Despite the 1996 Telecommunications Act that guaranteed better service and competition when hunting for high-speed internet providers – most commonly referred to through telephone lines as DSL – it looks like the competition is about to seriously dwindle. A monopoly on these services may soon explode, which is bad news for consumers. At least, that is one half of the argument.
This news comes from the Federal Communications Commission: the FCC is planning to classify DSL (digital subscriber lines) as information services instead of telecommuncation services. A move like this puts DSL in the same category as email and voicemail. This means fewer Internet service providers, which boils down to fewer choices for buyers and less pricing competition.
Current providers, such as Qwest and Verizon, resell their services to other competitors and Internet service providers. The new deregulation proposition means they will no longer have to do this. Providers may also acquire the power to name the Internet service provider that customers must use, such as MSN. Again, this takes away consumer choices.
On the other hand, even though the competition may soon wane between DSL providers, there will still be room for competition between avenues of connection. In addition to DSL, customers can use cable and satellite connections. As these different avenues compete, services should improve and begin price-matching.
Another note on the positive side of this debate is that telephone companies have been reigned in by rules and regulations that often increase their cost and risk in order to provide these services right now, so the new deregulation proposition would free them of these concerns.
Only time will tell the effect that deregulation will have on the masses.