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This issue goes far beyond so-called "open access" to cable systems.
Before its decision to acquire Time Warner, which has extensive cable assets, AOL pushed for the government to require open access to cable systems by Internet-service providers.
But it also heightens the contrast between the open, free flow of information that was the original impetus for the Internet and today's cash-cold realities: All too predictably, now that it owns one, AOL has already backed off its outraged demand for open access to cable systems, saying the market should decide.
In its high-profile push for open access to cable, AOL pointed to Federal regulation that requires cable owners of content to offer their programming at equitable fees to competitors such as direct broadcast satellite an area in which the yin and yang of content ownership and conduit didn't achieve natural balance at Time Warner or elsewhere.
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As former FCC economist Tom Hazlett says, "There's 'open access' to cable systems right now".
Certainly of greater concern to the F.C.C. commissioners last week seemed to be whether the merged company would make good on its promise to give all Internet content providers open access to its cable systems.
AT&T declined to comment yesterday on the F.T.C.'s new rules, which would not apply to the company unless the government takes future action to extend open access to other cable companies.
It also wants to open up lines that broadband retailers use to carry web traffic over their own core networks, and open access to the cables leased by mobile operators to carry traffic from masts.
No wonder it says AT&T should have to open up access to cable lines when it buys TCI.
The FCC may move to open up access to cable television on the basis that the big cable companies are too dominant, according to the NY Times.
Meanwhile, the battle over open access to data over cable has yet to be resolved in the courts.. David Levy, a technology analyst at Chase H&Q in San Francisco, thinks it's going to be a few years before any of the traditional ISPs are turning net profits.
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