Cable ruling could open Internet competition

Friday, June 23, 2000 | 11:15 a.m.

THE ASSOCIATED PRESS

PORTLAND, Ore. -- Despite losing the fight to regulate AT&T Corp.'s cable network, city officials say their battle will nevertheless open up competition among Internet service providers.

The 9th U.S. Circuit Court of Appeals in San Francisco decided Thursday that the cable Internet service offered by AT&T was really a telecommunications service -- meaning it is subject only to Federal Communications Commission control, not the city's.

The court rejected a federal judge's ruling last June that Portland had the right to regulate the cable TV system AT&T acquired with its purchase of Tele-Communications Inc.

Greg Simon, co-director of the openNet Coalition, which was backing Portland, said AT&T was trying to avoid federal regulation and ended up putting itself squarely under the thumb of the FCC.

"If you read their press release they say they won because Portland can't regulate them as a cable company and their stock went up $2," Simon said.

"But I don't think their stock will go up when they give the rest of the story," he said. "They lost. The 9th Circuit has said, 'You're open now!' "