9th CIRCUIT UPHOLDS CABLE MODEM AS TELECOM

Telcos may have been granted regulatory parity with cable operators, but it's definitely not the kind they wanted. Last week, the 9th Circuit Court of Appeals let stand an October decision by a three-judge panel that declared cable modem offerings to be telecommunications services.

As a telecom service, cable modem access is subject to the myriad rules that apply to common carriers, including the mandate to open their networks to competitors. The FCC decision had ruled cable modems as information services, which are largely unregulated.

The new classification is scheduled to take effect on April 8.

FCC Chairman Michael Powell expressed disappointment with the appeals court ruling, noting that a previous 9th Circuit ruling prevented the court from considering the merits of the case.

“By standing on a prior decision, this court, as [9th Circuit Judge Diarmuid] O'Scannlain noted in October, ‘effectively stops a vitally important policy debate in its tracks,’” Powell said in a prepared statement.

Powell said the FCC will “study our options” in determining its next step. If the FCC appeals to the Supreme Court, the agency will be supported by the National Cable & Telecommunications Association, according to an NCTA press statement.

However, law enforcement officials have long wanted to have cable modem access declared a telecommunications service, which guarantees them greater surveillance capabilities.