Court Decision Stymies FCC
A federal appeals court ruled in October the FCC improperly classified cable-modem transmission as an information service subject to fewer regulations than the predominant broadband technology used by the nation’s biggest phone companies: DSL. The FCC planned to appeal the decision before the 9th U.S. Circuit Court of Appeals. The decision “will throw a monkey wrench into the FCC’s efforts to develop a vitally important national broadband policy,” FCC Chairman Michael Powell said. The ruling was bittersweet for the largest phone companies. Arguing for fewer regulations, the four Bell companies have asked regulators to treat them the same as the cable companies. This argument for equality is a major premise behind their arguments to deregulate the broadband market.
USTA Asks for Porting Delay
The U.S. Telecom Association (USTA) alleged in court documents the FCC’s local number portability rules violate federal law and intentionally favor the wireless industry over the wireline sector. On Nov. 21 — three days before the FCC’s rules were set to go into effect — USTA and CenturyTel Inc. asked the U.S. Court of Appeals to delay the order.
Court Thwarts SBC Rate Hike
A federal appeals court said a state law that would have allowed SBC Communications Inc. to charge competitors more money to lease its local phone network in Illinois violated the Telecommunications Act of 1996. The law required the Illinois telecom regulator to evaluate only part of the formula used to calculate how much money SBC is authorized to charge AT&T Corp. and other local phone companies to lease its network, the 7th U.S. Circuit Court of Appeals ruled. However, the ruling did mark a partial victory for SBC. The court said a lower court judge erred in ruling state legislatures do not have authority to help make telecommunications policies. And the federal appeals court said the current wholesale rates SBC strongly opposes are six years old and must be reevaluated quickly.
Myrio Gets New Funding
Myrio Corp. has secured $9 million in additional funding. New investors include Siemens Venture Capital, which led the round, and individual industry executives. The company’s existing venture capital investors Alexander Hutton Ventures, NeoCarta Ventures and Ridgewood Capital also invested in this round. Myrio provides software, content and integration services to enable video services.
