AT&T'S FIRST
AMENDMENT PROBLEM, AND OURS
Costly
by Brendan I. Koerner
Post
date 05.08.01 | Issue date 05.14.01 |
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When you think "First Amendment martyr," you
don't exactly think AT&T.; It's a safe bet that
few executives at the telecom giant tote aclu
membership cards or pace their office corridors
reciting the lyrics to "Fight the Power." But
AT&T; has decided that channeling William Kunstler
is a shrewd (if deeply dishonest) way to ward
off government regulation. And, incredibly,
it's working.
In July 1999, AT&T; filed a lawsuit in Broward
County, Florida, claiming its First Amendment
rights were under siege. At issue was the use
of "broadband" cable lines--wires that now carry
cable television but are capable of carrying
telephone, cable, and Internet data simultaneously.
AT&T; owns the lines in Broward County, and officials
there had ordered the company to give competing
Internet service providers access to the wires
for a reasonable fee. According to AT&T;, by
dictating what content traveled over its wires,
Broward's ordinance trampled on its right to
free speech.
Although local authorities have long regulated
use of local telephone lines--for instance,
compelling the Baby Bells to let service providers
like America Online use their pipes--a Florida
court sided with AT&T.; In a surprisingly strident
27-page opinion issued last November, Judge
Donald Middlebrooks compared Broward's officials
to Henry VIII, who required printers to obtain
royal licenses. Unless regulators could prove
a compelling reason for AT&T; to open its cable
to outsiders, he concluded, the company should
be free to operate its broadband network without
interference. Rather than appeal and face a
pricey and protracted legal struggle, Broward
County decided this April to repeal its ordinance
altogether.
That was very unfortunate. Because there is
an extremely good reason for laws like the one
Broward County passed: They prevent companies
like AT&T; from developing monopolies over Internet
access. If somebody's First Amendment rights
are at stake here, it's not AT&T--it;'s the individuals
whose access to information a monopoly could
restrict. By giving in, Broward set a precedent
that could scare off other local authorities
considering similar regulations. And, while
the federal government could still try to step
in, the Bush administration isn't likely to.
As a result, AT&T; may soon monopolize broadband
cable--and with it much of the nation's Internet
access--thus turning cyberspace into the equivalent
of a restaurant that serves only Pepsi.
To understand why, you need to understand all
the subtle ways Internet service providers can
control the content their subscribers see. An
Internet service provider--whether it's a large
company, like Earthlink, or one of the nation's
6,000-plus local outfits--can block access to
certain sites, or even whole portions of the
World Wide Web. More subtly, it can steer users
toward favored sites or brands. Sound overly
conspiratorial? It isn't. AOL filters out pornography
and, with it, some medical and mainstream artistic
sites. Roadrunner, the fledgling broadband service
owned and operated by Time Warner, is notorious
for assailing users with pop-up plugs for CNN
and Warner Brothers cartoons.
This isn't a big problem right now, because
most people still use telephone lines to access
the Internet. Although the owners of those lines
might be tempted to force users to go through
their service providers--for example, Verizon
might want Verizon telephone customers to use
only Verizon's Internet service--local government
regulations prohibit them from doing so. As
a result, people can choose among a wide variety
of companies providing access to the Internet.
They can shop around for the best price or the
kind of access that best suits their purposes.
And it also means they aren't prisoners of their
providers' editorial control. If you don't like
AOL's filters, you can simply subscribe to a
service that doesn't have them.
The danger is that, because of the way technology
is developing, this freedom may not last. Broadband
represents a whole new chapter in Internet usage.
Because of its huge capacity for carrying information,
it will soon be possible to bundle television,
pay-per-view movies, World Wide Web data, and
interactive communication all in one package.
This means broadband users will have one screen
through which they can view espn's "SportsCenter"
(the network's sports news show), read articles
on espn.com (the network's website), and buy
replica fan gear in the espn TeamStore (the
network's online shopping site). The catch is
that the information has to travel over existing
residential broadband lines, 80 percent of which
AT&T; now owns. If the government regulated cable
lines the way it does phone lines--by prohibiting
the owner of those lines from restricting who
can use them to provide Internet service--this
would be no big deal. But that's exactly what
Broward County tried to do--and Judge Middlebrooks
said it was unconstitutional.
AT&T;, of course, insists it has no interest
in restricting information. It notes that its
existing Internet service providers (such as
Excite@Home) allow users "unlimited possibilities"
to roam the Internet. But the company will be
sorely tempted to hedge on that promise in the
coming years. It has spent more than $100 billion
gobbling up America's cable lines and acquiring
major pipe-laying outfits like MediaOne and
TCI. Since subscription fees from Internet users
will probably be inadequate to recoup that massive
investment, AT&T; will have to find new ways
of making money. And peddling preferential treatment
is the obvious way to go.
In the most likely scenario, AT&T; would sell
the rights to prominent placement on Web portals,
faster links, better access, and so on--all
for a steep price. Companies with deep pockets
would gobble up these premiums. Less affluent
content providers would end up in a cyberspace
"slow lane" or denied service altogether. Nonprofit
organizations, for example, often enjoy steep
discounts from independent service providers.
Will AT&T; be so eager to provide affordable,
effective wiring to, say, a consumer group critical
of the telecom industry? What about a political
candidate running against one of AT&T;'s Capitol
Hill allies? Or a magazine that publishes articles
lampooning corporate free-speech claims? In
the hands of a monopoly like AT&T;, surely this
sort of control would do far more damage to
free speech than the kinds of regulations Broward
County had proposed.
In its defense, AT&T; and other opponents of
open-access laws insist there will be no monopoly--that
consumers unhappy with the choices available
through broadband can always use alternative
technologies to connect to the Internet, just
as they do now. There are, for example, digital
subscriber lines, or DSL, which phone companies
offer. But, for residential consumers, DSL service
is more expensive, available in fewer households,
and less equipped to handle video content. AT&T;
cites wireless technology as another possible
competitor to its broadband service, but it
may be a decade before such connections provide
broadband's speed. Meanwhile, as broadband becomes
more popular, more and more content will be
available only through broadband technology
(in the same way that some websites today are
set up so you can't really navigate them with
a standard modem). The supposed alternatives
notwithstanding, people interested in certain
kinds of content would have no choice but to
get it through broadband, which would mean using
AT&T;'s cable lines.
Although the Florida ruling may chill state
action elsewhere, successful federal intervention
is still possible--in theory. Last June the
Ninth Circuit Court of Appeals ruled that broadband-enabled
cables do indeed provide a telecommunications
service, potentially clearing the way for the
Federal Communications Commission to regulate
them. (The ruling was not entirely clear on
this point, since federal regulation was not
the matter at hand in the case.) But the FCC
has long maintained a hands-off approach to
cable television; and its new chairman, Michael
Powell, isn't about to change course, even though
cable itself is about to undergo a huge technological
transformation. When pressed on the topic in
February, Powell hemmed and hawed, then suggested
that "openness is not always good." Two months
later, in a speech to the National Association
of Broadcasters, he declared that FCC restrictions
on media ownership were "offensive to First
Amendment values." The Broward County decision
can only embolden him further by ostensibly
giving him free-speech cover to stay out of
the fray.
This will please opponents of broadband regulation
and of government regulation more generally,
who liken Broward-style laws to an appropriation
of private property. But if the FCC lets AT&T;
have its way on broadband, it won't be standing
up for the rights of a private entity; it will
be forfeiting ownership of a public asset. It
was the government, after all, that first developed
the Internet, as a communication tool for Pentagon
researchers. And it was university-based hackers
who figured out how to mesh unix with Internet
protocols, perfecting the guts that drive the
World Wide Web. AT&T;'s role in broadband development
consists of a smart business decision to buy
up cable lines--a significant expense, to be
sure, but not one that should trump the public's
right to recoup its own investment.
BRENDAN I. KOERNER
is a Markle Fellow at the New America Foundation.
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