Tag Archives: open internet

AT&T Halts Fiber Rollout over New Net Neutrality Push

AT&T

After the recent statements made by President Obama and FCC Chairman Tom Wheeler regarding the possibility of reclassifying broadband providers under the Title II regulations of the Communications Act for utilities, AT&T has settled to pause its planned rollout of its new U-Verse GigaPower fiber service until the expected argument regarding the issue is settled once and for all. CEO Randall Stephenson said that it is not feasible to make the move investing the amount of money it would take to deploy fiber to 100 cities while being still unaware of the rules under which those investments will be governed. Therefore, it is wiser to simply pause and take time to develop the insights and understanding about how those rules will be implemented and what their impact would be.

Reacting to the statements made by Obama and Wheeler on the Net neutrality push, AT&T threatened legal action if any attempt was made at Title II classification for broadband providers along with other carriers. Although this latest move by AT&T seems logical in the turn of events, it also throws some light on the psychology of the major carrier. AT&T is indeed feeling threatened by the statements made by Obama and Wheeler regarding the new push because being reclassified as a utility would mean that the company would no longer enjoy the advantages it currently does as a broadband provider.

Without the advantages in infrastructure control and local monopoly power that AT&T has been benefiting from all these years, it would be forced to compete against local competitors and resellers, much like its namesake predecessor did when the Bell System was broken up during the 1980’s, which lead to competition and growth in the telephone sector that drove down prices for local and long-distance calling.