In the dramatic penultimate episode of the telecom world’s favorite Telenovella Death Star Reborn: The AT&T-BellSouth Merger, the forces of Network Neutrality and competition win a dramatic victory!
AT&T has submitted a new 20-page letter outlining the conditions it will accept for the merger. Unlike the previous concessions in October, which amounted to little more than a joke and a promotional offer, this set of conditions is quite thorough. The breadth and scope of the conditions leaves me positively breatheless. To mangle Woody Gutherie for a moment:
You shall be neutral, in all your networks
From the first tier backbone, to the retail last mile,
from special access, to the U-N-Es
You shall not leverage market power!
I need a couple of different posts to really cover the implications. But here are the headlines:
1) Network neutrality is required in its fullest form. AT&T cannot prioritize or degrade service based on third party payments or affiliation anywhere between the peering point and the residential “last mile.” So not only has the definition of network neutrality been solidified consistent with that advocated by Save Our Internet and others, but it has been extended from the last mile to the vertically integrated backbone.
2) Residential fixed WiMax is included in the definition of “last mile.” This is the first time net neutrality has ever been applied to a wireless network.
3) AT&T must divest the 2.5 GHz spectrum it would acquire from BellSouth. This addresses a concern raised by Media Access Project and others that AT&T/BS would have an overwhelming spectrum advanatage against other wireless players.
4) AT&T has an agressive build out schedule to provide DSL at 768 KBPS for $19.95/month throughout its coverage area.
5) AT&T agrees to numerous conditions that amount to a return to tariffs and price caps for telecom and DSL resellers and special access (commercial) customers. AT&T can no longer lock competing local exchange carriers (CLECs) or DSL resellers in non-disclosure agreements.
Bonus: AT&T agrees to “repatriate” 3,000 jobs BellSouth had shipped overseas and locate at least five hundred of these “repatriated” jobs in New Orleans.
In tomorrow’s concluding episode, expect the FCC to release the final Order on Friday December 29 and the deal to close immediately thereafter.
Roll credits. Special thanks to Commissioners Copps and Adelstein, for their amazing tenacity and skill. Free Press, Consumers Union, CFA, and the rest of the public interest community that fought like Hell. The tens of thousands of people who filled comments. And Commissioner Robert McDowell, for his amazing act of ethical fortitude.
Stay tuned . . . .