongly implied that it will appeal the district court's ruling: "The actions taken by officials of Portland and Multnomah County are beyond the legal authority municipalities have to review cable franchise transfers. Clearly we will continue to pursue our legal case."
The National Cable Television Association offered a similar sentiment.
"We shouldn't over-read this decision," NCTA Spokesman Scott Broyles said in a prepared statement. "It wasn't too long ago that a federal district judge in Wichita, Texas, ruled that the Telecommunications Act of 1996 was unconstitutional. That's why we have appellate courts."
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